If you like dividends, Canada is blessed with a plethora of stocks to choose from. You can find dividends in almost any industry and sector. It’s a great way to diversify your income.
If you want a diversified dividend portfolio, these five stocks are worthy of investment dollars. The best part is that they are all dividend growers, so you should see your portfolio income rise over time.
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Royal Bank of Canada: A top dividend stock
Royal Bank of Canada (TSX: RY) is a top dividend stock in Canada. Not only is it Canada’s largest bank, but it also ranks as one of the top banks in the world.
It has compounded its stock by a 12% compounded annual growth rate (CAGR) over the past 10 years. RBC has a strong balance sheet with a 13% equity ratio.
Its consistent and steady operational strategy has enabled 15 consecutive years of dividend increases (other than 2020). Royal has paid a dividend for 156 years — an incredible legacy! It yields 2.67% today.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is another must-hold Canadian stock for dividends. This is Canada’s largest energy producer. Like Royal, it’s a best-in-class business.
It has decades of energy reserves and operates with factory efficiency. In fact, it can profitably generate a barrel of oil for less than $40. Anything above that is cash flow. With the Middle East crisis expected to keep energy prices elevated, it will enjoy a major cash windfall in the coming years.
Canadian Natural has raised its dividend for 26 consecutive years. It has sprinkled in some special dividends as well. It yields 4.15% today.
Fortis
Fortis (TSX: FTS) is another quintessential Canadian dividend stock. It operates nine major regulated utilities across North America.
It has a very stable business that generates reliable cash flows. However, it is investing over $28 billion over the coming five years. Fortis believes it should yield 7% compounded annual rate base growth from these investments.
It already has a record of raising its dividend for 52 consecutive years. Further single-digit dividend growth is very likely. It yields 3.3% now.
Granite REIT
If you want real estate exposure, Granite Real Estate Investment Trust (TSX: GRT.UN) is one of the very best Canadian dividend stocks. Granite owns and manages high-end logistics and manufacturing properties across Canada, Europe, and America.
The REIT has 98% occupancy, long-term leases (average over five years), quality tenants, and room for rental rate growth. This is a well-managed business that is generating reliable cash flows for shareholders.
Granite has raised its dividend for 15 consecutive years. It yields just under 4% today.
Thomson Reuters: A long-term dividend-growth stock
If you don’t mind owning software stocks in the face of AI threats, you may want to look at Thomson Reuters (TSX: TRI). It provides software and data solutions for legal, accounting, and professional services companies.
Its stock is down 25% this year. After years of trading at a premium valuation, it actually looks quite attractive at 20 times earnings today. The company has highly recurring revenues, services that are essential for its customers, and attractive high single-digit growth prospects. It is adapting new AI services to compete today.
It has raised its dividend for 33 consecutive years. This year was its fifth consecutive increase of 10%. It yields 2.7% today. It’s an intriguing bet for value, growth, and income if you can stomach the concerns about AI disruption.
