There’s no shortage of great investments in the market. That includes some of the best dividend stars available to Canadian investors. Even better, some of those dividend stars offer juicy yields and still trade at attractive prices.
Here is a look at three of them to consider buying today.
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Star#1: Enbridge
Enbridge (TSX: ENB) is one of the largest energy infrastructure companies on the planet. The company operates several complementary business units that generate a recurring revenue stream, leaving room for growth and additional investments. That includes a natural gas utility, a renewable energy portfolio, and a pipeline business.
The pipeline operation generates the bulk of the company’s revenue. This comes thanks to the pass-through revenue generated by the toll road-like segments. Even better, the pipeline business is regarded as one of the most defensive moats on the market. That’s thanks to the sheer volume of crude natural gas transported across that network.
That same defensive appeal extends to the other segments as well. The renewable energy business includes approximately 40 facilities located across Europe and North America. It generates a stable revenue stream backed by long-term regulated contracts.
The natural gas utility business offers a similar defensive appeal.
In terms of a dividend, Enbridge offers a quarterly dividend with a yield of 5.9%. The company has also provided an annual increase to that dividend for over three decades without fail.
Collectively, the segments and that dividend help elevate Enbridge to become one of the dividend stars for any portfolio.
Star#2: Fortis
Countering the high-yield appeal of Enbridge is the defensive appeal of Fortis (TSX: FTS). Fortis justifies its place among the dividend stars thanks to its superb business model and dividend.
As a utility stock, Fortis generates the bulk of its revenue from regulated contracts. Many of those contracts span decades in duration, making Fortis a stable option for any portfolio.
The sheer nature of the service that Fortis provides makes it a defensive titan. That’s because customers cannot trade down utility service like they can a grocery list or cell phone bill. That stable revenue stream allows the company to invest in growth initiatives and pay a handsome dividend.
Fortis has historically taken an aggressive stance on growth, but in recent years, that focus has shifted to upgrading facilities and transitioning to renewables.
In terms of income, Fortis offers a quarterly dividend that pays out a yield of 3.5%. Adding to that appeal is that Fortis has paid out that dividend and provided annual increases for over 50 consecutive years.
That makes Fortis one of the dividend stars that belongs in any portfolio.
Star#3: Bank of Nova Scotia
It would be hard to assemble a list of dividend stars and not mention one of Canada’s big bank stocks. And that bank for investors to consider right now is Bank of Nova Scotia (TSX: BNS).
Scotiabank isn’t the largest of the big banks, but it is the most international. The bank’s presence in over a dozen countries has helped Scotiabank both diversify and fund its growth outside of Canada.
In recent years, the bank has shifted its growth focus to markets in North America rather than the developing markets in Latin America. That shift has helped Scotiabank to reduce its risk in more volatile markets by doubling down on more mature markets.
Turning to income, Scotiabank really shines as one of the dividend stars for any portfolio. As of the time of writing, Scotiabank offers a yield of 4.3% and offers over a decade of annual increases.
What are your dividend stars?
The trio of options mentioned above offer investors juicy yields, growth potential, and defensive moats.
While no stock is without some risk, in my opinion, one or more of these stocks should be core holdings in any well-diversified portfolio.
