Investors looking for top-tier dividend stocks to buy today to generate passive income in retirement have plenty of options to choose from. Whether we’re talking about lower-yielding growth stocks or higher-yielding, more mature blue-chip names, there’s something out there for everyone.
In this piece, I’m going to discuss two top 5% yielding dividend stocks I think investors can own with ease in this current environment. These are companies with rock-solid balance sheets, durable cash flows that support their current distributions, and plenty of long-term capital appreciation upside, so long as we see continued economic growth.
Without further ado, let’s dive in!
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SmartCentres REIT
One of my top real estate investment trust (REIT) picks of late, SmartCentres REIT (TSX:SRU.UN) is among the leading retail-focused REITs investing primarily in or around city centres in Canada.
This REIT has seen remarkable net operating income stability over the years, passing off the vast majority of its earnings to investors in the form of distributions. With a solid payout ratio that’s well supported by its blue-chip tenant base and a current dividend yield of 7.2%, this company provides more than a 5% return on capital and a dividend that, I’d suggest, could continue to grow over time.
That’s hard to find in this market, particularly when investors consider the quality of the company’s underlying assets and its low occupancy rate metrics. With little expected to change in the coming years and decades, SmartCentres REIT is among the most boring options in the market. But when it comes to dividend stocks, I’d argue that’s a positive trait overall.
Enbridge
With a dividend yield of 6%, Enrbidge (TSX:ENB) is another stock yielding more than 5% that I think long-term investors can sit on for decades while patiently scraping the yield off this investment.
The company’s core pipeline network is integral to the energy independence narrative in North America, which has become important politically across all borders. This is a company that takes energy from where it’s produced to where it’s refined, and if you’re among the majority of investors who believe we’ll continue to see economic growth in the decades ahead, we’re simply going to need more energy distribution infrastructure.
Additionally, given the penchant for new projects to expand existing supply, I think Enbridge could actually turn back into a growth story. That’s one of the key reasons behind its recent rise. However, over the long term, I’d expect Enbridge to be a boring, stable bond proxy investors can own for its yield and relax.
