I’m going to dive into three of the best Canadian dividend stocks that I think long-term investors won’t want to miss. These companies have strong growth profiles and robust underlying cash flows, which support not only their current distributions but also further dividend increases over time.
With that in mind, let’s take a look at three of the higher-yielding options on the TSX that I think long-term investors should consider.
Zoncor
I’ve thought about it for a long time Zoncor (TSX:SU) more as a defensive option for investors looking for exposure to the energy sector, and it is.
However, this Western Canadian oil and gas producer has also become quite a dividend stock. A current dividend yield of over 4% and robust recent earnings growth (during a period when oil prices have fallen) have led to the kind of share price performance that investors would like to see.
Regardless of your view on the direction commodity prices will take from here on out, I think Suncor could be a profitable (and yield-friendly) addition to investors’ portfolios today.
Dream Industrial REIT
One of the best real estate investment trusts (REITs) that I still come back to, Dream Industrial REIT (TSX:DIR.UN) is another one of those potential “forever” dividend positions that I think investors can buy today and sleep well at night owning for decades.
The industrial REIT is focused on exactly that: acquiring, owning and managing hundreds of prime properties, primarily located in Canada. For those who are optimistic about the rise of same-day delivery and growth trends in the e-commerce space, I’d say Dream Industrial could be the best way to capitalize on these trends. That’s because the company’s customer base includes some of the largest and best-known players in these fields, who rent the company’s warehouses and distribution centers to operate efficiently.
With a dividend yield of 5.6% and strong underlying net operating income growth, I think this is a stock that could increase its dividend over time. So, at around $12 per share, Dream Industrial seems like a solid buy to me.
Bank of Nova Scotia
Wrapping up this list of top dividend stocks to consider buying now is that Bank of Nova Scotia (TSX:BNS).
The shares of the Big 5 Canadian bank, like those of its peers, have fallen in value over the course of this year. Much of this move has to do with a steepening yield curve, making the company’s key net interest margin (a reflection of its loan origination profitability) much more profitable.
This move supports the company’s growth profile and robust 4.3% dividend yield. With a bond-like yield that I’d argue is much better (due to the company’s aforementioned impressive capital growth profile), this is a stock I think investors can buy today and hold for decades.
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