If you’re a Canadian investor looking for dividends, I can’t say I blame you. The TSX today still isn’t performing the best. Therefore, trying to supplement low returns with passive income certainly makes some sense.
But investors still want to invest in companies that have at least some growth ahead or some growth behind them. What if I could tell you that you could get both growth and dividends right now?
In the case of these three dividend stocks, you certainly can.
Brookfield Renewable Partners (TSX:BEP.UN) is up 16% year to date as of writing, making it a solid growth stock in 2023 at least. That being said, shares are still down 9% in the last year, so investors can still get a deal on this among other dividend stocks.
As for the dividend it currently sits at a strong 4.4%, so you’re certainly able to bring in some solid dividends and get them at a great price while shares remain down. Yet this growth stock is also a strong long-term buy as well.
Renewable energy continues to grow, with an incredible amount of investment going into the industry, both private and publicly. Brookfield stock has been doing this since the 1890s (though this spinoff is more recent). It’s now invested in every type of renewable energy type all around the world. So, look forward to more growth and dividends while you wait.
Fairfax Financial Holdings (TSX:FFH) is another of the top choices in terms of growth and dividends. It’s also incredibly stable with shares up 41% in the last year and 20% year to date. This comes from a stable growth strategy both organically and through acquisitions that’s been going on for decades.
Fairfax stock is expensive, of course, but it can afford to be. You get stability for that share price, stability that has been going on for years now. This is from investing in the casualty and property insurance industry as well as asset management.
The high cost you pay for stability will also bring in a 1.38% dividend yield as of writing, which adds up when shares trade at $983. Even so, the stock remains valuable while trading at 10.3 times earnings as of writing.
Finally, Great-West Lifeco (TSX:GWO) is another insurance company — similar to Fairfax stock but with more affordable share price. Great-West stock is now up about 14% in the last year and 22% year to date. This comes from stable growth in the insurance and asset management sector, even with the market as it is.
Great-West stock continues to grow by expanding to new areas as well as acquiring more companies under its large umbrella. It now operates on a global scale, including North America, Europe, and Asia. Yet again, with all this growth, the stock remains valuable.
Shares of Great-West stock are now trading at 14.59 times earnings, putting it in value territory. It also offers a 5.4% dividend yield to consider. So, this is another dividend stock that should offer growth in and out of 2023.