5 Canadian Dividend Stocks That Every Investor Should Own

Canadian dividend stocks are known for generous yields and stable returns. Here are five stellar options to start or augment any portfolio.

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Establishing a well-diversified portfolio of income-producing stocks is something every investor should seek out. Fortunately, there’s no shortage of great Canadian dividend stocks to consider.

Here’s a look at five options to consider.

Telecoms can provide a reliable source of income

BCE (TSX:BCE) is one of the largest telecoms in Canada. Telecoms are great defensive picks for any portfolio. In fact, BCE’s nationwide coverage backed by its massive infrastructure makes it one of the most defensive picks on the market. If anything, that appeal has only grown since the pandemic started.

As an income stock, BCE has been paying out dividends for well over a century without fail. The company also has an established history of generous annual bumps to that dividend that span back over a decade.

Today that dividend works out to a generous 6.30%, which is higher than any of its big telecom peers.

The big banks offer a big dividend

Canada’s big banks are some of the best long-term options on the market. They’re also superb Canadian dividend stocks for any portfolio. Canadian Imperial Bank of Commerce is one big bank that should be considered in any portfolio.

CIBC isn’t the largest of the big banks, but it is trading at a discount to market volatility and does offer a juicy 6.01% yield.

Prospective investors should note that Canadian banks have fared better than their U.S.-based peers during prior financial crises. In other words, current volatility represents a great opportunity to buy CIBC for the longer term.

Investors should also note that CIBC has a well-established history of providing generous bumps to that dividend, making this a great buy-and-forget stock.

Renewable energy is a great long-term option

Renewable Energy stocks are some of the best long-term options on the market. They’re also great Canadian dividend stocks to invest in. TransAlta Renewables (TSX:RNW) is one such option to consider.

TransAlta has a well-diversified portfolio of over 40 facilities located across the U.S., Canada, and Australia. The company also adheres to the same lucrative business model that utilities follow. In other words, it boasts a steady and recurring revenue stream and a juicy dividend.

That dividend, which is paid out monthly, currently boasts an insane 7.38% yield, making it one of the best-paying options on the market.

Forget the mortgage. Invest here instead.

The white-hot real estate market and rising interest rates have priced out many would-be landlords. RioCan Real Estate (TSX:REI.UN) is one of Canada’s largest REITs. The company is also a unique investment option that can offer an alternative to a mortgage and monthly rent from a tenant.

RioCan operates a growing portfolio of mixed-use residential properties situated along high-traffic corridors in Canada’s major metro areas. For investors, this means that risk is significantly lower than owning a single property.

Best of all, RioCan provides a monthly distribution, just like a tenant paying rent. As of the time of writing, that distribution is a tasty 5.42%, making it one of the must-have Canadian dividend stocks to own.

Earn a recurring income for decades

Utilities are great long-term investments owing to their defensive business model. And Fortis (TSX:FTS) is the stock investors should consider for a recurring and stable income stream.

Fortis is a massive utility with operating regions across the U.S., Canada, and the Caribbean. The regulated nature of its business ensures a recurring and stable revenue stream, which Fortis uses to pay its juicy dividend and invest in growth.

As of the time of writing, that dividend works out to a juicy 3.93%, but that’s not even the best part. Fortis has provided an annual bump to that dividend for 49 consecutive years and is on track for a 50th increase later this year.

That fact makes Fortis one of the great Canadian dividend stocks to buy and hold.

Canadian dividend stocks are great long-term picks

Finding that perfect mix of Canadian dividend stocks to invest in takes time, and like all investments, there’s always some risk. Fortunately, the five stocks mentioned above all provide a handsome income and defensive appeal.

In my opinion, one or all of the above stocks are great options as part of a well-diversified portfolio.

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 Demetris Afxentiou has positions in Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

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