The market is full of great dividend stocks I’d buy into (or more of) if the opportunity was given. Fortunately, there’s no time like the present. These two dividend stocks should be on the shortlist of investors everywhere.
All aboard the income train
Canadian National Railway (TSX: CNR) is a superb long-term pick stock I’d buy into more if it took a dip. CN is one of the largest railroad operators on the continent with a network that spans well over 30,000 kilometres in size.
In fact, CN is the only railroad in North America with access to three coastlines, which puts it in a competitive advantage over its peers. Even better is the variety of goods hauled by the railroad.
In terms of volume, CN hauls a whopping $250 billion worth of materials and products each year. That mix includes everything from raw materials and precious metals to chemicals, automotive parts, and wheat.
Turning to dividends, CN offers investors a respectable quarterly dividend that pays out a handsome 2.1% yield. That yield may not be the most impressive on the market, but it is well-covered and rising, much like CN’s stock.
Even better, the company has amassed a whopping 27 consecutive years of annual dividend increases, making it one of the best-returning options on the market. Over the past year, the stock has surged nearly 10%.
Over a longer, five-year period, that growth extends to over 30%, making it a great option to consider. In short, CN is one of the dividend stocks I’d buy, wouldn’t you?
You can’t go wrong with a big bank
Another great option for prospective investors is one of Canada’s big banks. Specifically, I’m referring to Bank of Montreal (TSX: BMO) as one of the dividend stocks I’d buy right now.
There are plenty of great reasons to consider Canada’s big banks. Bank of Montreal, like its big bank peers, generates the bulk of its revenue from a stable domestic segment in Canada. That stability enables the bank to invest in growth and pay out an appetizing dividend.
When it comes to growth, Bank of Montreal has invested heavily in expanding its U.S. presence in recent years. This includes the acquisition it made last year for California-based Bank of the West.
That deal saw Bank of Montreal expand its U.S. footprint to 32 state markets and become one of the largest lenders in the lucrative U.S. market. The deal added hundreds of branches in the U.S. and millions of new customers. This also adds to the overall defensive appeal of the bank, which is huge for long-term investors.
Turning to income, Bank of Montreal has been paying out dividends to shareholders longer than any other company in Canada, nearly two centuries without fail. Today the bank pays out a quarterly dividend that works out to an appetizing 5.4%.
This means that investors looking at Bank of Montreal who invest $25,000 will generate an income of over $1,300. Throw in the expected annual bump to the dividend that Bank of Montreal has provided for years already, and you have an excellent buy-and-forget option.
These are the dividend stocks I’d buy. What about you?
No stock, even the most defensive is without some risk. Fortunately, both Bank of Montreal and Canadian National offer ample defensive appeal, significant growth appeal, and juicy dividends.
In my opinion, one or both would be good additions to any well-diversified portfolio.
Buy them, hold them, and watch them (and your future income) grow.
