Looking for some of the best income-producing stocks to buy for longer-term performance? The market gives us no shortage of great options to consider when it comes to dividend stocks to buy.
Best of all, those dividend stocks can kickstart your portfolio without needing thousands of dollars. Here’s a look at some of those dividend stocks to buy.
Buy this stock today and put it on autopilot
Let’s start by talking a bit about Canadian Utilities (TSX: CU). Utility stocks like Canadian Utilities generate a reliable revenue stream which allows it to invest in growth and pay a generous dividend.
Contrary to the utility stock stereotype of being boring investments with little growth, Canadian Utilities does offer significant growth. By way of example, earlier this spring, Canadian Utilities announced plans for a new 200-km pipeline known as the Yellowhead Mainline.
The $2 billion project is expected to be operational in 2027, at which point it will transport one billion cubic feet of natural gas each day.
As one of the dividend stocks to buy now, Canadian Utilities is, for lack of another word, the king. The company has provided annual increases to its dividend for an incredible 52 years without fail. This makes the utility one of only two Dividend Kings on the market.
As of the time of writing, Canadian Utilities’s dividend works out to a generous 5.49%. With an initial outlay of $3,000, that payout is enough to generate a handful of shares each year to let your investment grow on autopilot.
This bank will deposit lots of dividends
Canada’s big banks are among some of the best long-term options on the market. Part of the reason for that is that they manage to balance the reliable business segments in Canada with strong international growth.
The result is a reliable investment that continues to grow and pays out some of the best dividends on the market.
And among those big banks, Bank of Nova Scotia (TSX: BNS) is one of the dividend stocks to buy right now. Scotiabank is known as Canada’s most international bank, and there’s a good reason for that.
The bank has a massive presence internationally, with an emphasis in recent years on high-growth markets in Latin America. This shift has allowed the bank to balance out its portfolio between the stable domestic segment and foreign markets.
That’s not to say that Scotiabank doesn’t operate in more mature markets. The bank also has a growing presence in the U.S. market.
Turning to income, Scotiabank offers investors a tasty quarterly dividend. As of the time of writing, that dividend works out to an insane 6.46%. Like Canadian Utilities, that dividend income is enough to generate several shares each year through reinvestments.
Buy and forget without any hassle
One final option for investors looking for dividend stocks to buy is RioCan Real Estate (TSX: REI.UN). Thanks to rising home prices and interest rates, owning a rental property is no longer an affordable option for would-be landlords.
Instead, owning part of RioCan, one of Canada’s largest real estate investment trusts (REITs), is an intriguing option to consider. RioCan operates a growing portfolio of mixed-use properties that combine both retail and residential properties.
Additionally, those properties are located along high-traffic, in-demand areas of Canada’s metro areas. The result is a lower risk (compared to buying a property) and a more diversified option for investors.
And like a landlord collecting rent, investors will get a monthly distribution. As of the time of writing, RioCan offers a juicy 6.27% yield.
Dividend stocks to buy are everywhere
There’s no shortage of dividend stocks to buy, but it’s important to note that no stock, even the most defensive, is without some risk.
That’s part of the reason why the three stocks noted above are great dividend stocks to buy. They can provide growth and income-earning potential while packaged in a defensive shell.
In short, buy them, hold them, and watch them grow.
