That trust is crucial. Markets are volatile. Interest rates keep changing and investors need to be able to distinguish sustainable dividend payers from yield traps. Fortunately, there is no shortage of great dividend stocks for investors to consider buying.
Here are three of those great dividend stocks from different sectors of the economy that every Canadian should consider taking a position in.
Choice #1: Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) is one of the big bank stocks that offers something its peers can’t. Not only does Scotiabank offer one of the highest returns compared to the other major banks, but it also has a larger international segment fueling growth from markets outside of Canada.
These markets tend to outperform over time, and Scotiabank is in the midst of shifting its growth focus from more volatile markets in Latin America to mature developed markets in the US and Mexico.
That growth contributes to the bank’s dividend, which is the real reason Canadian investors are turning to dividend stocks like Scotiabank. At the time of writing, Scotiabank offers a yield of 4.17%, making it a solid option for investors looking for income from dividend stocks.
Choice #2: Emera
While Scotiabank offers dividends and growth, Accept (TSX:EMA) offers stability and defensive appeal. As a utility, Emera generates predictable cash flows, allowing it to invest in growth and cover its quarterly dividend.
The company has a portfolio of operations in Canada, the US and the Caribbean. The vast majority of these assets are regulated, providing additional defensive appeal. The company also continues to invest in regulated infrastructure, fueling future growth.
In terms of earnings, Emera has paid reliable dividends for decades and achieved annual increases. At the time of writing, the company offers a yield of 4.30%, making it one of the dividend stocks every portfolio needs.
Choice #3: Enbridge
There are a few dividend stocks on the market that are as well recognized in Canada as Enbridge (TSX:ENB). Enbridge is an energy infrastructure giant that operates one of the largest and most complex pipeline systems in the world.
These pipeline activities are powered by long-term contracts, which transport one-third of all crude oil produced in North America and one-fifth of the U.S.’s natural gas needs.
That fact alone makes Enbridge one of the most defensive choices on the market. What drives the stock even further are its complementary business units, including a natural gas company and a renewable energy portfolio. Both offer a similar regulated structure that provides a stable and recurring income stream that leaves room for growth and a nice dividend payout.
At the time of writing, Enbridge’s quarterly dividend pays out a whopping 5.60%. The company also boasts more than thirty years of consecutive annual increases in that dividend.
Build your portfolio around these dividend stocks
The three stocks mentioned above offer growth appeal, strong defensive moats, reliable cash flows and growing dividends. They can also form the basis of any well-diversified portfolio, representing different sectors of the market.
In my opinion, one or more of these would do well in any long-term portfolio.
Buy them, hold them and watch your portfolio grow.
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