The S&P/TSX Composite Index was down 168 points in early morning trading on Tuesday, June 20. Some of the worst-performing sectors included base metals, energy, and financials. Investors who are looking to dodge further volatility to start the summer of 2023 should look to dependable dividend stocks. Today, I want to look at two top dividend stocks that have proven to be elite in terms of reliability on the TSX. Let’s dive in.
This dividend stock owns the only crown on the TSX
Canadian Utilities (TSX: CU) is a Calgary-based company that is engaged in the electricity, natural gas, and retail energy businesses in the United States, Australia, and around the world. Shares of this dividend stock have dropped 4.9% month over month at the time of this writing. That has pushed the stock into negative territory so far in 2023.
This company released its first-quarter (Q1) fiscal 2023 earnings on April 27. Like its peers in the utility space, Canadian Utilities has pursued a capital plan that aims to expand its rate base and support further dividend growth. Adjusted earnings fell to $217 million in Q1 2023 compared to $219 million in Q1 fiscal 2022. Meanwhile, earnings attributable to equity owners of Canadian Utilities rose to $292 million compared to $227 million in the prior year.
A Dividend King is a stock that has achieved at least 50 consecutive years of dividend growth. Canadian Utilities has posted 51 straight years of dividend increases at the time of this writing. This dividend stock is the first and, so far, only Dividend King on the TSX. Its shares possess a favourable price-to-earnings (P/E) ratio of 15. Moreover, it offers a quarterly dividend of $0.449 per share. That represents a strong 5.1% yield.
Here’s a super dividend stock that is ready to become royalty this decade
Fortis (TSX: FTS) is a St. John’s-based utility holding company. This dividend stock has dropped 2.6% month over month as of mid-morning trading no June 20. Its shares are still up 2.1% in the year-to-date period.
Investors got to see Fortis’s Q1 fiscal 2023 earnings on May 3. The company reported net earnings of $437 million, or $0.90 per common share — up from $350 million, or $0.74 per common share. Meanwhile, adjusted earnings jumped to $0.91 compared to $0.78 in Q1 fiscal 2022. Its $4.3 billion annual capital plan is still on track, as it aims to grow its mid-year rate base from $34.1 billion in 2022 to $46.1 billion by 2027. That would represent a compound annual growth rate of 6.2%.
Shares of Fortis last had a favourable P/E ratio of 19. This dividend stock has achieved 49 consecutive years of dividend growth after recently hiking its quarterly payout. That means Fortis is just one more year away from seizing that coveted dividend crown. It would join Canadian Utilities in that elite company on the TSX with few equities that come close to either streak. Fortis last paid out a quarterly dividend of $0.565 per share, which represents a solid 4% yield.
