There is a reason why investors become nervous when a company lowers its dividend, because such a movement often reflects deeper problems behind the scenes. Of BCE (TSX: BCE), the decision to reduce its dividend to $ 1.75 per share and the 2% discount under his dividend reinvestment plan program seemed more than just a payment adjustment. I took it as a reminder that even the largest companies can sometimes stumble when they are confronted with economic pressure and rising competition.
Of course, BCE’s management justified the reduction by saying that it would create flexibility and strengthen the balance, but most income investors usually want dividend stability more than flexibility. This was especially heavy news for those who have trusted BCE as a stable source of income. And that movement asked a simple but important question – why settle for less when other Canadian dividend shares clearly yield more stable income?
In this article I will talk about two top dividend shares that I now like more than BCE for long -term income.
Canadian utilities
Let’s start with Canadian tools (TSX: CU), a reliable company that offers dividend stability with a strong pipeline of future growth. This company -based company is a subsidiary of the majority of ATCO (TSX: ACO.X). It works in the regulated utility space, which relates to electricity and the transmission and distribution of natural gas through its ATCO Energy Systems Division. CU is also a growing presence in renewable energy sources, energy storage and fuel development with low emissions via ATCO Enpower, and has large infrastructure assets in Australia.
After having won 16% in value for the past eight months, CU shares is currently traded at $ 38.51 per share with a market capitalization of just over $ 7.9 billion. The company rewards investors with every three -month dividends and offers an annual return of almost 4.8%.
Despite the current macro -economic uncertainties, CU’s income has retained it properly. In the last quarter ended in June, the adjusted income of the company rose by 5% JoJ (year-on-year) to get $ 0.45 per share. Similarly, the adapted quarterly net profit also went somewhat on YOY -based up to $ 121 million, because efficiency and stable demand continued to continue its core activities.
Where Canadian utilities really separates, it is in its long-term plans, because it continues to expand the assets of renewable energy, including hydrogen and carbon reception projects. In the meantime, the company is also involved in sustainable water and clean fuel solutions.
In short, it is a regulated utility with a clean balance, a stable yield and a route map that matches where the energy sector is going. That is a much stronger mix than what BCE offers now.
Keyera Stock
Keyera (TSX: Key) can be a different top stock that delivers a better dividend value than BCE. If you don’t know yet, it’s a MidStream energy company with a well -diversified business model. The company focuses primarily on collecting and processing natural gas, manages large liquids infrastructure and marks high -wide products such as propane, butane and condensates.
Keyera shares currently trades at $ 46.33 per share after climbing 10% in the past year, giving it a market capitalization of around $ 13 billion. At this market price it offers an annual dividend yield of 4.7%.
Lower prices In some product categories, Keyera’s income drove in the second quarter down With 6% yo -up to $ 1.6 billion. Nevertheless, the adapted three -month net profit of $ 126.5 million exceeded the expectations of Bay Street analysts of $ 94.1 million with a huge margin.
From increasing the production of ISO-o-octaan to investing in long-term transport corridors, Keyera focuses on what it does best and does it profitably. That could be one of the main reasons why the stock has risen by more than 125% in the last five years, which is remarkable for a dividend stock in the energy space.
Moreover, the well -covered dividend, solid assets and a measured Keyera Growth Plan make a strong choice for anyone who wants a reliable income for years.
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