3 Top Dividend Stocks Canadians Can Feel Confident Buying Aggressively

As interest rates continue to fall, here are three of the top Canadian dividend stocks that investors can buy now and hold for years to come.

| More on:
Senior uses a laptop computer

Source: Getty Images

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

With the economic environment improving and interest rates starting to decline in Canada and the United States, many investors know that now is an excellent time to buy stocks while they’re still undervalued, especially some of the top Canadian dividend stocks.

Higher interest rates have impacted tonnes of stocks across the board. However, generally, higher interest rates tend to impact dividend stocks the most since it can make servicing debt more expensive, which impacts profitability, but also since rising bond yields cause dividend yields to rise and stock prices to fall.

Therefore, while many top dividend stocks still trade off their highs and offer higher-than-normal dividend yields, there’s no question that now is an opportune time to build some positions.

With that being said, though, given the uncertainty that still persists, it’s essential to ensure you’re buying some of the highest quality stocks on the market, ones that you can hold with confidence for years to come.

So, if you’ve got some cash you’re looking to put to work today, here are three of the top dividend stocks Canadians can buy today.

A reliable utility stock with a 5.5% yield

If you’re looking for top dividend stocks to buy that can earn you significant passive income but you can also hold with confidence, one of the best to consider is Emera (TSX:EMA), the impressive utility stock.

Created with Highcharts 11.4.3Emera PriceZoom1M3M6MYTD1Y5Y10YALL13 Apr 202010 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202120212022202220232023202420242025202535404550556065www.fool.ca

Emera is a great investment because it offers highly essential services, and its operations are regulated by governments, making its future revenue and earnings highly predictable. Plus, its services are well diversified across multiple jurisdictions.

Furthermore, since the stock owns long-life assets that don’t require much maintenance year-over-year, it constantly generates plenty of cash flow, making it an ideal stock for passive income seekers.

It’s been recovering over the last few months. However, it still trades off its 52-week high. Furthermore, its forward dividend yield of 5.5% is below both its 5 and 10-year average yields of 4.95% and 4.8%, respectively, making now an ideal time to initiate a position.

One of the top dividend stocks in Canada

In addition to Emera, another top dividend stock Canadian investors can buy with confidence today is Brookfield Infrastructure Partners (TSX:BIP.UN).

Created with Highcharts 11.4.3Brookfield Infrastructure Partners PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Brookfield is an ideal dividend stock to buy and hold long-term for many of the same reasons as Emera. It owns a portfolio of essential infrastructure assets – including utilities – that are diversified across countries all over the world.

However, while the company owns defensive assets, management runs the business like a growth stock. So, Brookfield is constantly looking at which of its mature businesses to sell off and where it can recycle that capital into new opportunities.

Therefore, when you consider the essential assets it owns, but also the long-term growth potential it has, Brookfield is one of the best stocks you can buy and hold with confidence today. It can protect your capital in times of economic turmoil and grow it in times of expansion.

Not to mention, Brookfield also consistently increases the distribution it pays to investors each year, and currently, its distribution has a yield of 4.7%. So, if you’re looking for top dividend stocks to buy now, Brookfield is certainly one of the best to consider.

A top telecom stock to buy and hold long-term

In addition to a utility stock like Emera, or an infrastructure stock like Brookfield, telecommunications is another excellent industry to find high-quality cash cows that make some of the top dividend stocks.

That’s why investors looking to buy a passive income generator today should consider Telus (TSX:T).

Created with Highcharts 11.4.3TELUS PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Telecom stocks are ideal businesses to buy and hold long-term for many reasons. Firstly, the industry continues to become more important in our everyday lives, making access to communication essential for most consumers.

In addition, telecom stocks, like utilities, own many long-life assets that don’t require much maintenance year over year. So, Telus is constantly generating billions in cash flow, which it uses to invest in future growth and expand its operations, as well as to fund its dividend.

And with its dividend offering a yield of more than 6.9% today, plus with Telus consistently increasing the dividend each year, there’s no question it’s one of the top dividend stocks that Canadian investors can buy today.

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

Before you buy stock in SmartCentres 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 SmartCentres 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 Daniel Da Costa has positions in Brookfield Infrastructure Partners. The Motley Fool recommends Brookfield Infrastructure Partners, Emera, and TELUS. 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

Asset Management
Dividend Stocks

How I’d Allocate $10,000 in 2 Canadian Growth Stocks for the Long Run

Both growth stocks offer a compelling mix of income, growth, and value, and I believe they can outperform over the…

Read more »

grow money, wealth build
Dividend Stocks

2 Dividend-Growth Stocks to Buy on the Pullback

These stocks have increased their dividends annually for decades.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

BCE Stock Analysis: A Smart Choice for Potential Value and Income

BCE stock has slipped to its June 2009 level amid Trump tariff uncertainty and intensity. Does the sharp dip provide…

Read more »

Person slides down a stair handrail
Dividend Stocks

Should You Buy Cargojet Stock at $70?

Cargojet stock might be down, but don't let that scare you off. It's still a long-term opportunity.

Read more »

Middle aged man drinks coffee
Dividend Stocks

3 Monthly Dividend Stocks to Buy and Hold Forever

Add these three TSX dividend stocks to your self-directed portfolio for reliable monthly passive income.

Read more »

Hourglass projecting a dollar sign as shadow
Dividend Stocks

How I’d Build an Income Portfolio With 3 TSX Stocks Paying Monthly Dividends

Focusing on these three monthly paying TSX dividend stocks can help you reinvest more frequently, enhancing overall returns.

Read more »

Dividend Stocks

How I’d Divide $15,000 Across My Top 3 TSX Stock Picks for Growth and Income

Got $15,000? Here are three TSX stocks that could provide ample dividend and capital returns in the coming years ahead.

Read more »

concept of real estate evaluation
Dividend Stocks

Canadian Real Estate Stocks: How I’d Navigate This Sector With $15,000 During The Pullback

A $15,000 investment split among these two undervalued Canadian defensive REITs could generate high income yields with capital gains upside

Read more »