If you’re interested in building a source of passive income, dividend stocks offer you an opportunity to do so. Fortunately, the Canadian stock market features many outstanding dividend companies for investors to choose from. In this article, I’ll discuss four top Canadian dividend stocks that investors should hold today. These stocks would also make great additions to a retirement portfolio.
Start with one of the best dividend stocks around
When it comes to Canadian dividend stocks, very few companies are able to stand alongside Fortis (TSX:FTS). For those that are unfamiliar, this company provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean.
Fortis is listed as a Canadian Dividend Aristocrat. That means the company has managed to increase its dividend distribution for at least five consecutive years. However, a quick look into this company’s history would reveal just how impressive it actually is. Fortis has raised its dividend-growth streak in each of the past 49 years. The company has already announced its plans to continue raising its dividend through to 2027 at a rate of 4-6%.
A reliable company for your portfolio
Canadian National Railway (TSX:CNR) is another stock that dividend investors should pay attention to today. This name should be very familiar to Canadians, as the company operates 33,000 kilometres of track that spans from British Columbia to Nova Scotia.
As far as Canadian Dividend Aristocrats go, Canadian National stands among the best. The company has increased its distribution in each of the past 26 years. Over that period, Canadian National’s dividend has exhibited a compound annual growth rate (CAGR) of just under 16%. That’s a very important number to take note of, as it suggests that the company does an excellent job of keeping its investors ahead of inflation. An inability to do so would result in a loss of buying power over time.
This stock has been paying investors for nearly 200 years
Investors should also consider companies that operate within Canada’s banking industry. That space features many outstanding dividend stocks, many of which have been paying shareholders for more than a century. Bank of Nova Scotia (TSX:BNS) stands out in my opinion for its outstanding dividend history.
The company first distributed a dividend on July 1, 1833. Since then, Bank of Nova Scotia has never missed a dividend payment. That represents nearly 190 years of continued dividend distributions. As of this writing, Bank of Nova Scotia stock offers investors a forward dividend yield of 6.25%. That represents outstanding bang for your buck today.
Another great stock to buy today
Finally, investors should consider buying shares in Brookfield Renewable (TSX:BEP.UN). As its name suggests, this company operates within the renewable utilities industry. It ranks as one of the largest producers of renewable utilities in the world, with a diversified portfolio of assets with a generation capacity of 25 gigawatts (GW). Brookfield Renewable’s development pipeline could add another 110 GW of generation capacity.
Like other stocks mentioned in this article, Brookfield Renewable is listed as a Canadian Dividend Aristocrat. The company has increased its dividend distribution in each of the past 11 years. It should be noted that throughout that 11-year dividend-growth streak, Brookfield’s dividend has grown at a CAGR of 6%. That helps investors stay ahead of inflation.
