There’s no shortage of great dividend stocks on the market. Some of those income stocks can provide a growing source of dividends for decades. Among those great dividend picks, there are several noteworthy options that investors can double up on right now.
Here’s a look at three of those great dividend stocks to buy today.
Source: Getty Images
This stock has it all
You can’t mention a list of great dividend stocks to buy and not consider throwing Enbridge (TSX: ENB) on it. Enbridge is an energy infrastructure behemoth with its tentacles embedded into multiple areas of the segment.
That includes operating the largest and most complex pipeline system on the planet and the largest natural gas utility on the continent. Contrary to the stereotype of Enbridge being all about oil and gas, the company boasts a growing renewable energy platform.
Not only do those segments boast significant defensive appeal, but they also provide Enbridge with a recurring (and growing) revenue stream. That revenue stream allows Enbridge to continue investing in growth initiatives and pay a quarterly dividend.
As of the time of writing, that dividend boasts an insane 6.14% yield, making it one of the best-paying options on the market right now.
Long-term investors should also note that Enbridge has provided annual bumps to that dividend for three decades without fail. The company also plans to continue that cadence, making Enbridge a great buy-and-forget option.
Here’s a great option for any portfolio
Another great investment to consider buying right now is Bank of Montreal (TSX: BMO). BMO is one of Canada’s big banks and has been paying dividends to investors longer than anyone else on the market.
Today that yield works out to a tasty 4.62% yield. This means that investors who drop $30,000 into the bank stock can expect to earn an income of just over $1,400. And like Enbridge, BMO has provided annual increases to that dividend for years.
In fact, BMO announced its latest annual uptick this week. During the fourth-quarter results call, BMO announced a $0.04 per share increase, bringing the dividend to $1.59 per share.
Prospective investors should also note that BMO isn’t just one of the great dividend stocks to add to a portfolio. The bank also boasts some growth appeal.
That growth is focused on the U.S. market, where BMO enjoys an increased presence in 32 state markets. Recently, that growth can be traced back to BMO’s acquisition of U.S.-based Bank of the West, which was completed last year.
That deal bolstered BMO’s presence and added millions of new customers as well as billions in deposits to the bank.
Stability from a Dividend King
Dividend Kings are investments that have provided 50 or more consecutive years of annual increases. Fortis (TSX: FTS) is one of the largest utility stocks on the market, and also one of just two Dividend Kings in Canada.
Fortis has provided annual increases to that dividend for an incredible 51 years and currently offers a respectable yield of 3.91%. This means that a $30,000 investment in Fortis will generate a first-year income just shy of $1,200.
Keep in mind that investors who aren’t ready to draw on that income can reinvest those dividends, allowing any eventual income to grow.
Apart from that juicy dividend, one of the reasons why Fortis is one of the great dividend stocks to own is for the stable business model it adheres to. In short, the company provides utility services and collects payments for that service.
That compensation is subject to long-term regulatory contracts that can span decades. This gives Fortis a stable and recurring source of revenue from which it can pay out that tasty dividend while also investing in growth.
In other words, Fortis isn’t just one of the great dividend stocks to own; it’s also a superb buy-and-forget option for any portfolio.
Great dividend stocks to buy
Fortis, Enbridge, and BMO all boast tasty dividends, significant growth prospects and defensive appeal.
In my opinion, one or all of the above stocks should be core holdings in any well-diversified portfolio.
