Yield Today, Growth Tomorrow: 3 Stocks to Keep Building Your Wealth

For investors seeking yield today and growth tomorrow, these top Canadian dividend stocks are certainly worth considering right now.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For investors looking for top dividend stocks to buy for their yield today, and their growth prospects moving forward, the good news is that there are plenty of options to choose from. The Canadian market is one that’s chock full of top options in high-yielding sectors, making the list of opportunities a potentially daunting one for income investors.

That said, some opportunities are better than others. The three companies I’ve highlighted below each provide what I think are some of the best yields in the market, supported by some of the best long-term outlooks out there.

Without further ado, let’s dive into three top dividend stocks long-term investors may want to consider to grow their wealth.

Dream Industrial REIT

Among the top dividend stocks I think could provide the best upside in this current environment is Dream Industrial REIT (TSX:DIR.UN). As its name suggests, this top Canada-based REIT focuses on industrial real estate. You know, the warehouses and distribution centres that run the North American economy.

Created with Highcharts 11.4.3Dream Industrial Real Estate Investment Trust PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The trust owns and operates some of the best industrial properties situated in prime locations across Canada and the U.S. If we do see a real estate slowdown, many sectors of the economy and real estate market could suffer. But I do think industrial real estate will hold up much better than other asset classes, due to the strong secular tailwinds supporting these assets.

Dream Industrial’s recent Q1 results were strong, with the company seeing net operating income grow 7.7% year-over-year and rental income tick up 5.4% over the same time frame. With a yield of 5.7%, this is a top real estate option I think investors can buy and sleep soundly at night. That’s not so easy to find in the real estate sector these days.

Enbridge

For investors seeking a lot more yield, Enbridge (TSX:ENB) remains my top high-yield option to consider right now. With a dividend yield of 7.7%, this top North American pipeline operator seems well-positioned to see continued growth long term, as a heightened focus on energy security becomes even more prescient in this geopolitical climate.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

As Canada and the U.S. seek to solidify their energy-independent model, Enbridge’s network of existing pipelines stand to benefit. Additionally, various expansion projects may come under less scrutiny moving forward, providing the additional capacity that could drive continued cash flow growth over time.

On the financials front, Enbridge continues to perform well, bringing in US$0.67 per share in GAAP earnings during Q1. As the company continues to see strong cash flow growth (growing 9% year-over-year this past quarter), I expect its yield to drop over time as investors pile in. Thus, this could be a top buying opportunity many investors are overlooking right now.

Manulife Financial

Moving onto the insurance space, Manulife (TSX:MFC) continues to remain a top pick of mine for dividend investors seeking a company trading at a reasonable valuation. In addition to its core life insurance business, Manulife is also a top provider of wealth management products and has seen strong uptake in global markets in recent years, particularly in China.

Created with Highcharts 11.4.3Manulife Financial PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

One of the big three insurance companies in Canada, Manulife serves more than 35 million customers, generating strong cash flow growth. And while Manulife’s cash from operating activities did decrease on a year-over-year basis this past quarter, strong annualized premium equivalent growth of 21% this past quarter should support a renewed growth outlook in the coming quarters as comps improve.

It’s my view that these three dividend stocks are top options for long-term investors looking to grow their wealth long term. For those taking a medium- to long-term approach to building their portfolios, these Canadian dividend stocks provide the potential for portfolio outperformance.

Should you invest $1,000 in Dream Industrial REIT right now?

Before you buy stock in Dream Industrial REIT, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Dream Industrial REIT wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Chris MacDonald has positions in Enbridge. The Motley Fool recommends Dream Industrial Real Estate Investment Trust and Enbridge. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

analyze data
Dividend Stocks

How I’d Invest $28,000 in Canadian Natural Resource Stock to Amass Personal Wealth

Investing in TSX dividend stocks such as Enbridge can help you earn a passive-income stream in 2025.

Read more »

hand stacks coins
Dividend Stocks

Got $400? How I’d Start Building Income With 3 High-Yield Stocks for the Long Term

These high-yield dividend stocks have a solid payout history, making them compelling investments to generate passive income.

Read more »

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

I’d Put $15,000 in These 3 Dividend-Growth Champions for Increasing Income Potential

Want to offset some volatility? Here are three defensive dividend-growth champions that can generate a juicy yield right now.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $7,000

Discover how the Tax-Free Savings Account can be your golden goose for generating cash without losing your investment.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Invest $10,000 in Canadian Value Stocks for Monthly Dividend Income

A $10,000-diversified portfolio of value stocks focusing on dividend safety, yield, growth, and payment schedules can provide a reliable source…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »