3 Must-Own Dividend Stocks

These three top Canadian dividend stocks provide not only incredible dividend income over time but also capital-appreciation upside.

| More on:
Target. Stand out from the crowd

Image source: Getty Images

Dividend stocks can provide many incredible benefits to long-term investors. Of course, these companies provide a great source of income for investors. For those heading into, or are in, retirement, that can be a big deal.

However, apart from their monthly, quarterly, or yearly payments, investors can also gain from the appreciation of their stock values. Thus, the potential for higher total return with stocks relative to bonds tends to excite many long-term investors.

Accordingly, no matter what stage you are at in life, investing in dividend stocks is a great way to grow your overall wealth. Here are three of the top options that I think are worth buying right now.

Restaurant Brands

Headquartered in Toronto, Restaurant Brands (TSX:QSR) is a multi-national fast-food restaurant company focused on the Canadian and U.S. markets. Currently, QSR stock provides investors with a dividend yield of 3.5%, and has grown its yield over the past eight years. Thus, from a dividend-growth perspective, there’s a lot to like about this company.

Restaurant Brands has been able to grow its dividend in large part due to consistent cash flow growth. The company’s earnings last quarter came in just shy of US$1.7 billion, with earnings per share of US$0.72.


Fortis (TSX:FTS) is a global electricity and natural gas distribution company that primarily operates in Canada, the U.S., and the Caribbean regions. Its dividend payment for the last quarter is $0.56 per share, which is payable on June 1, 2023. The company’s dividend yield comes in around 3%, with a payout ratio of 79%. 

The company’s recent earnings report also provided an encouraging outlook for investors. Fortis brought in US$0.72 in earnings per share (EPS) this past quarter. This was considerably higher than the company’s year-ago quarter, which saw US$0.63 in EPS.

As Fortis continues to benefit from increased prices over the long term (due to its core regulated utilities business), investors stand to reap these gains in the form of higher dividends over time. Fortis has raised its dividend for nearly five decades straight, making this among the best dividend-growth stocks in the world.


Enbridge (TSX:ENB) is an international energy and pipeline company with its headquarters in Alberta, Canada. It has North America’s longest pipeline system and deals in crude oil, natural gas, and liquid hydrocarbons, along with other renewable energy projects. 

As with its peers on this list, Enbridge’s strong dividend yield of 6.8% is supported by strong fundamentals. The company has provided investors with a dividend distribution for the past 68 years, with dividends compounding annually at a rate of approximately 10% per year over the past 28 years.

Those looking for a bond proxy have done well holding Enbridge stock over the long term. This remains among the top dividend stocks I would recommend investors at least consider — especially in these uncertain economic times.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has positions in Enbridge and Restaurant Brands International. The Motley Fool recommends Enbridge, Fortis, and Restaurant Brands International. The Motley Fool has a disclosure policy.

More on Dividend Stocks

potted green plant grows up in arrow shape
Dividend Stocks

Best of Both Worlds: 3 Growth Stocks That Also Pay Dividends

Dividend stocks are great until a downturn ends. But luckily, these three dividend stocks also offer a massive amount of…

Read more »

Payday ringed on a calendar
Dividend Stocks

Monthly Passive Income: 2 Top TSX Dividend Stocks to Buy in June 2023

Here are two of the best TSX monthly dividend stocks you can buy in June 2023.

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

RRSP Wealth: 2 Great Canadian Dividend Stocks to Buy in June 2023

Top TSX dividend stocks are now on sale.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Retirees: 2 TSX Dividend Stocks That Reliably Pay You Cash

With strong underlying businesses, high-yielding dividends, and stable cash flows, these two TSX stocks can be excellent investments to consider.

Read more »

sad concerned deep in thought
Dividend Stocks

Better Buy for TFSA Passive Income: Telus Stock or TD Bank? 

Your passive income depends on the dividend yield you lock in. Telus and TD Bank are good investments, but which…

Read more »

Dividend Stocks

Turn a $10,000 Investment Into $844 in Cash Every Year

The power of compound interest from regular investments in quality dividend stocks can deliver solid long-term returns and make you…

Read more »

Dividend Stocks

Grab This 10.8% Dividend Yield Before It’s Gone!

This dividend stock is down 43% in the last year, and it's about to turn around in the near future.…

Read more »

grow dividends
Dividend Stocks

2 TSX Dividend Stocks With Seriously Huge Payouts 

If you are looking for dividend payouts of up to 7-11% of the stock price, now is the time, as…

Read more »