One of the main goals for Canadian investors is to build an income stream they can trust, especially when relying on Canadian dividends for long‑term stability. That income is established by investing in dividend stocks that can offer stable cash flow, regulated earnings, and some defensive appeal.
That trust is key. Markets are volatile. Interest rates keep shifting, and investors need to be able to tell apart the durable dividend payers from yield traps. Fortunately, there’s no shortage of great dividend stocks for investors to consider buying.
Here are three of those fine dividend stocks from different sectors of the economy that every Canadian should consider a position in.
Pick #1: Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is one of the big bank stocks that offers something that its peers can’t. Not only does Scotiabank offer one of the highest yields compared to the other big banks, but it also boasts a larger international segment that is feeding growth from markets outside of Canada.
Those markets tend to outperform over time, and Scotiabank is in the midst of shifting that growth focus from more volatile markets in Latin America to mature developed markets in the U.S. and Mexico.
That growth helps fuel the bank’s dividend, which is the real reason Canadian investors turn to dividend stocks like Scotiabank. As of the time of writing, Scotiabank offers a yield of 4.17%, making it a solid option for investors seeking an income stream from dividend stocks.
Pick #2: Emera
While Scotiabank offers dividends and growth, Emera (TSX:EMA) offers stability and defensive appeal. As a utility stock, Emera generates predictable cash flows, allowing it to invest in growth and cover its quarterly dividend.
The company boasts a portfolio that includes operations in Canada, the U.S., and the Caribbean. The overwhelming majority of those assets are regulated, which provides additional defensive appeal. The company also continues to invest in regulated infrastructure, fueling future growth.
Turning to income, Emera has paid out reliable dividends and provided annual upticks for decades. As of the time of writing, the company offers a yield of 4.30%, making it one of the dividend stocks that every portfolio needs.
Pick #3: Enbridge
There are a few dividend stocks on the market that are as well-recognized in Canada as Enbridge (TSX:ENB). Enbridge is an energy infrastructure behemoth, operating one of the largest and most complex pipeline systems on the planet.
That pipeline business is powered by long-term contracts, hauling one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S.
That fact alone makes Enbridge one of the most defensive picks on the market. What pushes the stock even further is its complementary business units, which include a natural gas utility and a renewable energy portfolio. Both offer a similarly regulated structure providing a stable and recurring revenue stream that leaves room for growth and a handsome dividend payout.
As of the time of writing, Enbridge’s quarterly dividend pays out an impressive 5.60%. The company also boasts over three decades of consecutive annual increases to that dividend.
Build your portfolio around these dividend stocks
The three stocks mentioned above offer growth appeal, strong defensive moats, reliable cash flows, and growing dividends. They can also form the foundation of any well-diversified portfolio, representing different sectors of the market.
In my opinion, one or more of these would do well in any long-term portfolio.
Buy them, hold them, and watch your portfolio grow.
