When looking for top dividend stocks to invest in, the world is a big place. Investors have plenty of markets to choose from, each with their own unique benefits and downsides.
That said, I’ve long viewed the Canadian stock market as one which provides excellent opportunities for those seeking passive income for retirement or any other goals.
Let’s dive into five of the best Canadian dividend stocks every investor should own, or think about owning, right now.
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Fortis
Fortis (TSX: FTS) is the Canadian dividend stock I’ve probably touted the most often in recent years, but for many of the same reasons.
This leading Canadian utility giant has been one of the best-performing stocks in its sector, with impressive cash flows emboldened by strong underlying demand headwinds. With strong earnings growth (for those who believe this AI trend is real), a dividend-growth track record of more than five decades straight, and a current yield of 3.5%, there’s a lot to like about how Fortis is positioned for long-term passive income generation.
Bank of Nova Scotia
In the world of large Canadian banks, Bank of Nova Scotia (TSX: BNS) is perhaps my top pick for dividend investors looking for yield (and dividend growth) over time.
With a current yield of 4.4% and plenty of capital appreciation upside (as the chart above shows), Scotiabank has been a top performer this past year. I think it can continue to deliver solid returns for long-term investors.
For those betting on a continued steepening of the yield curve and a favourable regulatory environment in Canada continuing for years to come, Scotiabank stock is a great option for those seeking both portfolio stability and strong total long-term returns.
SmartCentres REIT
On the higher end of the yield spectrum, SmartCentre REIT’s (TSX: SRU.UN) 6.9% investment-grade yield is one that’s very difficult to find in this market.
I’ve written a number of pieces as to why I think this is a solid pick right now. But the overall thesis boils down to the idea that the company’s core tenant and real estate portfolio are among the most robust in this sector. For those looking to benefit from the long-term upside retail-focused commercial real estate can provide (while earning a nearly 7% yield), this is how I’d do so right now.
Enbridge
Another top Canadian dividend stock I’ve long thought is an excellent place for passive-income investors to hide out (and earn solid returns) is Enbridge (TSX: ENB).
Shares of the Canadian pipeline giant have gotten a big boost from administrations in Canada and the U.S. that are prioritizing fossil fuel development and energy independence goals. But with new pipelines potentially on the horizon as Canada looks to broaden out its list of trading partners, I think Enbridge could be an even more attractive stock from a capital appreciation standpoint moving forward.
With a dividend yield of more than 6% and plenty of room for additional dividend increases over time, this is a top dividend stock I remain bullish on for the long term.
Manulife Financial
Last, but certainly not least on this list of dividend stocks I think are worth pursuing right now is none other than Canadian insurance giant Manulife (TSX: MFC).
Shares of the insurance and wealth management giant have been on a tear, thanks to strong domestic performance and continued growth globally. With an increasing presence in Asia, and a dividend yield of 3.4% to boot, those who believe the yield curve will steepen further could benefit from holding this name in the years (and decades) to come.
