Yield-loving investors have plenty of dividend stocks, fixed income options, and other alternative assets to choose from. When building a portfolio for retirement, or simply having another passive income stream to supplement one’s lifestyle, dividend-paying equities can be a great place to start.
I personally prefer dividend stocks to most other forms of yield-bearing instruments out there due to the fact that such securities can increase in value over time, while providing dividend growth over some timeframe.
Without further ado, here are my three top picks for yield-loving investors looking to do just that right now.
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Suncor
Oil and gas giant Suncor (TSX: SU) is a company I’d argue is best-in-class in its segment.
The western Canadian oil sands producer has seen consistent share price growth over the past five years, which happens to coincide with a period of time in which energy prices have been volatile. That’s not to say SU stock hasn’t been volatile over this timeframe – it has.
But Suncor’s size and scale have allowed the energy producer to continue to post profits even in quarters when we saw prices for Western Canadian Select drop, or the discount paid on WCS relative to WTI and other forms of crude widen.
That’s a function of Suncor having one of the best breakeven prices per barrel in the Canadian energy sector. For investors looking for a stock with a 4% dividend yield and capital appreciation upside, Suncor remains a top pick of mine.
Agnico Eagle
A more intriguing pick, at least of late, given where gold prices have gone, is Agnico Eagle (TSX: AEM).
Shares of the dividend-paying gold miner have skyrocketed in recent years, surging from around $50 per share in most of 2023 and 2024 to more than $200 per share today.
So, investors who have stuck with this gold miner during thick and thin (I held shares back when this stock was Kirkland Lake, before it merged), have outperformed. Wish I still held this position, to say the least.
Now sporting a yield of just 1%, thanks in part to this share price surge, some dividend investors may be looking elsewhere for yield. However, Agnico’s mix of high-grade and high-volume mining operations make this company a top-tier player in a hot sector I think could still have more room to run. Those thinking long-term may be well-served by holding some allocation of Agnico here.
Enbridge
On the basis of upfront yield, I’d argue there are few better picks for long-term yield-hungry investors right now than Enbridge (TSX: ENB).
The North American pipeline powerhouse provides a current yield of 5.6%, which is notable given the stock’s rapid ascent higher in recent years.
Much like the other names on this list, Enbridge is back in focus as a top blue-chip dividend stock for investors looking to generate meaningful passive income over the long term. Pipelines aren’t going away anytime soon – we need the power and energy to support continued growth in the North American economy. And given the geopolitical environment of today, these pipelines could become even more valuable as global energy trade weakens.
For those bullish on these dynamics remaining in place (and perhaps becoming more entrenched), Enbridge is a top dividend stock idea worth considering on any dips.
