Canada certainly has some top world-class dividend stocks to choose from, stemming from a variety of sectors with unique business models. Long-term investors from around the world may largely overlook these names, due simply to the reality of where these companies are publicly listed.
That said, I think there’s a solid underlying investment thesis to consider when it comes to each of these names. For those looking for exciting and historically dominant Canadian dividend stocks to buy right now, here are three I think need to be on investors’ watch lists.
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Scotiabank
Bank of Nova Scotia (TSX: BNS) is among Canada’s top banks, and continues to provide solid total returns (just like the other picks on this list).
The Canadian banking giant has seen a surge of investor interest in recent months, rocketing to a new all-time high. Much of this has to do with a pervasive view that Canadian banking stocks are much more stable than global counterparts. On that front, it’s hard to disagree with Scotiabank’s relative stability and attractive cash flow growth profile.
Long-term investors looking to remain diversified and hold some exposure to financials may want to consider this name for its growth profile, never mind its 4.7% dividend yield (one of the best of its peer group).
Fortis
Canadian utilities giant Fortis (TSX: FTS) has one of the most impressive dividend profiles of any Canadian company. Indeed, that’s the primary reason I continue to come back to this top-tier dividend stock as one worth buying for the long haul.
For more than five decades straight, Fortis has found a way to raise its dividend each and every year. What this has meant for long-term investors who have bought and held (or continued to dollar cost average into) this name is excellent total returns averaging in the high single digits. Few Canadian companies have provided the kind of stable and consistent growth Fortis has over this time frame.
With strong demand for its core electric and natural gas utilities business (bolstered by AI and other technologies), this is a stock I think investors can continue to own as a sleep-at-night dividend holding.
Suncor
In terms of top Canadian energy stocks for investors to consider right now, Suncor (TSX: SU) remains a top pick of mine for a number of reasons.
First, the company’s ability to produce stable and consistently growing cash flows over time is impressive. Most investors know the commodities space is volatile. And this volatility has certainly been on display in recent years.
However, the company’s dividend profile is one that I think may be overlooked by many investors. With a current dividend yield of 3.9% and a strong historical track record of share buybacks, investors looking for a company that will return capital to shareholders have an excellent option to consider in Suncor.
