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.
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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.
