3 Dividend Stocks Every Canadian Should Own in November 2023

These dividend stocks are great buys on the market today, especially as we get closer and closer to entering bull market territory.

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Dividend stocks remain some of the most popular options on the TSX today. It’s clear why. These stocks provide investors with income even while we continue to be in this bear market.

Yet there’s more to dividend stocks than just their passive income through yields. Investors should look at long-term returns as well to make sure they’re choosing stocks that can make a comeback when a bear market ends. Because when it does, a bull market should send stocks soaring upwards.

In this case, here are three of the top dividend stocks I would consider.

Fortis

Utility stocks are some of the best options during a downturn. They provide you with defence against the falling market, as utilities will remain essential no matter what happens. Furthermore, they rely on long-term contracts that can last decades.

Because of this, companies such as Fortis (TSX:FTS) use the revenue to acquire further businesses, expand operations, and invest in the dividend. This dividend stock in particular is especially privileged, however. Fortis stock is now one of only two Dividend Kings on the TSX today. That means it’s increased its dividend for the last 50 years.

So, if you want a sure thing when it comes to dividend growth, Fortis stock is one to consider. Shares are up a modest 5% in the last year, while it trades at a reasonable 18.2 times earnings. Further, it has a dividend yield of 4.2%, far above its five-year average of 3.64%.

Dollarama

Another of the dividend stocks to consider, especially if you’re looking for defensive stocks, is Dollarama (TSX:DOL). Dollarama stock remains a strong choice during this time of higher interest rates and inflation. We’re all looking at ways to save money, and Dollarama stock offers that. It holds many brand names we’ve come to know but at a discounted price.

What’s more, the company has been expanding in several ways. It’s been opening new locations across the company. The stock has expanded its brands to provide even more recognizable names. And it’s expanded into Latin America with the acquisition of Dollar City.

Dollarama stock has grown 27% in the last year, providing huge growth in that time — growth that has remained stable for the last decade. While its 0.27% dividend yield certainly isn’t high, you’ll be sure to get even more passive income when combining it with returns.

goeasy

Another of the top dividend stocks I would certainly consider this November is goeasy (TSX:GSY). goeasy stock has grown substantially since coming on the scene in the 1990s. The company started by loaning out furniture and appliances. It still does, but it has expanded into other loans as well.

Those loans have provided record revenue and returns quarter after quarter. Even with the government’s rate cap set to take place in July 2024, the company believes this will create more business rather than less. Meanwhile, those seeking a deal on interest rates have been flocking to goeasy stock.

So, with shares trading at 10.53 times earnings, and down just 2% in the last year, it’s a great time to consider the stock — especially as goeasy stock offers a 3% dividend yield that remains higher than its five-year average at 2.34%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in Goeasy. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

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