Canadian investors are lucky to enjoy considerable options when it comes to dividend stocks. You can hold income-producing stocks from a wide mix of industries and sectors.
You can likewise pick from a mix of higher-yielding stocks to lower-yielding stocks with strong dividend growth. If I had $5,000, I would consider buying a position in each of these dividend stocks.
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A leading TSX utility for dividends
AltaGas (TSX: FTS) is a top dividend stock on my list. This company has transformed from a debt-laden mix of disparate energy businesses to a simplified, low-risk combination of two quality businesses: a U.S. regulated gas utility and a Western Canadian LPG (liquefied petroleum gas) export company.
With AltaGas, you get the stability and income consistency of a utility, and long-term volume and pricing upside from increasing Asian demand for LPG products. The company has attractive high single-digit growth prospects for both segments.
Right now, AltaGas yields 2.4%. It has grown its dividend by a 6% compounded annual growth rate (CAGR) for six consecutive years.
A top real estate stock
If you want exposure to real estate, Granite Real Estate Investment Trust (TSX: GRT.UN) is known for its steady cash flows. This company has a record growing its distributions for 15 consecutive years. That dividend is well supported by a low 63% payout ratio.
Granite has 139 large-scale logistics, warehousing, and manufacturing properties in North America and Europe. Occupancy sits at 98% and long-term leases support foreseeable income.
This REIT has a market-leading balance sheet and strong cash generation. It yields 4.1% now.
Canada’s largest energy stock
Canadian Natural Resources (TSX: CNQ) ought to be on any dividend investor’s radar. You can’t argue with 26 years of consecutive dividend growth. That dividend has grown by a 20% CAGR no less!
After a year of strong energy prices, this stock is a little pricey. However, it is up because the company is generating so much cash flow. After consolidating a large part of the Canadian oil sands, Canadian Natural sits firmly as Canada’s largest and lowest-cost energy producer.
Canadian Natural stock yields 3.3% right now.
A top industrial stock for monthly dividends
If you want monthly income from a non-traditional source, Exchange Income Corp. (TSX: EIF) is an interesting stock. Exchange is an industrial company that operates a mix of aviation, aerospace, and manufacturing businesses.
Given its focus on providing essential air services to Canada’s north, it is well-positioned for major infrastructure and defence investments in the region.
Exchange has increased its dividend for 19 of the past 21 years. It yields 2.5% today.
A great tech play for rising income
Thomson Reuters (TSX: TRI) has a long history growing its dividend. It has raised its dividend for 33 consecutive years! That dividend has grown by a high single rate over the past five years.
Thomson Reuters provides essential legal, corporate, and tax software. Concerns about AI disruption have pulled this stock down. However, Thomson is using AI initiatives to unlock its vast data libraries.
Despite concerns, the company is generating high single-digit revenue growth and strong cash generation. This stock yields 2.4% right now.
