Investors all over the world enjoy the benefits of investing in dividend stocks. However, in Canada, dividend investing seems like a more popular strategy among investors — especially when compared to the proportion of investors that solely invest in growth stocks. This affinity towards dividend stocks is one reason why our Dividend Investor service is one of our most popular here at the Motley Fool. In this article, I’ll discuss three great dividend stocks that you should consider buying today.
One of the best dividend stocks around
When thinking of Canadian dividend stocks, Fortis (TSX:FTS) should be one of the first names that comes to mind. This company provides regulated gas and electric utilities to more than three million customers in Canada, the United States, and the Caribbean. Although utility companies aren’t the most exciting to hold in your portfolio, you should appreciate the fact that they tend to be very stable and reliable companies. Regardless of what the economy looks like, their services will continue to be relied upon.
A bona fide Canadian Dividend Aristocrat, Fortis currently holds the second-longest active dividend growth streak in Canada (50 years). Fortis has already declared its intentions to continue raising its distribution through to 2028 at a rate of 4-6%. Today, investors can take advantage of a 4.37% forward dividend yield.
A very long history of paying shareholders
Although it’s great if a stock can raise its dividend each year, the truth is, not every company will be able to do that. Because of that, it could be worthwhile to consider investing in stocks that have shown a great ability to distribute some sort of dividend for a long period. Take Bank of Nova Scotia (TSX:BNS) for example. This is one of the Big Five Canadian banks. It’s one of the largest banks in terms of assets under management, revenue, and market cap.
Bank of Nova Scotia has been paying shareholders a dividend since July 1, 1833. Since then, it has never missed a dividend payment. That represents 190 years of continued dividend distributions. In my opinion, that’s such a remarkable feat considering how many periods of economic uncertainty have occurred over that period. Bank of Nova Scotia stock currently offers investors a forward dividend yield of 6.70%.
This dividend stock deserves more attention
Finally, investors should consider buying shares of Alimentation Couche-Tard (TSX:ATD). This is a stock that I haven’t bought shares of yet, but don’t be surprised if it ends up in my portfolio soon. In my opinion, this is a very underappreciated company. Alimentation Couche-Tard operates more than 14,000 convenience stores across 25 countries and territories.
Alimentation Couche-Tard stock has quietly become a very solid dividend stock. Although its forward dividend yield is still quite low (0.78%), so is its dividend-payout ratio. At a ratio of about 13.3%, Alimentation Couche-Tard still has a lot of room to grow its dividend. Speaking of which, that dividend has grown at a very spectacular rate over the past 10 years. Since 2013, Alimentation Couche-Tard’s dividend has risen by 10X (or a compound annual growth rate of 27%).
