How I’d Invest $100,000 in Canadian Dividend Stocks

Canadian dividend stocks can provide a growing source of income in any portfolio. Here’s where I would invest $100,000 today.

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Investing in the right Canadian dividend stocks can make a huge difference over a long period of time. Fortunately, the market gives us plenty of opportunities and options to consider when investing.

Here’s a look at some of the superb Canadian dividend stocks I would consider investing in given a $100,000 portfolio.

You can’t go wrong with this bank

The first option on this Canadian dividend stocks wish list is Bank of Nova Scotia (TSX:BNS). Scotiabank isn’t the largest of the Canadian big banks, but it is the most international bank in Canada.

That international presence provides stellar growth for Scotiabank, which in turn allows it to invest in additional growth opportunities and pay out a very handsome quarterly dividend.

As of the time of writing, Scotiabank’s dividend works out to an appetizing 5.9% yield. This means that if we were to invest $35,000 of that initial $100,000, investors would generate an annual income of nearly $2,000.

Even better, the bank has an established cadence of providing annual increases to that dividend going back several years. This means that prospective investors who aren’t ready to draw on that income yet can choose to reinvest it, allowing any potential future income to continue growing.

Invest in a defensive titan

Apart from Canada’s big bank stocks, some other segments of the market can offer growth and income. One such area is telecom stocks, and in particular, Telus (TSX:T).

Telus offers investors a suite of subscriber-based services. Currently, that includes wireline, wireless, TV and internet services to customers across the country.

Additionally, Telus boasts a growing (and profitable) digital services segment. That business provides digital solutions to niche market segments such as healthcare and agriculture.

Collectively, both segments provide a reliable revenue stream for Telus, which in turn allows the company to invest in growth and pay one of the best dividends on the market.

As of the time of writing, that dividend works out to a very tasty 7.5%. Prospective investors should also note that Telus has provided annual or better increases to that dividend going back well over a decade.

From our $100,000 portfolio, investing $30,000 into Telus will provide a recurring revenue stream that is both defensive and growing.

This fact alone makes Telus one of the Canadian Dividend stocks your portfolio needs.

There’s more to this stock than oil pipelines

You can’t mention great Canadian dividend stocks without including Enbridge (TSX:ENB). The energy infrastructure titan offers investors a very tasty dividend and multiple, reliable, growing business segments.

Those business units include Enbridge’s lucrative pipeline business, renewable energy operation, and natural gas utility. All three generate reliable, growing revenue that allows Enbridge to invest in growth and pay out a very handsome dividend.

More importantly, all three of those segments are highly defensive, making the stock an ideal option for any bout of market volatility.

As of the time of writing, Enbridge offers a tasty 5.8% yield, making it one of the better-paying options on the market.

Prospective investors should also note that Enbridge has provided annual increases to that dividend going back three decades without fail. The company also plans to continue that tradition.

Final thoughts on the Canadian Dividend stocks you need

Even the trio of stellar Canadian dividend stocks mentioned above are not immune to risk. They do, however, boast solid growth, reliable revenue streams and most importantly, very juicy dividends.

So then, how did our $100,000 investment portfolio pan out?

CompanyRecent PriceTotal  InvestedNo. of SharesDividendTotal PayoutFrequency
Bank of Nova Scotia$77.88$35,000449$4.40$1975.60Quarterly
Telus$22.25$30,0001,348$1.67$2251.16Quarterly
Enbridge$65.13$35,000537$3.77$2024.49Quarterly

The three stocks mentioned above can provide an income of over $6,200 annually, while also seeing annual bumps through increases.

Keep in mind that prospective investors who are not yet at that $100,000 level or are not ready to draw on that income can instead opt to reinvest those dividends. This will allow any eventual income to continue growing until needed.

In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.

Buy them, hold them, and watch your income grow.

Fool contributor Demetris Afxentiou has positions in Bank Of Nova Scotia and Enbridge. The Motley Fool recommends Bank Of Nova Scotia, Enbridge, and TELUS. The Motley Fool has a disclosure policy.

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