Investing in dividend stocks offers a tonne of benefits for investors, which is why they are some of the most popular investments among Canadians. In fact, with many stocks still trading off their highs and interest rates still at elevated levels, now is an excellent time to buy some of the top no-brainer dividend stocks while they are so cheap.
Although older investors and others with a lower risk tolerance will certainly prefer low-risk dividend stocks, this doesn’t mean that younger investors with a more growth-focused strategy can’t buy high-quality dividend stocks, too.
Not only do these companies provide a return right away through the dividend and long-term capital gains potential, but when you buy a high-quality stock that’s constantly increasing the dividend it pays each year, the long-term gains you earn can be enormous.
In addition, dividend stocks are also ideal due to their reliability and track record of profitability and success. For example, for a company to even pay a dividend in the first place, let alone increase it each year, it needs to consistently earn a profit.
So, with that in mind, if you’re looking for top Canadian dividend stocks to buy right now, here are three impressive stocks that all trade for less than $200.
One of the best dividend stocks Canadian investors can buy
There’s no question that one of the best dividend stocks to buy and hold for the long haul is Brookfield Infrastructure Partners (TSX: BIP.UN).
Brookfield’s combination of growth and defence makes it a highly compelling investment. Not only does it own plenty of essential infrastructure assets, such as railroads, telecom towers, pipelines, and much more, and these assets are diversified all over the world, but Brookfield is also constantly recycling capital and reinvesting in long-term growth.
This allows the stock to constantly grow its free cash flow generation and consequently increase the distribution it pays to investors. Currently, Brookfield targets annual increases to its dividend of 5% to 9%. Plus, today, that distribution has a yield of roughly 5.5%.
So, while Brookfield trades off its highs and offers a higher-than-average yield, the Canadian dividend stock is certainly a no-brainer buy right now.
One of the best dividend growth stocks in Canada
In addition to Brookfield, another no-brainer dividend stock to buy right now is Fortis (TSX: FTS), the ultra-popular utility stock.
Fortis is easily one of the best dividend growth stocks on the TSX. In fact, it has the second-longest dividend growth streak in Canada, with 50 straight years of annual dividend increases. That alone shows what a high-quality and reliable dividend stock Fortis is.
Because it’s a utility stock, it’s highly recession-resistant. Not to mention, much of its growth in revenue, free cash flow, and earnings is highly predictable. For example, over the next five years, it expects to grow between 4% and 6% annually.
Therefore, while this high-quality and reliable dividend stock trades off its highs in the current high-interest rate environment and offers a yield of roughly 4.5%, much higher than its five- and 10-year averages of 3.8%, it’s certainly a no-brainer buy today.
A top high-yield retail REIT
Finally, many real estate investment trusts (REITs) make excellent dividend stocks due to the significant and consistent cash flow they generate. However, when you consider its significant yield as well as its reliability, it’s clear CT REIT (TSX: CRT.UN) is one of the best dividend stocks in the real estate sector to buy right now.
Not only is CT REIT extremely reliable and a company that has never experienced a single year where its revenue didn’t increase, but it, too, is trading off its highs in this environment, making it a no-brainer investment.
In fact, CT REIT now offers a dividend yield of roughly 6.5%, which is a lot higher than its five-year average forward dividend yield of 5.4%.
Plus, on top of its compelling dividend yield and the fact that CT REIT is also increasing its distribution each year, the stock also has plenty of organic growth potential, which should lead to more capital gains potential for investors, even after the stock price has recovered from its current dip.
So, if you’re looking for top dividend stocks to buy right now, CT REIT is certainly one of the first stocks I’d recommend you consider.
