When considering the best dividend stocks to buy, investors gravitate to the big names, popular picks and headlining stocks. While this strategy often works well, it does disregard an equally attractive mix of dividend stocks that pay out handsomely.
Among the great dividend stocks to buy is this trio of options that most Canadians already use. So, then, why not get some of the money you pay for their services back as a dividend?
Source: Getty Images
A slam-dunk option for your phone bill
At this point, most Canadians own a data-capable mobile device, if not more than one. That insatiable demand for data is fed by Canada’s big telecoms. One telecom in particular offers an insane payout, making it one of the best dividend stocks to buy right now.
That stock is Telus (TSX:T), and here’s why it belongs in your portfolio.
As one of the big telecoms, Telus generates a recurring and stable revenue stream that is backed by its subscriber-based model. That includes wireless, wireline, internet, and TV services.
But that’s not all: Telus also offers a growing Digital Services arm. That segment provides a growing suite of digital services to specific markets such as healthcare and agriculture.
The result is a diversified, growing telecom that invests in growth and pays out a handsome dividend.
As of the time of writing, that dividend carries an impressive 7.84% yield. This means that a $5,000 investment will generate income of nearly $400. That’s more than enough to fund a position that will continue to grow just on reinvestments alone.
Speaking of growth, Telus has provided better than annual upticks to that dividend going back two decades. That fact alone makes this one of the dividend stocks to buy now and forget about for a decade.
Pay your electric bill and then get paid
Another option for investors to consider right now, with both income and defensive appeal, is Fortis (TSX:FTS). Fortis is one of the largest utility stocks on the market. The company offers a portfolio of operating segments in the U.S., Canada, and the Caribbean.
Utilities are stellar dividend stocks to buy thanks to their defensive business models. In short, utilities like Fortis generate a recurring revenue stream that is backed by long-term, regulated contracts that span decades.
As long as Fortis continues to provide that service, it gets paid. And that revenue stream allows Fortis to invest in growth and pay out a substantial quarterly dividend.
That dividend currently works out to a respectable 3.44%. Adding to that appeal is the fact that Fortis has raised that dividend for over 50 consecutive years without fail. The company is one of just two in Canada to reach that milestone.
This makes Fortis another one of the best dividend stocks to buy now and hold for the long term.
Deposit your funds and withdraw that dividend
One final option for investors considering the top dividend stocks to buy now is Bank of Montreal (TSX:BMO). BMO is one of Canada’s big bank stocks. In fact, BMO is the oldest of the big banks, with two centuries of uninterrupted dividend payments under its belt.
Today, that dividend works out to a yield of 3.64%. And like Fortis, BMO has provided annual upticks to that dividend for years without fail.
But what makes BMO one of the best dividend stocks to buy?
That comes down to the stable, yet diversified nature of the bank’s operations. Canada’s financial market is mature and well-regulated. As a result, BMO (and its big bank siblings) generate a reliable revenue stream from that stable market. That stability allows BMO to invest in growth and pay out that dividend.
BMO’s growth stems mainly from the U.S. market, where it enjoys a growing presence. In fact, BMO is one of the largest banks in the U.S. market, with a presence in 32 state markets.
In short, BMO is one of the top dividend stocks to consider buying right now for long-term growth and steady income.
What top dividend stocks are in your portfolio?
All three of the options mentioned above offer investors defensive appeal, solid growth, and handsome income.
In my opinion, one or all should be core positions in any well-diversified portfolio.
