Investors looking at putting together a top-quality portfolio of Canadian dividend stocks certainly have plenty to consider, particularly in this current macro backdrop. Of course, there’s the threat of higher tariffs on Canadian companies, domestic uncertainty around slowing economic growth, and how the specific dividend-paying companies investors are looking at will perform from a balance sheet perspective in such an environment.
The good news is that there happens to be a wide swath of excellent dividend stocks on the TSX worth considering right now for those with a long-term investing mindset. These companies most certainly will not be exempt from any market turmoil ahead. However, as part of a star-studded dividend portfolio, these are the five names I’d consider right off the bat as ways to create another passive-income stream in retirement (or well ahead of retirement, for that matter).
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Suncor
One of my top ideas in the energy space, Canadian oil sands giant Suncor (TSX:SU) stands tall as a clear winner in this uncertain backdrop.
The Trump administration is looking to bring “fair trade” back to U.S. policy but has exempted most oil imports from the hefty tariffs other companies are dealing with. And while oil prices have fluctuated violently of late, Suncor’s status as a Canadian leader in producing and delivering heavy oil, which is necessary for the U.S. Midwest, positions the company well for long-term growth.
With strong earnings growth this past quarter and consistent profitability and cash flow growth, Suncor’s 4.5% dividend yield is one I think is worth picking up right now.
Enbridge
Sticking in the energy sector, pipeline giant Enbridge (TSX:ENB) is another top dividend pick of mine for more than “just” the company’s 6.1% dividend yield.
That’s among the highest in the energy sector among blue chip stocks and is a reason for investors to own this company for the long term. However, the company’s status as a leading pipeline player positions the company well to benefit from long-term trends tied to North American energy independence and stability in this market. Those thinking about the long term would do well to consider this dividend name as a key portfolio addition.
Fortis
Fortis (TSX:FTS) is a Canadian utility giant I’ve continued to pound the table on, mostly due to the company’s ultra-defensive business model (which is certainly great in times of uncertainty like these).
However, the company’s dividend profile is noteworthy and what drives many income-focused investors to this name. Fortis is among the rare group of companies that have raised their dividends each and every year for more than five decades. Thus, for long-term investors not only looking for yield today (Fortis’s 3.7% dividend yield is worth considering on its own) but dividend growth over the long term, this would be among my top picks in the market right now.
Toronto-Dominion Bank
Among Canada’s largest and most diversified banks, Toronto-Dominion Bank (TSX:TD) is one of my top picks in this sector for those seeking yield.
TD’s 4.7% dividend yield is certainly fantastic and adds to the company’s long-term capital appreciation upside (seen in the chart above). But as more of a bond proxy for most investors, this bank’s capital return policy will likely continue to provide excellent total returns for patient investors who can wait out any short-term noise.
On any major market dips, TD stock remains a buy in my books for those looking to build a rock-solid dividend portfolio moving forward.
Restaurant Brands
Let’s finish off with one of the top TSX dividend stocks I’m most bullish on for the long term: Restaurant Brands (TSX:QSR).
The fast-food giant has seen a bumpy ride forward of late. But the company’s long-term chart remains up and to the right, for the most part.
Much of that has to do with the company’s impressive same-store sales growth, in combination with Restaurant Brands’s ability to acquire top-notch banners to diversify its holdings further. With a dividend yield of 4.7% and perhaps one of the best capital-appreciation upside profiles of the five stocks mentioned on this list, this is a top pick of mine and will remain so until something changes.
