The Smartest Canadian Dividend Stocks to Buy With $500 Right Now

Besides their years-long dividend-growth track record, the strong fundamentals of these Canadian dividend stocks make them really attractive to buy right now.

| More on:

Canadian stocks are trading on a strong note in 2024 as investors continue to speculate about the timing of upcoming potential interest rate cuts in the near term. While the Bank of Canada and the U.S. Federal Reserve at the end of 2023 hinted towards multiple rate cuts in the near term, persistent inflationary pressures have cast a shadow of doubt over the possibility of such policy actions in the next few months.

This is one of the key reasons why many investors seem confused right now about whether to invest in growth or value stocks amid the uncertain economic outlook. However, one of the best ways to hedge against this uncertainty could be to invest in some safe Canadian dividend stocks that usually offer stable and growing income regardless of the market conditions. Here are two of the smartest Canadian dividend stocks you can buy right now with a modest investment of just $500.

Manulife Financial stock

Manulife Financial (TSX:MFC) has been one of the most consistent performers on the Toronto Stock Exchange in the last four years. After ending the previous three years in the green territory, the shares of this Toronto-headquartered global financial services giant have already gone up by more than 22% so far in 2024 to currently trade at $35.79 per share with a market cap of $64.3 billion. MFC distributes its dividend payouts every quarter and offers a decent 4.4% annualized dividend yield at the current market price.

In the first quarter of 2024, Manulife registered a solid 19% YoY (year-over-year) increase in its adjusted earnings to $0.94 per share, also exceeding Street analysts’ expectations. During the quarter, the company’s core earnings rose 16% from a year ago to around $1.8 billion due mainly to robust business performance across its insurance segments and higher fee income within its global wealth and asset management division.

Another key factor that makes Manulife a safe dividend stock to hold for the long term is its solid capital position, which allows it to support growth initiatives and return value to shareholders. Notably, it has raised its dividends for the last 10 consecutive years.

Enbridge stock

Enbridge (TSX:ENB) could be another large-cap Canadian dividend stock you can add to your long-term portfolio with less than $500. After sliding by 9.9% last year, ENB stock has recovered by 3.4% to currently trade at $49.33 per share with a market cap of $105 billion. However, the recent declines in its share prices have made the annualized dividend yield of the Calgary-headquartered energy giant even more appealing, now standing at around 7.4%.

The Canadian oil and gas transportation company reported a strong 8.2% YoY jump in its first-quarter adjusted earnings to $0.92 per share, beating Street analysts’ estimates of $0.81 per share by a healthy margin. During the quarter, Enbridge also completed the acquisition of The East Ohio Gas Company for US$6.6 billion in an effort to improve its presence in the U.S. gas utility market.

Besides its strong financials and solid growth prospects, the fact that this Canadian dividend stock has been raising its dividend payouts for 29 consecutive quarters makes it really attractive for income-seeking investors.

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.

The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

woman analyze data
Dividend Stocks

The Smartest Dividend Stocks to Buy With $1,000 Right Now

Do you have some cash to invest but want to earn a safe, low-risk dividend return? These dividend stocks are…

Read more »

An investor uses a tablet
Dividend Stocks

5 Canadian Dividend Stocks I Think Everyone Should Own

These Canadian stocks have a solid track record of dividend growth and offer compelling yields near their current market price.

Read more »

calculate and analyze stock
Dividend Stocks

This 4.4% Dividend Stock Pays Cash Every Single Month

This high-quality Canadian dividend stock offers an attractive yield and plenty of long-term growth potential.

Read more »

edit Safe pig, protect money
Dividend Stocks

3 TSX Dividend Aristocrats That Can Weather Any Economic Storm

Market volatility has investors wondering which stocks can withstand an economic storm. Here are three to consider today.

Read more »

people relax on mountain ledge
Dividend Stocks

Top Canadian Stocks to Buy for Passive Income 

Are you building a passive income portfolio that can beat inflation and provide higher purchasing power? You could consider buying…

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

1 Magnificent Canadian Dividend Stock Down 40 Percent to Buy and Hold Forever

This magnificent Canadian dividend stock trades at a huge discount, offers stellar growth, and pays one of the best yields…

Read more »

A plant grows from coins.
Dividend Stocks

Top Canadian Stocks to Buy for Dividend Growth

Dividend growth stocks can be a good option to build a passive income that beats inflation and improves buying power.

Read more »

Concept of multiple streams of income
Top TSX Stocks

The Best Stocks to Invest $1,000 in Right Now

Here are some of the best stocks that every investor should own today to generate massive income and strong growth…

Read more »