Want a 4.3% Yield? The 3 TSX Stocks to Buy Today

If you’re looking for top TSX dividend stocks to buy now and confidently own for years, these three are among Canada’s best.

Daniel Da Costa

Author Bio Daniel joined The Motley Fool Canada in 2019 and brings experience in banking, investing, and financial analysis. Growing up as the son of a proprietary stock trader and educator, he developed an early interest in financial markets and a passion for helping Canadians improve their financial well-being. His work spans investment research, economic analysis, and econometric modelling, with a focus on understanding the broader forces that influence businesses, markets, and the economy. As an investor, Daniel looks for high-quality businesses with long-term growth potential, reliable income, and attractive valuations. Outside of finance, Daniel enjoys spending time with his family, playing hockey, running, and sailing. Areas of Expertise Investment research, economic analysis, econometric modelling, banking, financial analysis, business fundamentals, long-term investing, dividend investing, and company valuation. Favorite Investment Quote "It's far better to buy a wonderful company at a fair price than a fair company at a wonderful price." — Warren Buffett

Published October 28, 2024 4:40 pm EDT

High-quality dividend stocks are often some of the best long-term investments you can make due to the passive income they’ll generate for you as well as the capital gains potential they offer. That’s why some of the best TSX stocks to buy now are top-notch dividend stocks.

With interest rates declining, making it easier for companies to generate a profit and causing TSX dividend stocks to rally, now is an excellent opportunity to buy these high-quality stocks while they’re still undervalued.

Furthermore, when you buy a stock that pays an attractive but manageable yield between 4% and 5%, not only do they generate significant income for you, but often, these stocks will retain enough capital to invest in growing their business.

Conversely, if you buy a stock that offers a dividend yield of 7% or 8%, it might generate more passive income, but it likely won’t offer as much growth potential over the long haul.

Therefore, if you’re looking for some of the top TSX dividend stocks to buy now, here are three of the best, each offering a dividend yield of at least 4.3%.

bulb idea thinking — Image source: Getty Images

A top green energy stock

If you’re looking for high-quality TSX dividend stocks, you can buy now and hold for years to come, Brookfield Renewable Partners (TSX: BEP.UN), with its 4.95% yield, is certainly one of the top choices.

Not only do renewable energy stocks like Brookfield have decades of potential as we continue to transition to cleaner energy and slow the pace of climate change, but Brookfield is also the largest green energy stock in Canada, with a massive portfolio of assets diversified worldwide.

This massive portfolio and its diversification are essential for Brookfield. It helps to both mitigate risk and offer exposure to more growth potential.

Furthermore, Brookfield is consistently looking at the most efficient ways to put its capital to work. That means it’s often selling off its more mature assets that it can sell for a premium and recycling that capital into new opportunities that it believes are undervalued.

Therefore, when you consider all the potential green energy has to offer, plus Brookfield’s strategy and top-notch management team, it’s certainly one of the best TSX stocks to buy now.

An impressive industrial REIT

In addition to Brookfield, the real estate sector is another great place to find high-quality dividend stocks, like Granite REIT (TSX: GRT.UN), one of the best real estate stocks you can buy on the TSX.

Granite is an industrial REIT that’s seeing a tonne of growth potential as the economy continues to shift. With online shopping continually becoming more popular, the demand for warehouse space and distribution centres has been steadily rising.

Not only can Granite grow its earnings from building or acquiring new properties, but it can also see significant rental increases as leases turnover.

Therefore, while you can buy Granite cheaply and lock in an attractive yield of 4.33%, it’s certainly one of the best TSX dividend stocks to buy today.

One of the top TSX dividend stocks to buy and hold for years

Both Brookfield and Granite are some of the highest quality stocks you can buy now and have confidence owning for years.

However, if you want one of the best dividend stocks to buy on the TSX today and a core pillar of your portfolio to own for years, I’d recommend considering Nutrien (TSX: NTR).

Not only is Nutrien one of the best dividend stocks in Canada, but it also continues to trade cheaply and offers a compelling yield of 4.4%.

Nutrien is the largest producer of potash and the third-largest producer of nitrogen fertilizer globally. Plus, it has well-integrated operations that even consist of thousands of retail stores.

So, not only is Nutrien a massive $33 billion stock, but it also provides essential operations that make it one of the best TSX stocks to buy now.

Furthermore, as the agriculture industry continues to grow and healthier eating continues becoming more popular, Nutrien has years of growth potential ahead of it.

Therefore, while it trades undervalued and offers a yield of 4.4%, well above its historical average of 3.4%, it’s certainly one of the top stocks to add to your portfolio now.