These 3 Canadian Dividend Stocks Could Boost Your Portfolio

Given their solid underlying business and high dividend yields, these three Canadian stocks are an excellent addition to your portfolios.

| More on:
Dollar symbol and Canadian flag on keyboard

Image source: Getty Images

The fear that the lengthy period of high interest rates could slow down the global economy has led to volatility in the global equity markets. Given the uncertain outlook, investors can strengthen their portfolios and earn a stable passive income by adding the following three dividend stocks.


BCE (TSX:BCE) would be one of the excellent Canadian dividend stocks to have in your portfolio, given its solid underlying business, consistent dividend growth, and high yield. Amid digitization, the demand for telecommunication services is growing, benefiting BCE. Meanwhile, the company made a capital investment of $1.1 billion during the March-ending quarter to expand its 5G and broadband services.

 Amid its continued investment, the company’s management expects to expand its 5G service to cover 85% of the Canadian population while adding 650,000 new high-speed broadband connections this year. So, BCE’s growth prospects look healthy. With most of its infrastructure in place, the company’s management has stated that it would lower its capital expenditure. So, it will have more funds for distribution, thus making its payouts safer.

Meanwhile, BCE has raised its dividend by over 5% annually over the previous 15 years, with its forward yield standing at 6% as of the May 11th closing price. Its valuation also looks attractive, with its NTM (next 12-month) price-to-earnings multiple at 19.9. 

TC Energy

TC Energy (TSX:ENB) operates a regulated energy transportation business, with around 95% of its adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) underpinned by rate-regulated assets or take-or-pay, long-term contracts. Meanwhile, it reported a solid first-quarter performance last month, with its adjusted EBITDA growing by 16%. Strong utilization rate amid higher demand and the development of new projects over the last 12 months drove its financials.

Having put around $1.4 billion of projects into service in the first quarter, TC Energy is on track to put around $6 billion of projects into service this year. It is also working on divesting $5 billion worth of assets, which could strengthen its balance sheet. So, the company, which has raised its dividend for the last 23 years, could continue its dividend growth. Meanwhile, it currently offers an impressive dividend yield of 6.66%, making it an excellent buy.

Bank of Nova Scotia

Amid the weakness in the banking industry due to rising interest rates and contagion risk in the United States, Bank of Nova Scotia (TSX:BNS) has lost around 22% of its stock value compared to its 52-week high. However, the steep pullback has provided excellent buying opportunities for long-term investors.

Despite the challenging environment, the company witnessed margin expansion and strong asset and deposit growth in Canada and international markets during the January-ending quarter. Further, given its diversifier portfolio, solid balance sheet, and substantial exposure to high-growth markets, BNS is well positioned to ride out this downturn.

Notably, BNS has rewarded its shareholders by paying dividends since 1833. It has raised its dividend at a compound annual growth rate of over 6% since 2010 while offering a forward dividend yield of 6.19% as of the May 11th closing price. Also, the company trades at an attractive NTM price-to-earnings multiple of 8.6, making it an attractive buy.  

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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

stock research, analyze data
Dividend Stocks

How Much to Invest to Get $500 in Dividends Every Month

TSX dividend stocks such as Enbridge, TD Bank, and Telus, can help you earn $500 in monthly dividend payments.

Read more »

Golden crown on a red velvet background
Dividend Stocks

Dividend Powerhouses: Canadian Stocks to Fuel Your Portfolio

These two top Canadian dividend aristocrats are some of the top stocks on the TSX to buy now and hold…

Read more »

Dial moving from 4G to 5G
Dividend Stocks

This Undervalued Dividend Stock is Worth Buying Right Now

Want an undervalued dividend stock with long-term potential and a juicy yield? Here's an option you may regret not buying…

Read more »

A worker gives a business presentation.
Dividend Stocks

1 Stock I’m Buying Hand Over Fist in July Despite the Market’s Pessimism

This top dividend stock is going through a rough patch, but don't let that count out all the growth we've…

Read more »

person on phone leaning against outside wall with scenic view at airbnb rental property
Dividend Stocks

2 TSX Stocks Poised to Have a Big Summer

Restaurant Brands International (TSX:QSR) stock and another darling that could be too cheap to ignore this summer.

Read more »

Dividend Stocks

Forget Fortis Stock: Buy This Magnificent Utilities Stock Instead

Looking for high dividends and returns? Then I'm sorry, but Fortis (TSX:FTS) stock probably isn't for you.

Read more »

Increasing yield
Dividend Stocks

2 High-Yield (But Slightly Risky) Stocks to Keep Your Eye on

Have these top TSX dividend stocks finally bottomed?

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks I’d Buy if They Fall a Bit

Any near-term decline in these two top Canadian dividend stocks will make them look even more attractive.

Read more »