If you are looking to invest in high dividend paying Canadian stocks, then you are in the right place.
This article will bring your out Top 10 Best Canadian Dividend stocks from the perspective of an investor looking to diversify their geographical exposure.
Table of Contents
Is It Worth Investing in Canadian Dividend Stocks
If you are hailing from Ontario, British Columbia, Quebec or Alberta provinces you may be browsing online financial publication in search of Canadian investment opportunities.
I know this because I have had the questions live on this very blog Successfultradings.com from such readers north of the border.
I take this opportunity to greet the other regions as well as the readership of this blog is not limited to just the ones above.
So, Saskatchewan, Manitoba, Nova Scotia, Newfoundland and Labrador as well as New Brunswick residents, I appreciate all your support.
Or simply, you are seeking for geographical diversification into your already existing portfolio.
Whatever circumstances led you to this article, I will try to provide enough insights into the Top 10 Best Canadian Dividend stocks.
Where Do you Buy Canadian Dividend Stocks ?
I know first hand how difficult it may be for Canadian based traders to get access to reliable brokers without paying for hefty fees.
I have helped many traders in trying to create US based investing accounts with the leading platforms but some restrictions still make it diffucult or near impossible.
Therefore, if at all possible, it may be best to evaluate your frequency of trade to determine if it will be best to access the New York stock Excahnge or the local Toronto one.
The one good thing about modern investing is that company have listing globally so the best opportunities can be accessed by all investors regardless of their location.
Best Canadian Dividend Stocks To Buy in 2021
Given the above observation, I compiled all available dividend stocks on the US stock market.
As of this writing, there exactly 66.
To answer the question about the value of these Canadian dividend stock, let us scrutinize the following statistics.
The sectors distribution is the first noticeable fact in this list of best Canadian stocks to buy and hold forever.
Financials account for the majority at 40%.
Then comes the Energy sector at 18% while basic materials (13.45) and Industrials (12.6%) complete the Top 4.
The main takeaway is the diversity across a wide range of industries.
This means that depending on your personal investment goals and preferences, you can easily find suitable assets to buy your portfolio on.
Even more important is the fact that these companies are mostly large Caps thus they are very reliable with a proven record of financial results.
Highest Paying Dividend Stocks in Canada
Typically, investors tend to contrast growth stocks with dividend stocks.
However, in the case of these leading stocks from Canada, we can see that it is possible to get the best of both worlds.
Meaning, they provide both value and growth as depicted in the view below.
The chart above is comparing the basket of all top Canadian Dividend stocks to the S&P 500 or its Exchange Traded Fund SPY.
While the average dividend comes in at 3.18%, the performance over the one year period of 38.6% is quite attractive.
Even better, the PEG (Price to Earning Growth ) flashes a nice 1.65.
We know well that past performance alone is not indicative of future performance thus the EPS over the next year of 11.54% or even further over the next % years at 11% is worth your attention.
It is from this pool of stocks that we are going to pick the Top 10 Best Canadian Dividend stocks.
Our hope is that we will be updating this information over the years to include better opportunities.
In the meantime, no matter when you are reading this article, you be able to enjoy the most recent quotes for each one of these stocks.
The charts below are interactive s that you can change the timeframes to visualize them over any period of time you so elect.
Enbridge Inc | ENB.TOR
Starting with Enbridge In, our #1 Top Best Canadian Dividend stock, we will provide excerpt overview from Finviz.com describing the activities for each company.
ENB Stock Sectors of Activity
Enbridge Inc. operates as an energy infrastructure company.
The company operates through five segments: Liquids Pipelines, Gas Transmission and Midstream,
Gas Distribution and Storage, Renewable Power Generation, and Energy Services.
The Liquids Pipelines segment operates pipelines and related terminals to transport various
grades of crude oil and other liquid hydrocarbons in Canada and the United States.
The Gas Transmission and Midstream segment invests in natural gas
and gathering and processing facilities in Canada and the United States.
