Investors that are new to investing often struggle with finding the right income stocks to buy. Fortunately, the market gives us plenty of options to consider, including some of the best dividend stocks to buy in April 2023.
Here’s a look at three of the absolute best dividend stocks to buy in April and why they belong in your portfolio.
Dividend stock #1: Canadian Imperial Bank of Commerce
It would be impossible to compile a list of the best dividend stocks to buy without mentioning at least one of Canada’s big banks. And that bank to consider, which is also one of the best dividend stocks to buy in April is Canadian Imperial Bank of Commerce (TSX:CM).
CIBC is neither the largest nor most well known of Canada’s big banks. What the bank does offer investors is a juicy dividend, massive long-term growth potential, and an intriguing time-sensitive discount.
Canada’s banks have historically fared better than their U.S. peers during times of volatility. CIBC lacks the substantial international footprint that its peers offer. Instead, CIBC has a larger (compared to its size) domestic mortgage book than those of its peers. This has made the bank appear riskier than its peers, particularly over the short term.
As a result, the stock is down considerably this year, hence that time-sensitive discount.
Adding to that appeal is the fact that CIBC underwent a stock split last year. This gives the bank a lower entry cost for new investors when compared with its peers.
And finally, we have CIBC’s dividend, which has swelled as the stock has dropped. The current yield works out to an impressive 5.98%, making it an ideal choice for long-term investors.
Dividend stock #2: Enbridge
Enbridge (TSX:ENB) is a name that should be recognizable to most Canadians. The energy infrastructure behemoth operates one of the largest natural gas utilities on the continent.
The company also boasts the largest and most complex pipeline network on the planet. In terms of sheer size and volume, those pipeline segments haul one-third of North American-produced crude and one-fifth of the natural gas needs of the U.S.
Not surprisingly, that pipeline network also generates the bulk of Enbridge’s revenue. That being said, that’s not all Enbridge does.
The company also operates a growing renewable energy business, which includes over 40 facilities located across Europe and North America. Given the growing importance of renewable energy, the renewable energy segment promises strong long-term growth.
Turning to income, Enbridge offers investors one of the highest yields on the market. The company’s quarterly dividend currently carries a yield of 6.78%. Additionally, Enbridge has provided an annual or better uptick to that dividend for over 30 consecutive years.
That factor alone makes Enbridge one of the best dividend stocks to buy in April right now.
Dividend stock #3: BCE
BCE (TSX:BCE) rounds out the trio of best dividend stocks to buy in April. BCE is one of Canada’s big telecoms and boasts a massive network that blankets the country in coverage.
In addition to its core subscription-based services, BCE also operates a massive media network that encompasses dozens of radio and TV stations. The media segment also provides an additional revenue stream for the company that is complementary to its core business.
Telecoms like BCE are incredibly defensive stocks. In fact, since the pandemic began, the defensive appeal of telecoms has grown in importance. That’s because a fast and stable data connection has become a necessity for students and workers still in a remote capacity.
As an income investment, BCE has offered dividends to investors for well over a century. Today, that yield works out to an impressive 6.12%, making it one of the better-paying investments on the market.
If that’s not enough, BCE has also provided generous annual bumps to that dividend for more than a decade.
The best dividend stocks to buy in April
No stock is without risk, and that includes the best dividend stocks to buy in April mentioned above. Fortunately, the trio of stocks above provide defensive appeal in addition to the juicy yields they offer.
In my opinion, one or all of the above stocks should be core holdings as part of a larger, well-diversified portfolio.