2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

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Contrary to popular belief, I don’t think dividend stocks are something that only older investors should consider. I think these stocks belong in every investor’s portfolio. That’s because of two reasons. One, dividend stocks tend to be more stable than growth stocks. That means adding them to your portfolio could lower volatility. Two, they provide investors with a reliable source of passive income.

In this article, I’ll discuss two dividend stocks you should pick up today — or double down on if you already own them!

One of the best dividend stocks in the country

When it comes to Canadian dividend stocks, investors have a wide variety of companies to choose from. Essentially, every sector has great companies that pay shareholders on a recurring basis. However, if I could only choose one sector to invest in for a dividend, it would likely be the utility sector. That’s because, as you may know, utilities tend to be paid on a monthly basis. That provides companies that operate in those areas with a very stable source of revenue.

Using that predictable source of revenue, companies can plan for dividend distributions (and raises) ahead of time. Take Fortis (TSX:FTS), for example. This company has been using its advantage of a highly predictable revenue to plan dividend raises years in advance. In fact, the company has already announced its plans to continue raising its dividend through to 2028 at a rate of 4-6%. If you’re keeping track, that would raise its dividend growth streak to 54 years.

A bona fide Canadian Dividend Aristocrat, Fortis holds the second-longest active dividend-growth streak in the country. Given its business model and historical performance, I believe this company could continue to pay shareholders for a very long time.

This stock has been paying shareholders for a very long time

Speaking of companies that have been paying shareholders for a very long time, Bank of Nova Scotia (TSX:BNS) is unmatched by nearly all Canadian companies in that regard. Before we get to its dividend, you should know that Bank of Nova Scotia is one of the Big Five Canadian banks. Because the Canadian banking industry is so highly regulated, I believe its position atop its industry should be secure for years to come.

Now, let’s take a look at its dividend. Bank of Nova Scotia has been paying shareholders a dividend since July 1, 1833. Since then, the company has never missed a payment. That represents 190 years of continued dividend distributions. If you sit for a moment and consider how many periods of economic uncertainty have occurred over that period, it’s impossible to be unimpressed.

Many people may not want to support banks by buying their stock; however, you can’t dispute their role in our economy. The Canadian banks should be around for a very long time and it only makes sense that investors take advantage of their stability.

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 Jed Lloren has positions in Bank Of Nova Scotia and Fortis. The Motley Fool recommends Bank Of Nova Scotia and Fortis. The Motley Fool has a disclosure policy.

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