Investing in the right dividend stocks early on can ensure that you generate an ample retirement income over the longer term. Even better, some dividend stocks with seriously huge payouts can accelerate that growth potential further.
Here’s a look at a duo of dividend stocks with seriously huge payouts.
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Stock #1: The big bank with a big dividend
Canada’s big banks are among the best long-term investment options on the market. They offer stable revenue streams, growing dividends, and significant growth opportunities.
With recent market volatility, it’s also worth noting another advantage: their ability to weather market pullbacks and slowdowns better than their U.S-based peers.
And that bank to consider investing right now is Canadian Imperial Bank of Commerce (TSX:CM). CIBC is not the largest of the big banks. In fact, CIBC has the smallest international footprint of its peers and compensates for that with a larger (comparative to its peers) domestic mortgage book.
That significant exposure to Canadian mortgages has weighed heavily on the stock this year, as interest rates and, by extension, mortgage rates have shot into the stratosphere. As a result, CIBC now trades down over 20% over the trailing 12-month period.
This has made the stock an intriguing long-term option to consider. More importantly, it’s made CIBC one of the dividend stocks with seriously huge payouts. Specifically, CIBC’s dividend has swelled to an impressive 5.89%, making it one of the better-paying options on the market.
If that’s not enough, prospective investors should also take note that CIBC underwent a stock split last year. And while the event itself doesn’t create value, it does lower the cost of entry for new investors with long-term timelines.
In short, CIBC is a great long-term option to buy now and hold for decades.
Stock #2: Energy, energy, energy
Enbridge (TSX:ENB) is a perfect example of a dividend stock with a seriously huge payout to consider.
For those that are unfamiliar with what the company does, Enbridge is an energy infrastructure behemoth that operates the largest and most complex pipeline network on the planet. That pipeline network comprises most of Enbridge’s earnings and hauls an immense amount of oil and natural gas each day.
As a point of reference, the pipeline hauls one-third of all North American produced crude and one-fifth of the natural gas needs of the U.S. market.
That fact alone makes Enbridge one of the most defensive investments on the market. But that’s not all that Enbridge does.
The company also operates one of the largest utilities on the continent and has a growing renewable energy arm. That renewable energy segment boasts a growing network of facilities that includes predominately wind and hydro facilities across North America and Europe.
The segment has also seen over $8 billion in investments over the past two decades and is likely to see continued investment given the increasing importance of renewable energy.
Perhaps most intriguing is Enbridge’s dividend. The current dividend works out to an insane 6.67%, handily making Enbridge one of the best-paying dividends on the market. That’s not all: Enbridge boasts an incredible 28 years of annual consecutive bumps to that dividend.
Dividend stocks with seriously huge payouts exist: Will you buy?
No stock is without risk. That’s why the importance of diversifying your portfolio is so important. In the case of the duo of stocks above, it also helps that they both boast a sizable defensive moat.
In my opinion, one or both stocks would do well as part of any well-diversified, long-term portfolio.
