Finding those oh so perfect dividend stocks for automatic income generation is a dream for any investor. Here’s the good part: there are more than a few great stocks that fit into that great dividend category.
In fact, there are more than a few that boast tasty yields over 5% that will make dividend stocks for automatic income a reality much sooner. Here’s a shortlist of the greatest picks for any portfolio.
Source: Getty Images
Option #1: BCE
When mentioning dividend stocks for automatic income, there are few stocks more memorable than BCE (TSX: BCE). As one of the big telecom stocks, BCE enjoys a highly regulated and reliable revenue stream that’s derived from its subscriber-based business.
That business is highly defensive, and in recent years, that moat has increased as the need for reliable internet and wireless 5G service has grown. Speaking of internet service, BCE’s venture into the U.S. market through its Ziply Fiber holds significant long-term growth potential.
That growth comes at a unique time for the telecom as it follows a painful few years of cost-cutting and even slashing its dividend in the wake of rising costs.
Incredibly, since those painful cuts, BCE has made the right moves to turn itself around (including the Ziply acquisition).
Turning to dividends, the telecom offers a tasty quarterly dividend, which it has been paying without fail for well over a century. As of the time of writing, that yield works out to an impressive 5.43%.
Option #2: Enbridge
Another great option among the dividend stocks for automatic income to consider is Enbridge (TSX: ENB). Enbridge is an absolute behemoth in the energy infrastructure field. The company boasts the continent’s largest and most complex pipeline network, which generates the bulk of its revenue.
Enbridge also offers investors a renewable energy operation with sites located across North America and Europe. That business provides a reliable revenue stream that is backed by long-term, regulated contracts not unlike utilities.
Speaking of utilities, Enbridge also operates one of the largest natural gas utility businesses in North America. The segment represents yet another growing business that generates ample revenue to invest in growth and pay out a handsome dividend.
That dividend is the real thing. Apart from the juicy 5.46% yield, Enbridge has a storied history of providing investors with annual upticks to that dividend going back three decades without fail.
That fact alone makes this a must-have for investors seeking dividend stocks for automatic income.
Option #3: Slate Grocery REIT
One final pick for investors to consider is Slate Grocery REIT (TSX: SGR.UN). Slate is a grocery-anchored real estate investment trust, boasting a portfolio of over 110 sites that are located across the U.S. market.
Because it provides necessities, those grocery-anchored retail sites are incredibly defensive. Adding to that appeal, Slate’s tenant list includes some of the largest and best-known names in the retail field.
Prospective investors should also note that Slate’s properties include not only that grocery-anchored tenant, but also adjoining retail stores on the property. This includes pharmacies, doctor offices, restaurants, and more.
In other words, not only is Slate defensive, but it’s well-diversified, too.
Turning to income, Slate really impresses. The company offers a tasty monthly distribution, which, as of the time of writing, works out to an insane 8.13%. This makes Slate one of the best-paying options on the market.
To put that earning potential into context for investors seeking dividend stocks for automatic income, let’s consider a $30,000 investment in Slate. That initial investment will provide a monthly income of just over $200.
Even better, investors who aren’t ready to draw on that income yet can choose to reinvest it. This will allow that income to continue growing until needed.
Your dividend stocks for automatic income await!
The three stocks mentioned above are great options for investors looking at dividend stocks for automatic income. Even better, each of the above boasts defensive appeal and growth potential in addition to those juicy yields.
In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.
