3 Top Dividend Stocks to Buy Hand Over Fist

Are you looking for dividend stocks to buy today? Here are my three top picks!

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Investing in dividend stocks is a great way for investors to build wealth. That’s because dividend stocks tend to be much less volatile than their growth counterparts. Because of this, it may be easier for investors to allow these investments to continue running and compounding during times of economic uncertainty or downturns. In this article, I’ll discuss three top dividends that investors should be buying hand over fist.

One of the best dividend stocks around

When it comes to dividend stocks, Fortis (TSX:FTS) is a company that all investor should be very familiar with. In my opinion, this is one of Canada’s most impressive dividend stocks. However, before we dive into its dividend performance, for those who aren’t yet familiar with this company, know that it provides regulated gas and electric utilities to more than three million customers. It operates in Canada, the United States, and the Caribbean.

Back to its dividend, Fortis is listed as a Canadian Dividend Aristocrat. In order to make that list, companies need to increase their dividend distributions for at least five consecutive years. However, Fortis crushes that growth requirement out of the park. This company has raised its distributions in each of the past 50 years. It plans to continue doing so through to at least 2028.

A stock that has been paying shareholders for a very long time

Another thing to consider when looking for dividend stocks is how long they’ve been able to pay shareholders. Take Bank of Nova Scotia (TSX:BNS) as an example of this. Bank of Nova Scotia is a company that needs little introduction. It’s one of Canada’s largest banks in terms of assets under management, market capitalization, and revenue.

Bank of Nova Scotia first paid shareholders a dividend on July 1, 1833. Since then, the company has never missed a dividend payment. That means Bank of Nova Scotia is coming up to 191 consecutive years of dividend distributions. To put that into perspective, consider how many periods of economic uncertainty have occurred over that period. Bank of Nova Scotia has shown an ability to intelligently allocate capital in order to ensure a reliable distribution to shareholders.

An underrated dividend stock

Finally, investors should consider buying shares of Alimentation Couche-Tard (TSX:ATD). For many Canadians outside of Quebec, you may not be very familiar with that name. You should know that this company operates convenience stores. It also operates under several different banners, including Mac’s, Circle K, On the Run, and many more. All considered, Alimentation Couche-Tard operates about 16,700 locations across 29 countries.

According to Alimentation Couche-Tard’s most recent earnings presentation, the company has increased its dividend about 10-fold over the past 11 years. That amounts to a compound annual growth rate of about 27%. Despite that outstanding growth, Alimentation Couche-Tard’s payout ratio is still only 14.55%. That suggests that the company could continue to comfortably increase its dividend at a steady rate for years to come.

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 has positions in and recommends Alimentation Couche-Tard. The Motley Fool recommends Bank Of Nova Scotia and Fortis. The Motley Fool has a disclosure policy.

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