Preparing for retirement can be a daunting task. However, you can get started today by investing in solid dividend stocks. If you continue to accumulate shares of outstanding dividend stocks, over time, your portfolio could be a great source of passive income. That, on its own, or in addition to other sources of income (e.g., pension), could help you retire very comfortably. In this article, I’ll discuss three top Canadian dividend stocks worth buying today.
This is one of the best dividend stocks in Canada
Fortis (TSX: FTS) is the first stock I think of when I think about Canadian dividend stocks. In my opinion, this is one of the best dividend stocks to hold over the long term. Fortis, if you don’t know, provides regulated gas and electric utilities. It serves more than three million customers in Canada, the United States, and the Caribbean. Fortis, and other utility companies, usually operate following a recurring revenue model. That allows them to take advantage of a very stable and steady revenue stream.
Fortis has turned that advantage into a 49-year dividend-growth streak. As of this writing, Fortis holds the second-longest active dividend-growth streak in Canada. The company has already announced its plans to continue growing its dividend at a rate of 4-6% through to at least 2027. Fortis also offers investors a forward dividend yield of 3.97%, giving you great bang for your buck.
Invest in one of the Big Five banks
The Canadian banks would be another great place to shop for dividend stocks. These companies, especially the ones at the top, tend to be flush with cash and have a long history of dividend distributions to back them up. Of the Big Five, Bank of Nova Scotia (TSX: BNS) stands as one of my favourite picks.
This company has been paying shareholders a dividend since July 1, 1833, and hasn’t missed a payment since. That represents 190 years of continued dividend payments. In addition, Bank of Nova Scotia currently offers investors a very attractive dividend yield of 6.63%. If you’re looking for a stock that could provide a reliable source of passive income while giving you great value, then Bank of Nova Scotia could be the pick for you.
Choose this top Canadian company
Finally, Canadians interested in preparing for retirement should consider buying shares of Canadian National Railway (TSX: CNR). This company operates a rail network that spans from British Columbia to Nova Scotia. Canadian National also operates in the United States as far south as Louisiana. All considered, Canadian National’s rail network totals nearly 33,000 kilometres of track.
Another outstanding dividend stock, Canadian National has been increasing its distribution since 1996. That means that the company is in its 27th year of dividend growth. Only 10 other TSX-listed stocks currently match or surpass that growth streak. Although Canadian National’s dividend yield is quite lower than the other two stocks mentioned in this article (2.06%), I believe the stock’s reliability is more than enough to make up for that.