The Gas Distribution and Storage segment is involved in natural gas utility
operations serving residential, commercial, and industrial customers in
as well as natural gas distribution and energy transportation activities in Quebec.
The Renewable Power Generation segment operates power generating assets, such as wind, solar,
geothermal, and waste heat recovery facilities; and transmission assets in North America and Europe.
The Energy Services segment provides energy marketing services to refiners, producers, and other
customers; and physical commodity marketing and logistical services in Canada and the United States.
ENB Stock History
The company was formerly known as IPL Energy Inc. and changed its name to Enbridge Inc. in October 1998.
Enbridge Inc. was founded in 1949 and is headquartered in Calgary, Canada.
Summary on ENB Dividend Yield
Current Dividend: 6.6%
What I like:
This stock has been very resilient even in recent pandemic era. It only breached below its 200 moving average once in early 2020.
What To Look For:
Return to increasing Sales growth at the cadence of 2016 to 2020 before the pandemic.
The number of outstanding shares has been ramping up over the last past 5 years.
Should this number stabilize, more investors may begin to come on-board.
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Pembina Pipeline Corporation | PBA.TOR
Pembina Pipeline Corporation provides transportation and midstream services for the energy industry. It operates through three segments: Pipelines, Facilities, and Marketing & New Ventures. The Pipelines segment operates conventional, oil sands and heavy oil, and transmission assets with a transportation capacity of 3.1 millions of barrels of oil equivalent per day, ground storage of 11 millions of barrels, and rail terminalling capacity of approximately 145 thousands of barrels of oil equivalent per day serving markets and basins across North America. The Facilities segment offers infrastructure that provides customers with natural gas, condensate, and natural gas liquids (NGLs), including ethane, propane, butane, and condensate; and includes 354 thousands of barrels per day of NGL fractionation capacity, 21 millions of barrels of cavern storage capacity, and associated pipeline and rail terminalling facilities. The Marketing & New Ventures segment buys and sells hydrocarbon liquids and natural gas originating in the Western Canadian sedimentary basin and other basins. Pembina Pipeline Corporation was incorporated in 1954 and is headquartered in Calgary, Canada.
Summary on PBA Dividend Yield
Current Dividend: 6.1%
What I Like:
The price of this stock is still very affordable in the low 30’s.
What To Look Forward to :
The next 5year EPS is projected to be be over 24%.
Plenty of room for growth for this small size company of less than 2700 employees.
BCE Inc. | BCE
BCE Inc., a telecommunications and media company, provides wireless, wireline, Internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. The Bell Wireless segment offers wireless voice and data communications products and services. The Bell Wireline segment provides data, including Internet access and Internet protocol television; and local telephone, long distance, satellite TV service, and connectivity, as well as other communications services and products. This segment also buys and sells local telephone, long distance, data, and other services from or to resellers, and other carriers. The Bell Media segment provides conventional TV, specialty TV, pay TV, and streaming services; and digital media, radio broadcasting, out-of-home advertising services. It owns and operates approximately 35 conventional TV stations; 27 specialty and four Pay TV channels; 3 direct-to-consumer streaming services; 109 licensed radio stations; and websites. The company was formerly known as Bell Canada Enterprises Inc. BCE Inc. was founded in 1880 and is headquartered in Verdun, Canada.
Current Dividend: 5.7%
What I Like:
For a company that has been around before the 1900’s, one can only infer the robustness of its business model.
What To Look Forward To:
The telecommunications industries is about to enter an era of growth with tons of innovations brought forth by the expansion of 5G Technologies.
