If you’re hoping to live a comfortable retirement, creating a source of passive income could help you do that. In my opinion, the easiest way to create that source of passive income is by investing in dividend stocks. Compared to other methods of generating passive income (e.g., real estate), dividend stocks have a very low barrier to entry.
Fortunately for Canadians, there are many outstanding dividend stocks to choose from. In this article, I’ll discuss three top dividend stocks to invest in (and double up on if you’re already invested) today.
This is one of the best dividend stocks
When discussing Canadian dividend stocks, it makes a lot of sense to include Fortis (TSX:FTS). For those who haven’t heard of this company, know that it provides regulated gas and electric utilities. It serves more than three million customers across Canada, the United States, and the Caribbean. Because of its business model, Fortis can take advantage of a very predictable and stable source of revenue.
It takes advantage of that cash flow by planning dividend raises far ahead in advance. For example, the company has already announced plans to continue raising its dividend distribution through to 2028 at a rate of 4-6%. That would bring Fortis’s dividend-growth streak to 55 years. Already a bona fide Canadian Dividend Aristocrat, Fortis continues to impress in terms of its dividend each and every year.
One of my favourite dividend stocks
Bank of Nova Scotia (TSX:BNS) is another great dividend stock for investors to double up on this month. This is a company that needs very little introduction. Bank of Nova Scotia is one of the largest banks in Canada in terms of assets under management, market capitalization, and revenue. What stands out about this company, relative to its peers, in my opinion, is its focus on international growth. I believe Bank of Nova Scotia’s international business could drive its growth over the coming years.
In terms of its dividend, Bank of Nova Scotia is very impressive. The company first began paying shareholders a dividend in 1833. Since then, the company has never missed a dividend payment. That represents 190 years of continued dividend distributions. There are very few companies in Canada that can boast that same kind of performance. If you buy shares of this stock today, you will be taking advantage of a 6.72% forward dividend yield.
Consider this company as well
Finally, investors should consider buying shares of Brookfield Asset Management (TSX:BAM). For those that aren’t aware, this is the new Brookfield Asset Management in that it focuses specifically on Brookfield’s asset management business. If you’re hoping to invest in the entirety of Brookfield’s business, then an investment in the larger holding company would be more suitable for you.
Brookfield Asset Management is an outstanding dividend stock, in my opinion. The stock has gained more than 19% over the past year. In addition, the company currently offers shareholders a forward dividend yield of 3.12%.