There’s a reason why high-quality dividend stocks are some of the most popular investments that Canadians can make.
The main point of investing is to buy companies that you believe can continue to grow in value for years, increasing the value of the investment. When you buy dividend stocks, though, not only do you have the potential to see your investment gain value, but you can also earn attractive passive income, which has several benefits.
First off, earning passive income helps to lower the risk of the investment. With stocks that don’t pay a dividend, management reinvests the profits into growing the business. That can be beneficial, but it’s also riskier if those investments don’t pay off.
However, when you receive dividend payments, you’re earning some of those returns upfront, allowing you to choose how to reinvest that money, whether it’s back into the same business or in a different stock altogether.
Therefore, finding high-quality Canadian dividend stocks that can grow in value while also returning you passive income allows your hard-earned money to work even harder.
So if you’re looking for some of the best Canadian dividend stocks to add to your portfolio, here are two top companies to consider today.
A top Canadian REIT
Some of the best dividend stocks that Canadian investors can buy are those in the real estate sector, such as CT REIT (TSX:CRT.UN).
Real estate businesses are excellent dividend stocks because they are highly defensive and constantly generate tonnes of cash flow, which gets paid right back to investors. And CT REIT, specifically, is a top dividend stock to buy because its majority owner is Canadian Tire, in addition to the massive retailer being its largest tenant and accounting for roughly 90% of its revenue.
Therefore, because Canadian Tire is such a well-known and high-quality retail business, CT REIT’s proven to be a highly reliable dividend stock. It managed to weather the pandemic extremely well when many other retail REITs struggled with impacts on their operations.
Furthermore, CT REIT is a Canadian dividend aristocrat, and the stock has increased its dividend for 10 consecutive years now.
Therefore, it’s one of the top Canadian dividend stocks to buy that can earn you both capital gains and attractive passive income. In fact, with the REIT trading at roughly $15 a share today, it offers investors a yield of more than 5.75%.
One of the best Canadian dividend stocks
Another high-quality dividend stock that can make your money work harder is Enbridge (TSX:ENB), the massive $100 billion energy infrastructure stock.
Enbridge is another high-quality Canadian dividend stock due to the fact that it’s a cash cow and constantly generating billions in cash flow. This allows the stock to consistently increase the dividend each year while still having billions in capital to invest in growing the business.
In fact, Enbridge has increased its dividend for 27 consecutive years now. Today, it offers investors an unbelievable yield of more than 7.1%.
This lengthy dividend streak is not surprising, considering Enbridge has well-diversified operations and is crucial to the North American economy.
Not only does it transport roughly 30% of the crude oil produced in North America, but it also transports 20% of the natural gas consumed in the U.S. On top of that, it owns a massive utility business and has a rapidly growing renewable energy segment.
Therefore, given Enbridge’s impressive and highly defensive operations, it’s certainly one of the top Canadian dividend stocks to buy now and hold for years. So if you’re looking for a stock that can make your hard-earned money work even harder, Enbridge is one of the best to consider today.
