Experts suggest that while planning for retirement, investors should heavily focus on adding dividend stocks to their portfolios. These stocks not only serve as a regular income source but also provide long-term value appreciation. In addition, dividend-paying companies usually increase their payouts over time, thus helping mitigate the effects of inflation.
However, for this strategy to be successful, choosing the right stocks is crucial. Here are three stocks that investors can consider buying.
Top dividend stocks to buy: Enbridge
Enbridge (TSX:ENB) is one of Canada’s largest energy infrastructure companies. Notably, this organization has had a solid track record when it comes to dividend payments.
In 2013, Enbridge’s annual dividend amount was $1.13, which has increased to $3.55 in the current year. This indicates 12% compounded annual growth during the aforementioned period, denoting long-term dividend growth.
Now, there are certain factors that can help the company continue its superb performance. As per recent reports, Enbridge has made a substantial reduction in its Mainline System shipping rates. Company sources state that there has been a 12% decrease, taking the price down to US$28.80/cm.
This move will increase this pipeline’s capacity by three times and connect Alberta’s oil sands to Asian markets. In the long run, this price reduction will help Enbridge significantly scale its operations.
SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is one of Canada’s biggest fully integrated real estate investment trusts (REITs). It has income-generating assets worth US$11.7 billion across 185 strategic locations. One of the biggest reasons why investors can stock up on its shares is because this company provides a monthly dividend.
For May 2023, SmartCentres REIT has declared a dividend payout worth $0.15, which will be disbursed on June 15, 2023. It will be available to shareholders on the company’s records on May 30, 2023.
Furthermore, SmartCentres REIT has released its financial performance report for the first quarter (Q1) of 2023 in early May. The company reported a 4.3% increase in its net operating income in comparison to Q1 2022. That’s meaningful, considering how the real estate market has performed over the past year.
Additionally, its funds from operations per unit also appreciated to US$0.54 from last year’s same quarter’s US$0.51. The net rental income also grew by 3.4%, with figures reaching US$4.1 million. These rising figures prove the company’s improving financial condition, which can help it achieve long-term growth.
Telus
Telus (TSX:T) is a Canada-based telecommunications provider. For the ongoing quarter, this company has announced a dividend payment of $0.36. It will be payable on July 4 to shareholders on record as of June 8, 2023.
Indeed, Telus has had a solid dividend payment track record. Over the last 10 years, the company’s annual dividend payments have increased from $0.61 in 2013 to $1.45 in the current year, showing a compound annual growth rate of 9.1%.
Additionally, institutional investors own almost 55% of the company’s shares. Now, this is good news for investors as such investors only invest in companies that have a strong growth potential in the long term.
Bottom line
Given the strong financials of all three companies, there is a high chance that they will continue providing high dividend payments in the long run. Thus, investors can consider adding these stocks to their retirement portfolios and expect to spend their golden years worry free.
