That said, I have long viewed the Canadian stock market as one that offers excellent opportunities for those looking for passive income for retirement or other goals.
Let’s take a look at five of the best Canadian dividend stocks that every investor should own or consider owning right now.
Fortis
Fortis (TSX:FTS) is the Canadian dividend stock I’ve probably recommended the most in recent years, but for many of the same reasons.
This leading Canadian utility giant is one of the best performing stocks in its sector, with impressive cash flows supported by strong underlying demand headwinds. With strong earnings growth (for those who believe this AI trend is real), a dividend growth track record of more than five decades in a row, and a current interest rate of 3.5%, there’s a lot to be said about how Fortis is positioned for long-term passive income generation.
Bank of Nova Scotia
In the world of the big Canadian banks it is Bank of Nova Scotia (TSX:BNS) might be my top pick for dividend investors looking for yield (and dividend growth) over time.
With a current yield of 4.4% and plenty of capital growth (as the chart above shows), Scotiabank has been a top performer over the past year. I think it can continue to deliver solid returns for long-term investors.
For those betting on a continued steepening of the yield curve and a favorable regulatory environment in Canada that will persist for years to come, Scotiabank shares are a great option for those seeking both portfolio stability and strong long-term total returns.
SmartCentres REIT
are at the higher end of the efficiency spectrum SmartCentre REITs (TSX:SRU.UN) A 6.9% investment grade yield is a yield that is very difficult to find in this market.
I’ve written a few pieces about why I think this is a good choice right now. But the overall thesis boils down to the idea that the company’s core tenant and real estate portfolio is among the most robust in the sector. For those looking to take advantage of the long-term upside that retail-focused commercial real estate can provide (while earning nearly 7% returns), this is how I would do it right now.
Enbridge
Another top Canadian dividend stock that I’ve long thought is a great place for passive income investors to hide (and earn solid returns) is Enbridge (TSX:ENB).
The Canadian pipeline giant’s shares have gotten a big boost from governments in Canada and the U.S. prioritizing fossil fuel development and energy independence goals. But with new pipelines potentially on the horizon as Canada looks to expand its list of trading partners, I think Enbridge could be an even more attractive stock from a capital growth perspective going forward.
With a dividend yield of over 6% and plenty of room for additional dividend increases over time, this is a top dividend stock that I remain bullish on over the long term.
Manulife financial
Last, but certainly not least, on this list of dividend stocks that I think are worth watching right now is none other than Canadian insurance giant Manulife (TSX:MFC).
The insurance and asset management giant’s shares have been on a tear, thanks to strong domestic performance and continued growth globally. With an increasing presence in Asia and a dividend yield of 3.4%, those who believe the yield curve will steepen even further may benefit from holding this name in the years (and decades) to come.
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