Many investors dream of one day having their portfolio pay for their everyday expenses. One way that investors can achieve that goal is by investing in dividend stocks. By holding these kinds of stocks in a portfolio, investors can receive a recurring (and hopefully growing) income. Fortunately, the Canadian stock market offers a lot of very strong dividend stocks to investors. In this article, I’ll discuss three TSX dividend stocks you should buy next week.
Start with this top dividend stock
An article covering a list of top Canadian dividend stocks wouldn’t be complete without Fortis (TSX: FTS). As such, I figure it’s best to get the obvious, and one of the best, pick out of the way. For those that are unfamiliar, Fortis provides regulated gas and electric utilities to more then three million customers across Canada, the United States, and the Caribbean.
Because utility companies tend to have very stable businesses, regardless of what the economy looks like, its revenue doesn’t really fluctuate during rough market conditions. That allows companies like Fortis to plan dividend distributions much ahead of time. For example, the company has already announced its plans to raise its dividend at a rate of 4-6% through to 2027. Oh, did I mention that this company already boasts a dividend-growth streak of 49 years? That’s the second-longest active dividend-growth streak in Canada.
A very recognizable company
Canadian National Railway (TSX: CNR) is the next stock dividend investors should consider buying next week. This company operates nearly 33,000 km of track. Its rail network spans from British Columbia to Nova Scotia. Because of that wide reach, it’s very hard for Canadians to avoid seeing one of its trains every so often. That recognizability and market dominance should be enough to entice investors to consider buying shares in this company.
However, if it isn’t, then consider a position because of its strong dividend history. With a dividend-growth streak of 26 years, Canadian National stands among the elite in that regard. Only 11 TSX-listed companies currently hold a dividend-growth streak of 26 years or longer. In addition, Canadian National’s dividend has grown at an impressive rate over that period. Since December 1996, Canadian National’s dividend has grown at a compound annual growth rate of 15.7%.
Have you considered buying this stock?
Finally, investors should consider buying Alimentation Couche-Tard (TSX: ATD). This is a tremendous company that I feel doesn’t get the recognition it deserves. Alimentation Couche-Tard operates convenience stores under several banners. This includes its flagship Alimentation Couche-Tard and Mac’s locations, but also includes Circle K, On the Run, and Dairy Mart among many others. All considered, Alimentation Couche-Tard operates more than 14,000 locations across 24 countries and territories.
Like the two stocks listed above it, Alimentation Couche-Tard is a Canadian Dividend Aristocrat. It has managed to raise its dividend for 11 years. With a dividend-payout ratio of 12.7%, I believe this stock could continue to comfortably raise its dividend over the coming years.
