Canadian investors are hopefully moving on and are now looking ahead. The future could look quite bright — especially for investors considering dividend stocks right now. Yet be aware: you need to look for more than a high dividend yield for passive income.
Today, we’re going to look at three dividend stocks to double up on right now. These are companies that offer stable futures based on company performance and the sectors as a whole. So, let’s get into it.
Consumer staples
Companies that sell essential products like food and household goods have a consistent history of strong earnings as well as paying reliable dividends. So, these are seen as less volatile than other sectors during economic downturns.
One to consider in this case is North West Company (TSX: NWC). This Canadian company operates grocery stores in remote and northern regions of Canada. It also has a long history of increasing its dividend payout, with a yield currently at 3.93% as of writing.
The company looks to be well-valued with strong growth potential according to analysts. It already operates across Canada and has been expanding into Alaska as well as the Caribbean and Pacific. It now operates over 230 stores, and shares are up 12.25% in the last year as of writing. So, with a strong dividend and growth potential, it’s one to potentially double up on right now.
Utilities
Utility companies offering electric, gas, and water are also strong dividend stocks to consider right now. This comes from their stable cash flows; utilities are known for predictably paying dividends from long-term contracts. The businesses are also usually less affected by economic swings.
In this case, Emera (TSX: EMA) looks like a strong option. The company is an investor-owned utility stock providing utility services in Canada, United States, and the Caribbean. It has a solid history of dividend increases, with a current yield at 5.88% as of writing.
Its diversified portfolio and focus on regulated assets provide a safe investment for investors. Revenue comes from regulated services, and that means stable cash flow as well. Furthermore, it has a strong record of operational excellence and delivering value to shareholders. So, while shares might be down, it could be time to hop back in as the company recovers.
Healthcare
Finally, healthcare companies can be strong providers of stable cash flows, but not all of them. Major pharmaceutical companies and healthcare providers are usually where investors should look. These provide more stable cash flow as well as growth in dividends. Plus, they can be a strong long-term purchase with an aging population.
A company investors may want to consider in this case is Manulife Financial (TSX: MFC). MFC stock is the leading North American insurance and financial services company. It holds a strong presence both in Canada and Asia, offering a variety of financial services and products. These include asset management as well as insurance.
The company is a lower-risk option within healthcare thanks to its diversified business model. What’s more, shares and dividends have been quite strong. Investors can grab a dividend yield at 4.96%, with shares up 30% in the last year and climbing!
