These 3 Canadian Dividend Stocks Are Screaming Buys, and I’m Taking the Bait

Let’s dive into why Fortis, Suncor, and Agnico Eagle are top dividend stocks long-term investors would be remiss to ignore right now.

For investors seeking passive income, dividend stocks are among the best vehicles over the long term to be considered. Here are three Canadian dividend stocks I’m looking at today.

hand stacking money coins

Source: Getty Images

Suncor

One of my top picks in the Canadian energy sector continues to be Suncor (TSX: SU).

Shares of the oil sands giant have been making a solid trek higher, up more than 13% over the past 12 months alone. Now, I think this is a trend that can continue, particularly as domestic energy production remains key to the North American energy independence story.

Aside from concerns around geopolitics and trade policy from the U.S., Suncor’s underlying operational strength and its ability to be profitable in a much lower oil price environment position investors well. With a dividend yield of 3.9% and a solid balance sheet, Suncor remains one of my top ways for investors to gain exposure to the oil & gas sector right now.

Fortis

Utility giant Fortis (TSX: FTS) continues to be one of my top picks for dividend-growth investors, particularly because Fortis has one of the longest dividend hike track records on the TSX. With more than five decades of such increases under its belt, investors can rest assured that they will not only receive the same dividends they have in the past, but that their passive income will grow over time.

The company’s 3.6% dividend yield is meaningful, but it’s also supported by one of the most robust balance sheets in the sector. And at a valuation of just 20 times earnings, there’s a strong value argument to be made for this utility name as well.

If the artificial intelligence revolution really does bring about the sort of surge in power demand so many expect, Fortis and its peers will really need to ramp up their production and delivery of natural gas and electricity over time. That should bode well for investors who want to get in front of this trade right now.

Agnico Eagle

Now, for a more compelling pick for many investors looking to take advantage of what’s been an incredible run in the price of gold and other precious metals/commodities. Agnico Eagle (TSX: AEM) is a top Canada-based gold miner and one of the largest in the world. However, the company doesn’t carry the same cachet as other top miners in this space, and I think it’s relatively overlooked for this reason.

That said, looking at Agnico’s stock chart above, it’s clear that there’s plenty of momentum to be had with this top gold miner. The thing is, I think the underlying rally in both the price of gold and gold miners as a whole is far from over. That’s partly due to some analysis I read recently, which said that if the entire gold supply were priced in a similar manner to Bitcoin, gold should be worth much closer to $10,000 an ounce than where it currently trades (nearing the $4,000 level presently).

I’m not someone who is likely to be defined as a “gold bug.” However, I’m also someone who understands the hedging value gold provides, as well as its necessary use as a currency backdrop for many central banks around the world looking for currency stability.

In this environment, Agnico Eagle is how I would continue to play the rising price of gold for those so inclined to do so.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

A woman stands on an apartment balcony in a city
Dividend Stocks

How Much Would You Need in a TFSA to Earn $750 a Month Tax-Free?

Earning $750 a month tax free takes about $113,000 in a TFSA. See how GO Residential REIT and Decisive Dividend…

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

How I’d Structure a $50,000 TFSA to Fund My Retirement

These Canadian stocks offer diversification across different sectors and are likely to deliver solid total returns in the long term.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Hot Take: The Best Monthly Dividend Stock on the TSX Right Now

Three TSX monthly dividend stocks are strong buys today for their yields, balance sheet strength, and cash flow sustainability.

Read more »

oil pump jack under night sky
Dividend Stocks

A 4.5% Dividend Stock That Pays Out Monthly

This 4.5% dividend stock is better positioned to continue rewarding shareholders with steady payouts across all market conditions.

Read more »

fast shopping cart in grocery store
Dividend Stocks

A Top-Notch 5% Dividend Stock to Fuel Your Retirement Income Every Month

Retirees looking for stable, monthly income should consider Choice Properties, especially on meaningful market corrections.

Read more »

A Canada Pension Plan Statement of Contributions with a 100 dollar banknote and dollar coins.
Dividend Stocks

OAS Clawback Worries? I’d Check Where My Dividend Stocks Are Held

The account holding a dividend stock can change its effect on OAS, even when the cash payment is identical.

Read more »

man calculates finances
Dividend Stocks

How Much to Invest in CT REIT for $1,000 a Year in Dividends

CT REIT offers a solid investment with a 5.4% yield. Understand how it compares to other REIT options.

Read more »

traders work at stock exchange
Dividend Stocks

Dividend Income vs Selling Shares: Which Strategy Generates Better Cash Flow?

When should you sell those shares that have outperformed and take the capital gain as a lump-sum cash inflow? Let's…

Read more »