Video Summary of the Article
TC Energy Corporation | TRP.TOR
TC Energy Corporation operates as an energy infrastructure company in North America. It operates through Canadian Natural Gas Pipelines, U.S. Natural Gas Pipelines, Mexico Natural Gas Pipelines, Liquids Pipelines, and Power and Storage segments. The company builds and operates 93,400 km network of natural gas pipelines, which transports natural gas from supply basins to local distribution companies, power generation plants, industrial facilities, interconnecting pipelines, LNG export terminals, and other businesses. It also has regulated natural gas storage facilities with a total working gas capacity of 535 billion cubic feet. In addition, it has approximately 4,900 km liquids pipeline system that connects Alberta crude oil supplies to refining markets in Illinois, Oklahoma, Texas, and the U.S. Gulf Coast. Further, the company owns or has interests in seven power generation facilities with a combined capacity of approximately 4,200 megawatts that are powered by natural gas and nuclear fuel sources located in Alberta, Ontario, Quebec, and New Brunswick; and owns and operates approximately 118 billion cubic feet of non-regulated natural gas storage capacity in Alberta. The company was formerly known as TransCanada Corporation and changed its name to TC Energy Corporation in May 2019. TC Energy Corporation was incorporated in 1951 and is headquartered in Calgary, Canada.
Current Dividend : 5.5%
The Bank Of Nova Scotia | BNS
The Bank of Nova Scotia provides various banking products and services in Canada, the United States, Mexico, Peru, Chile, Colombia, the Caribbean and Central America, and internationally. It operates through Canadian Banking, International Banking, Global Banking and Markets, and Global Wealth Management segments. The company offers financial advice and solutions, and day-to-day banking products, including debit and credit cards, chequing and saving accounts, investments, mortgages, loans, and insurance to individuals; and business banking solutions comprising lending, deposit, cash management, and trade finance solutions to small businesses and commercial customers, including automotive financing solutions to dealers and their customers. It also provides wealth management advice and solutions, including online brokerage, mobile investment, full-service brokerage, trust, private banking, and private investment counsel services; and retail mutual funds, exchange traded funds, liquid alternative funds, and institutional funds. In addition, the company offers international banking services for retail, corporate, and commercial customers; and lending and transaction, investment banking advisory, and capital markets access services to corporate customers. Further, it provides Internet, mobile, and telephone banking services. The company operates a network of 952 branches and approximately 3,540 automated banking machines in Canada; and approximately 1,400 branches, 5,200 ATMs, and 22 contact centers internationally. The Bank of Nova Scotia was founded in 1832 and is headquartered in Halifax, Canada.
Current Yearly Dividend: 4.7%
Manulife Financial Corporation | MFC
Manulife Financial Corporation, together with its subsidiaries, provides financial products and services in Asia, Canada, the United States, and internationally. The company operates through Wealth and Asset Management Businesses; Insurance and Annuity Products; And Corporate and Other segments. The Wealth and Asset Management Businesses segment provides mutual funds and exchange-traded funds, group retirement and savings products, and institutional asset management services through agents and brokers affiliated with the company, securities brokerage firms, and financial advisors pension plan consultants and banks. The Insurance and Annuity Products segment offers deposit and credit products; individual life, and individual and group long-term care insurance; and guaranteed and partially guaranteed annuity products through insurance agents, brokers, banks, financial planners, and direct marketing. The Corporate and Other segment is involved in property and casualty insurance and reinsurance businesses; and run-off reinsurance operations, including variable annuities, and accident and health. It also manages timberland and agricultural portfolios; and engages in insurance agency, portfolio and mutual fund management, mutual fund dealer, life and financial reinsurance, and fund management businesses. Additionally, the company holds and manages oil and gas properties; holds oil and gas royalties, and foreign bonds and equities; and provides investment management, counseling, advisory, and dealer services. Manulife Financial Corporation was incorporated in 1887 and is headquartered in Toronto, Canada.
