There are plenty of great dividend stocks on the market to choose from. Many of these provide a tasty yield and years of solid growth potential.
Here’s a look at three of those great dividend stocks that should be on the radar of every investor.
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Buy and forget this titan
Enbridge (TSX:ENB) is a superb choice for investors looking to kickstart earnings with dividend stocks. Enbridge is an energy infrastructure giant that generates the majority of its revenue from its massive pipeline business.
That business transports crude and natural gas between refineries and storage tanks across the continent. In fact, Enbridge’s network is the largest and most complex system on the planet, hauling a whopping one-third of all North American-produced crude.
That fact alone makes the stock a great defensive pick, but it’s not all the company does.
Enbridge also operates a natural gas utility and renewable energy business. Both provide a recurring, stable revenue stream that allows Enbridge to invest in growth initiatives and pay out a handsome dividend.
That dividend is what really puts Enbridge on the radar of investors looking at dividend stocks. As of the time of writing, that dividend works out to a tasty 5.5% yield.
This means a $25,000 investment in Enbridge will generate an annual income of $1,360.
Even better, those investors who aren’t ready to draw on that income just yet can opt to reinvest those dividends, allowing them to continue to grow until needed.
Throw in a top-defensive pick
Defensive stocks, especially those that offer generous dividends, are some of the top contenders for any portfolio. One of the best dividend stocks to consider in this area is Canadian Utilities (TSX:CU).
As its name implies, Canadian Utilities is a utility stock. This means that irrespective of which way the market goes, Canadian Utilities, with the essential service it provides, will continue to generate revenue.
The sheer necessity of utility services is an important fact that investors should note. Unlike other staples, where consumers can opt for more frugal options, the same can’t be said when it comes to utility services.
Turning to income, Canadian Utilities stands out as one of the best dividend-paying stocks on the market. The company has provided annual increases to its quarterly dividend for over 50 consecutive years without fail.
That’s a feat that no other company in Canada can attest to. As of the time of writing, the yield offered for that dividend is an impressive 4.8%.
For prospective investors, this makes Canadian Utilities one of the must-have dividend stocks for any portfolio.
Finish strong with a defensive stock paying a crazy yield
Rounding out the top three dividend stocks for investors to consider right now is Telus (TSX:T). Telus is one of Canada’s big telecom stocks, and that comes with several key advantages for investors.
First, we have the defensive appeal. Like utilities, telecoms offer a defensive service with few alternatives. If anything, the defensive appeal of the services that telecoms like Telus offer has only increased in recent years.
Specifically, Telus offers wireless, wireline, internet and TV services. The subscriber-based model provides a recurring revenue stream, which leaves room for investing in growth and paying out a handsome quarterly dividend.
That growth includes investing in upgrading and expanding its network. In fact, Telus announced a whopping $70 billion investment spanning the next several years to fund those improvements.
Turning to income, Telus offers investors a tasty quarterly dividend that pays out one of the best yields on the market. As of the time of writing, Telus offers an insane 7.6% yield.
Additionally, prospective investors should note that Telus has provided better-than-annual increases to that dividend going back well over a decade.
In other words, investors shopping for dividend stocks would do well to consider adding Telus to their portfolio
Dividend stocks for all
All stocks, even the most defensive, carry risk. That’s why the importance of diversifying cannot be understated.
In my opinion, the three dividend stocks mentioned above are great examples of stocks to add to any well-diversified portfolio.
