A selection of top Canadian dividend stocks is a must-have for any well-rounded portfolio. Fortunately, the market provides plenty of dividend stocks for both seasoned and new investors to consider.
Here’s a look at a handful of those must-have income producers to help you prepare for retirement.
Telus can provide a juicy growing income
Canada’s telecoms are some of the best long-term investments to consider in nearly any market. And it’s no secret among investors that Telus (TSX:T) remains one of the top Canadian dividend stocks to buy.
As an income producer, Telus is impressive. The telecom has provided semi-annual bumps to its quarterly dividend for well over a decade. Annual increases to that payout extend a decade further, bringing the telecom to over two decades of annual or better increases without fail.
Today, that dividend works out to an impressive 5.67%, making it one of the better-paying options on the market. By extension, it also means that investors with $30,000 to invest (as part of a larger well-diversified portfolio), can expect to generate an income of $1,700 in the first year.
Factor in expected increases, and you have one of the top Canadian dividend stocks to buy now and hold for decades.
Oh, and perhaps best of all, Telus can be picked up now for a decent discount. As of the time of writing, Telus trades down over 14% over the trailing 12-month period.
If you want a defensive anchor, this is your stock
Canada’s telecoms are great defensive stocks to consider, but there’s another segment that offers even more defensive appeal: utilities.
Fortis (TSX:FTS) is one of the largest utilities in North America with 10 operating regions across the U.S., Canada, and the Caribbean. Utilities are great defensive options owing to their stable if not lucrative business models.
In short, utilities are bound by long-term regulated contracts, which provide a recurring and stable revenue stream. And in the case of Fortis, that revenue stream allows the company to pay out a very generous quarterly dividend.
As of the time of writing, Fortis’s dividend works out to a respectable 3.98% yield. Even better, prospective investors should note that Fortis has provided annual bumps to that dividend for an incredible 49 years without fail.
That company also plans to continue that annual cadence, with increases of up to 6% planned over the next several years.
That fact alone makes Fortis one of the top Canadian dividend stocks to add to your portfolio today and forget about for a decade or more.
Banking on a steady income for years
It would be nearly impossible to compile a list of the top Canadian dividend stocks to buy without considering at least one of Canada’s big banks.
And that big bank for investors to consider right now is Bank of Montreal (TSX:BMO). Bank of Montreal has been paying out dividends for nearly two centuries — longer than any other company in Canada.
BMO also boasts a stable domestic segment along with a growing international segment that is focused on the U.S. market. In fact, BMO completed the acquisition of U.S.-based Bank of the West earlier this year.
That deal propelled BMO into position as one of the largest banks in the U.S. market. It also means that BMO’s presence in the U.S. now extends to 32 states. The acquisition also added hundreds of branches to BMO’s U.S. network, as well as 1.8 million new customers.
Turning back to that dividend, today BMO offers a juicy quarterly dividend that carries a yield of 4.96%.
You can buy top Canadian dividend stocks today
No investment, even the most defensive, is without some risk, and that extends to the three top dividend stocks mentioned above. Fortunately, the trio of stocks noted here are mature leaders in their respective fields and also offer some defensive appeal.
In my opinion, one or all of the above dividend stocks should be part of a larger, well-diversified portfolio.
