4 Bargain Canadian Stocks With up to 5.7% Dividend Yields

If you’re out looking for a bargain, these are certainly the four best Canadian dividend stocks out there to add to your portfolio today.

Are you looking for a bargain? That can certainly be easier said than done. While there are many stocks down right now and some on the recovery, it’s still unclear which is a bargain and which is not. For that, we need to get into the nitty-gritty. To look for the fundamentals and momentum that can lead us to realize that we are, indeed, looking at a bargain stock.

Today, let’s look at four that provide a bargain. Offering growth, long-term returns, and dividends, these four stocks provide a stellar option for your portfolio.

Hydro One

Hydro One (TSX: H) is a stable and reliable utility company with a monopoly over the transmission and distribution of electricity in Ontario. The company’s monopolistic position in Ontario’s electricity market, combined with its regulated revenue model, makes it a low-risk investment. Plus, the company’s ongoing infrastructure improvements and commitment to dividend growth provide a compelling case for investment.

Hydro One’s revenue model is predominantly regulated, ensuring steady cash inflows and low volatility in earnings. This is crucial for dividend sustainability and growth. Furthermore, the company is continuously investing in upgrading and expanding its infrastructure, which enhances operational efficiency and reliability.

As for the dividend, Hydro One has a history of increasing dividends, supported by consistent earnings and a strong balance sheet. The current yield of 2.99% is certainly still attractive for income-focused investors.

Brookfield Infrastructure Partners

Another utility winner, Brookfield Infrastructure Partners (TSX: BIP.UN) is a diversified global infrastructure company with a portfolio that includes utilities, transport, energy, and data infrastructure. Its diversified assets and global presence provide stability and growth potential.

BIP.UN’s assets span various infrastructure sectors and geographies, reducing risk and enhancing stability. This diversification allows the company to capitalize on global infrastructure needs. What’s more, the company has shown consistent financial performance, driven by both organic growth and strategic acquisitions.

Right now, BIP.UN offers an attractive dividend yield of 5.2%, supported by strong cash flow generation from its diverse asset base​. So, a diversified and resilient portfolio, combined with its strong financial performance and attractive dividend yield, makes it an excellent choice for investors seeking stable income and growth potential.

Power Corporation of Canada

Next up, we have Power Corporation of Canada (TSX: POW), a diversified international management and holding company with interests in financial services, renewable energy, and other business sectors. Its diversified operations provide stable cash flows and growth opportunities.

Power Corporation’s investments in financial services (including insurance and asset management) and renewable energy provide a balanced and diversified income stream. The company also has a solid history of dividend payments, with a current yield of 5.7%, making it an attractive option for income-seeking investors.

Power Corporation continues to make strategic investments in high-growth sectors, enhancing its long-term growth potential. Altogether, its diversified portfolio and strong dividend yield make it a compelling investment for those seeking a combination of income and growth. Along with the company’s strategic focus on high-growth sectors, which further enhances its appeal to investors.

AGF Management Limited

Finally, we have AGF Management Limited (TSX: AGF.B), an independent asset management firm with a broad range of investment solutions. The company’s focus on diversified investment products and active management has driven consistent performance.

AGF’s comprehensive suite of investment products and solutions caters to a diverse client base, driving steady revenue and earnings. The company has a strong track record of paying consistent dividends, with a current yield of 5.6%, appealing to income-focused investors.

AGF is investing in innovative products and expanding its global presence, positioning it for future growth. All together, the company’s strong asset management business, combined with its consistent dividend payments and growth initiatives, make it an attractive investment for those seeking income and long-term growth potential.

Bottom line

Investing in these four stocks provides a balanced mix of stability, income, and growth potential. Each company offers unique strengths. Whether it’s Hydro One’s regulated monopoly, BIP.UN’s diversified infrastructure portfolio, POW’s strategic investments, or AGF’s robust asset management business. Combined, these investments should certainly add to any diversified investment portfolio.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Person holding a smartphone with a stock chart on screen
Dividend Stocks

For BCE vs. Enbridge, a 5.7% Yield vs. 5.9% (And the One I’d Prefer for Income)

Both BCE and Enbridge offer attractive income, but BCE is a higher-risk turnaround opportunity, whereas Enbridge offers a more predictable…

Read more »

man shops in a drugstore
Dividend Stocks

How Much to Invest in RioCan for $300 a Month in Dividends

How much should you invest in RioCan for $300 a month in dividends? Explore its retail business, monthly payout and…

Read more »

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

Telus Dividend Safety: Is the Stock Still Worth Buying for Income?

Explore the latest insights on Telus dividend amid a challenging earnings report and management's new Transformation Strategy.

Read more »

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

BCE Just Reported: What $10,000 Could Earn You in Dividends Today

BCE is yielding a very generous 5.2%, as the company's telecom business improves and long-term investments drive growth.

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

Is Intact’s Rough Quarter a Blip or the New Normal for Canadian Insurers?

Intact reported $660 million in pre-tax catastrophe losses during the quarter, which dragged its net operating income per share lower.

Read more »

investor faces bear market
Dividend Stocks

How Much to Invest in BCE for $1,500 a Year in Dividends

BCE (TSX:BCE) could be a huge dividend value winner as the stock markets correct and potentially flirt with a bear…

Read more »

diversification is an important part of building a stable portfolio
Dividend Stocks

Want $6,000 a Year From Your TFSA? Here’s the Portfolio Size to Aim for

A $150,000 starting target can support a $6,000 annual TFSA income goal without requiring an extreme yield.

Read more »

top TSX stocks to buy
Dividend Stocks

Hot Take: The Best Monthly Dividend Stock on the TSX Right Now

For investors seeking monthly dividend payments, this REIT has a history of consistent dividend payments across different market conditions, along…

Read more »