If you’ve read any of my previous Motley Fool articles, there’s a good chance that you’ll have come across me talking about Shopify (TSX:SHOP) stock. For those that haven’t, know that I am a very big fan of Shopify stock. I believe the company holds a very strong leadership position in its industry and that it could grow much larger over the next decade.
However, with that said, there are some stocks out there that I can see myself buying ahead of Shopify stock. In this article, I’ll discuss three solid dividend all-stars that I’d buy today. I believe that all investors could benefit from holding dividend stocks in their portfolio. Without further ado, here are three stocks I’d buy over Shopify.
This is one of the best dividend stocks in the country
When it comes to Canadian dividend stocks, Fortis (TSX:FTS) is always one of the first names that comes to mind. I believe that’s for good reason. A massive utility company, Fortis provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean.
If you pay rent or own your own home, you’ll know that utility bills tend to be a monthly expense. That recurring stream of revenue provides Fortis with a very stable and predictable source of income. Using that income stream, Fortis is able to plan for dividends and dividend raises much ahead of time. Currently, the company holds a 49-year dividend-growth streak. It has already announced its plans to continue raising its dividend at a rate of 4-6% through to 2027.
This company plays a vital role in Canada’s economy
Canadian National Railway (TSX:CNR) is another stock that I believe all investors should consider holding in their portfolios. This should be one of the most recognizable names in the country, since Canadian National operates nearly 33,000 km of track. Its rail network spans from British Columbia to Nova Scotia and even goes as far south as Louisiana.
Looking at its dividend, investors should note that Canadian National has managed to increase its distribution in each of the past 26 years. Over that period, its dividend has grown at a compound annual growth rate of more than 12%. For comparison, the long-term annual inflation rate is about 2%. That means investors have been able to stay ahead of inflation by holding shares of Canadian National Railway.
A company that offers essential products
Finally, investors should consider buying shares of Metro (TSX:MRU) stock. With 975 food locations, this is one of the largest grocers in Canada. It should be noted that Metro also operates more than 600 pharmacy locations, which increases its reach and presence within the retail industry. The reason I think this company is very appealing is because groceries and pharmaceuticals are very essential for the everyday person. Therefore, Metro’s business shouldn’t be too affected by economic downturns.
Like Canadian National Railway, Metro has managed to increase its dividend in each of the past 26 years. Because of this company’s dominance within the Canadian grocery industry, I’m confident it could continue to raise that dividend for years to come.
