A well-diversified dividend portfolio can provide a steady income for life, but choosing the right mix of high-quality Canadian stocks is important. If you have $5,000 to invest, these five dividend stocks from various sectors could help you build the perfect foundation for a well-balanced, income-generating portfolio.
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Kinross Gold stock
The first stock in my list is from the mining sector, Kinross Gold (TSX:K). Right now, Kinross stock is trading at $16.44 per share, with a market cap of $20.1 billion and a 1% annualized dividend yield. While this may not be very high, Kinross Gold’s strong cash flows and stable operations make it an attractive long-term stock.
Kinross stock has been on an incredible run of late, up 122% in the last year. This strong momentum mainly comes from its strong financials. In the third quarter of 2024, its revenue surged 71% sequentially, and free cash flow hit a record US$414.6 million. To accelerate its financial growth further, Kinross is continuing to expand operations with disciplined cost control, making it a top dividend stock to own for the long term.
Enbridge stock
The Calgary-based oil and gas infrastructure giant Enbridge (TSX:ENB) could also be a top dividend stock you can add to your portfolio for the long term. After rallying by 32% over the last year, its stock currently trades at $62.70 per share with a market cap of $135.6 billion. At this market price, ENB offers an impressive 6% dividend yield.
The ongoing trend in its financials looks strong as the company reported a 51.2% YoY (year-over-year) increase in its revenue in the September 2024 quarter, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed by 8.5%.
In addition to its well-diversified traditional energy business, Enbridge’s consistently growing footprint in crude oil exports and renewable energy segments brightens its long-term growth outlook.
Royal Bank stock
With a market cap of $238.5 billion, Royal Bank of Canada (TSX:RY) is the largest bank in the country and a great stock for long-term income-focused investors. After rallying by nearly 30% over the last 12 months, RY stock currently trades at $169.90 per share with an annualized dividend yield of 3.5%.
The recent rally in Royal Bank stock has been supported by its solid financials. In its fiscal year 2024 (ended in October), the bank’s net profit jumped by 11% YoY to $16.2 billion. Its recent acquisition of HSBC Canada is continuing to boost its earnings. At the same time, Royal Bank of Canada’s expanding wealth management business and ongoing investments in digital banking and advisory services could drive its future growth.
Thomson Reuters stock
Another strong income stock you can consider buying right now is Thomson Reuters (TSX:TRI). Its stock currently trades at $240.55 per share with a market cap of $107.4 billion and a 1.25% dividend yield. Over the past year, TRI stock has surged 18.4%, benefiting from steady revenue growth.
In the September 2024 quarter, Thomson Reuters registered an 8.2% YoY increase in its total revenue to $1.7 billion, but its adjusted EBITDA fell 4% from a year ago due to higher investments.
With its growing investment in artificial intelligence (AI)-powered solutions, strategic acquisitions, and a strong focus on expanding its “Big 3” segments, TRI stock’s long-term growth outlook remains strong, making it a compelling income stock to own for years to come.
Hydro One stock
The last stock in my list of top Canadian dividend stocks is Hydro One (TSX:H). It’s Ontario’s largest electricity transmission and distribution provider. After climbing by around 14% over the last nine months, its stock currently trades at $44.53 per share, with a market cap of $26.5 billion and an annualized dividend yield of 2.82%.
In the latest reported quarter, Hydro’s revenue rose 13.3% YoY to $2.2 billion, while its adjusted earnings rose 5.1% from a year ago to $0.62 per share. With strategic investments in infrastructure and transmission projects, Hydro One stock continues to be a reliable income stock for long-term investors.
