Dividend stocks have always been some of the best stocks to buy for long-term investors, and for good reason. They offer consistent income, strong fundamentals, and the ability to grow your wealth steadily over time.
While some stocks rely entirely on price appreciation to deliver returns, dividend stocks pay you just for owning them, making them ideal for both income-focused and growth-minded investors alike.
What sets the best dividend stocks apart is their ability to grow those payouts consistently. Companies that increase their dividends year after year tend to have stable earnings, disciplined management, and strong competitive positions in their industries. That kind of consistency isn’t just reassuring, it’s a sign of long-term business strength.
In uncertain markets, dividend stocks can also provide much-needed stability. They often come from sectors like utilities, telecoms, or consumer staples, which are defensive businesses that generate reliable cash flow regardless of short-term economic conditions.
And when you reinvest those dividends, the compounding effect can significantly boost your long-term returns.
Of course, not every dividend stock is worth owning. The smartest ones to buy have sustainable payout ratios, room for continued growth, and a proven history of rewarding shareholders.
So, if you’ve got cash on the sidelines that you’re looking to put to work, here are some of the best dividend stocks to buy today.
A top renewable energy stock with a significant dividend yield to buy now
The best dividend stocks are not just high-quality companies; they also operate in industries that are either defensive, have years of growth potential, or both.
That’s why one of the very best dividend stocks to buy now is Brookfield Renewable Partners (TSX:BEP.UN), the massive green energy stock.
Not only is Brookfield one of the largest renewable energy companies in the world, with proven success and an incredible management team, but green energy is one of the highest potential sectors you can invest in.
It’s not just years of growth in the sector needed to help clean up the environment; it will take decades, meaning stocks like Brookfield have incredible potential over the long haul.
Furthermore, in addition to the growth potential, the power generation industry is considerably defensive considering the need for energy and the long-term power purchase agreements that are signed.
Currently, analysts estimate that Brookfield will see its revenue grow by over 10% this year and another 8% next year. More importantly, though, analysts estimate that its funds from operations will increase by 13% this year and another 9% next year.
Therefore, given Brookfield’s short and long-term growth potential, its resiliency and the fact that it offers a 5.9% dividend yield today, there’s no question it’s one of the smartest dividend stocks to buy now.
Two top growth stocks for long-term investors
Not all dividend stocks need to pay out a significant amount of cash to be a high-quality investment. In fact, for some companies, especially ones with more growth potential, it’s actually more efficient to invest excess capital back into the business.
So, while they offer a lower yield, they actually offer more growth potential over the long haul.
Thomson Reuters (TSX:TRI) and goeasy (TSX:GSY) are two perfect examples of high-quality dividend stocks to buy now. Both stocks still have a ton of potential and therefore pay out only a fraction of their earnings while reinvesting the rest in more growth.
Both stocks still have impressive dividend growth streaks. goeasy, for example, has increased its dividend for eight straight years now, and in just the last five years it’s increased its dividend by a whopping 229%. Meanwhile, Thomson Reuters has increased its dividend for 29 straight years.
However, because both stocks reinvest the majority of their capital, they generate significant capital gains for investors, too.
For example, over the last decade, goeasy has earned investors a total return of 940%, while Thomson Reuters has earned investors a total return of 600%.
So, if you’re looking for some of the top dividend stocks in Canada to buy now, there’s no question that Thomson Reuters and goeasy are two of the very best.
