Investing in the right Canadian dividend stocks can set you up for substantial long-term wealth growth. When picking dividend stocks for the long run, it’s important to identify those that have the kind of solid underlying businesses that can sustain payouts to shareholders. Fortunately, the TSX has no shortage of high-quality dividend stocks that you can invest in for various financial goals.
Today, we will look at three dividend stocks that find their way into most investor portfolios.
Telus
Telus Corp. (TSX:T) is one of the three biggest telcos in Canada, accounting for around a third of the market share. The $33.80 billion market-cap telecom provider has a defensive business, providing internet, wireless, television, and landline phone services across Alberta and British Columbia. It also has a small wireline presence in Quebec.
The entire suite of subscription-based services it offers across the country combines with its growing digital services segment to set it up for a stronger future. It has reliable revenue streams that allow the company to disburse quarterly payouts regularly to its investors.
As of this writing, Telus stock trades for $22.02 per share and boasts a 7.56% dividend yield.
Enbridge
Enbridge Inc. (TSX:ENB) is another darling stock for dividend-seeking investors. The diversified energy company owns and operates an extensive network of midstream assets that transports hydrocarbons throughout North America. It also has one of the region’s largest natural gas utility businesses under its belt, along with a growing portfolio of renewable energy assets.
The company’s traditional energy operations have allowed it to pay shareholders and increase payouts for over 30 years. The natural gas segment provides predictable and stable cash flows to offset the impact of volatile commodity prices, and its renewable energy portfolio is setting itself up for more growth in a greener future for the energy industry.
As of this writing, Enbridge stock trades for $67.58 per share and boasts a 5.58% dividend yield.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is one of Canada’s Big Six banks, and another favourite for dividend-focused investors. While it might not be the biggest Canadian bank in terms of market capitalization, the $109.46 billion market cap stock has the largest international presence among its closest peers. Its recent expansion into more North American markets and scaling down its Latin American operations will likely introduce more stability in the coming years.
The company’s international presence provides stellar growth potential for Scotiabank, giving it more opportunities to invest in growth. In turn, it can generate the kind of cash flows to continue funding its high-yielding dividends to shareholders.
As of this writing, Scotiabank stock trades for $88.16 per share and boasts a 4.99% dividend yield.
Foolish takeaway
It’s important to remember that even the best dividend stocks are not immune to risk. However, considering their reliable track records, business models, and wide economic moats, these can offer substantial returns through dividends. A hypothetical $100,000 might look like this:
| Ticker | Recent Price | Total Investment | Number of Shares | Dividend Per Share Per Year | Total Annual Payout |
| T | $22.02 | $30,000 | 1,362 | $1.66 | $2,260.92 |
| ENB | $67.58 | $35,000 | 517 | $3.77 | $1,949.09 |
| BNS | $88.16 | $35,000 | 397 | $4.40 | $1,746.80 |
| Total Annual Payout | $5,956.81 |
A hypothetical $100,000 invested across these three stocks can return almost $6,000 per year while seeing annual bumps with dividend hikes. While you must always diversify across several holdings, the example paints a better picture of how $100,000 can get amazing returns for your self-directed portfolio.