Algonquin Power & Utilities Corp. | AQN
Algonquin Power & Utilities Corp., through its subsidiaries, owns and operates a portfolio of regulated and non-regulated generation, distribution, and transmission utility assets in Canada, the United States, Chile, and Bermuda. It generates and sells electrical energy through non-regulated renewable and clean energy power generation facilities. The company also owns and operates hydroelectric, wind, solar, and thermal facilities with generating capacity of approximately 2.1 gigawatt; and regulated electric, natural gas, water distribution, and wastewater collection utility systems. It serves approximately 306,000 electric connections; 371,000 natural gas connections; and 409,000 regulated water distribution and wastewater collection utility systems in the states of California, New Hampshire, Missouri, Kansas, Oklahoma, Arkansas, Georgia, Illinois, Iowa, Massachusetts, New York, Arizona, Texas, and the Province of New Brunswick. The company was incorporated in 1988 and is headquartered in Oakville, Canada.
Summary on AQN Dividend Stock
Current Dividend: 4.5%
What I Like the Most about AQN Stock:
It is very cheap at $16 despite doubling over the last past 5 years.
What to Look For:
As the price breaks above $20, more institutions will start adding this steady Dividend provider into their portfolios which then will trigger even further growth.
TELUS Corporation | TU
TELUS Corporation, together with its subsidiaries, provides a range of telecommunications and information technology products and services in Canada. It operates through Wireless and Wireline segments. The Wireless segment offers a range of telecommunications products and services. Its wireless products and services include network revenue comprising data and voice; and equipment sales from mobile technologies. The Wireline segment includes data services revenues, such as internet protocol; television; hosting, managed information technology, and cloud-based services; customer care and business services; healthcare solutions; and home and business security, agriculture, voice, and other telecommunications services. It has 16.0 million subscriber connections, which include 9.0 million mobile phone subscribers; 1.8 million mobile connected device subscribers; 2.1 million internet subscribers; 1.2 million residential voice subscribers; 1.2 million TV subscribers; and 707,000 security subscribers. The company was formerly known as TELUS Communications Inc. and changed its name to TELUS Corporation in February 2005. TELUS Corporation was founded in 1993 and is headquartered in Vancouver, Canada.
Current Dividend: 4.5%
What I Like about TU Stock:
Almost $1 of Dividend for holding a $22 stock is very lucrative in an industry that is full of innovations in the future.
What To Look For:
Further acceleration of the yearly revenues numbers as the pandemic did not stifle the recent 5 year trend.
Canadian Natural Resources Limited | CNQ
Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, SCO, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, SCO, and NGLs reserves were 13,271 MMbbl; proved natural gas reserves were 9,465 billion cubic feet (Bcf); and total proved plus probable natural gas reserves were 15,922 Bcf. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.
Canadian Imperial Bank Of Commerce | CM
Canadian Imperial Bank of Commerce, a diversified financial institution, provides various financial products and services to personal, business, public sector, and institutional clients in Canada, the United States, and internationally. The company operates through four strategic business units: Canadian Personal and Business Banking; Canadian Commercial Banking and Wealth Management; U.S. Commercial Banking and Wealth Management; and Capital Markets. The company offers chequing, savings, and business accounts; mortgages; loans, lines of credit, student lines of credit, and business and agriculture loans; investment and insurance services; and credit cards, as well as overdraft protection services. It also provides day-to-day banking, borrowing and credit, investing and wealth, specialty, and international services; correspondent banking and online foreign exchange services; and cash management services. The company serves its customers through its banking centers, as well as direct, mobile, and remote channels. Canadian Imperial Bank of Commerce was founded in 1867 and is headquartered in Toronto, Canada.
Summary on CM Dividend Stock
Current Dividend: 4.1%
What I Like about CM Stock:
After several years of consolidation, the stock recently broke above $100 and signal a turning point.
This type of growth will surely attract new investors into this high paying Canadian Dividend stock.
What To Look Forward To:
Further growth ahead with the technical indicators flashing all Green signs.
FINAL THOUGHTS ON BEST CANADIAN DIVIDEND STOCKS
We presented the Top 10 Best Canadian dividend stocks with average yearly yield over 5%.
For a complete view of other opportunities, feel free to download our complete Canadian Dividend Stock list below.