Income-seeking investors who pick the best Canadian dividend stocks are often rewarded over the longer term. That’s thanks to longstanding dividend growth and higher yields backed by reliable businesses with decades of experience.
Prospective investors looking to add some of those dividend stocks to their portfolios have no shortage of options to choose from.
In my opinion, here’s a look at three worth considering today.
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Invest in stability and growth
The first of those best Canadian dividend stocks to consider is Canadian Utilities (TSX:CU). Canadian Utilities is one of the larger utility stocks on the market.
The company operates regulated utility businesses with operations located in Canada, Australia, and Puerto Rico. By providing a necessary service, Canadian Utilities is able to generate a recurring, stable revenue stream that is less dependent on what the market is doing.
That recurring revenue helps support ongoing investment in growth initiatives and Canadian Utilities’ quarterly dividend.
As of the time of writing, that dividend carries a yield of 3.6%. That’s not the highest yield, but that’s where the other key advantage of investing in Canadian Utilities comes into play.
Canadian Utilities has provided investors with annual increases to that dividend for 54 consecutive years without fail. That’s the longest dividend increase streak in Canada and makes Canadian Utilities one of just two Dividend Kings in Canada.
This stock offers income and international exposure
No list of the best Canadian dividend stocks would be complete without at least one of Canada’s big bank stocks. Bank of Nova Scotia (TSX:BNS) is the bank for investors to consider adding to that list.
Scotiabank is the most international of Canada’s big banks. This means the bank offers an alternative to its domestic branch network that offers long-term growth potential.
In recent years, that growth focus has shifted from volatile Latin American markets to more mature markets such as the U.S. and Mexico.
That shift is already showing promise and helps Scotiabank maintain its attractive quarterly dividend. As of the time of writing, Scotiabank offers a yield of 3.5%, which is the highest among its big bank peers. The bank has also paid that dividend for well over a century.
For investors seeking one of the best Canadian dividend stocks to own, Scotiabank offers a defensive domestic segment, a growing international segment and a stable, growing dividend.
Consider a higher monthly yield
Wrapping up the trio of the best Canadian dividend stocks is a REIT. SmartCentres REIT (TSX:SRU.UN) is a retail-focused REIT catering to essential retail properties located across markets in Canada.
That retail segment includes a close relationship with Walmart, which is an anchor tenant for many of those properties. This provides SmartCentres with a boost to foot traffic that translates into strong results and an attractive monthly distribution.
That distribution currently carries a yield of 6.7%, making it one of the better-paying options on the market.
Beyond its portfolio of retail-focused sites, SmartCentres is also branching out into mixed-use properties. This gives SmartCentres an additional growth path beyond its retail-focused portfolio.
These are the best Canadian dividend stocks I’d buy now
There’s no shortage of great dividend stocks on the market. What makes the trio mentioned above some of the best Canadian dividend stocks to own comes down to what they can offer investors.
Canadian Utilities provides stability and dividend growth. Scotiabank adds recurring bank income and international upside. SmartCentres delivers a higher monthly yield and long-term growth.
Together, they provide exposure to multiple segments along with some defensive appeal.
This makes them, in my opinion, some of the best stocks to own right now.
