We’ll break down how these four Canadian dividend stocks can provide ample diversification, sustainable fundamentals and an attractive total dividend yield.
A dividend energy infrastructure stock
The first dividend stock I would like to buy with $5,000 is TC Energy (TSX: PPL). This $83 billion market cap company yields 4.3% today. A $5,000 investment in TC Energy would return $52.70 per quarter or $210.80 annually.
TC has an excellent dividend growth record. It has increased its annual dividend for 25 years in a row. It expects to continue to increase that dividend by 3 to 5% annually in the future.
TC has a very stable business. It’s one natural gas infrastructure leader in North America. Thirty percent of the gas consumed in North America flows through its assets. Nearly 98% of activities are regulated or contracted. It’s a safe, if boring, bet for passive income.
A retail real estate share
The second dividend stock to buy is First Capital Real Estate Investment Trust (TSX:FCR.UN). This $4.2 billion stock is generating a 4.6% yield today. A $5,000 investment in First Cap would earn $19.11 per month or $229.32 per year.
First Cap operates 136 urban-focused, grocery-anchored centers across Canada. This is a retail REIT with a focus on providing essential services to the local community. Its properties are in high demand. The REIT has an occupancy rate of 98% and has seen high single-digit rental growth in recent years.
First Capital just announced its second consecutive dividend increase in the past two years. With an improving balance sheet and a strong portfolio of undervalued assets, this is a solid bet for income and value.
A transportation share for monthly dividends
The third stock to buy is Mullen Group (TSX:MTL). This company with a market cap of $1.4 billion pays a dividend yield of 5.1%. A $5,000 investment in Mullen Group would return $21.35 per month or $256.20 per year.
Mullen operates a network of transportation and logistics companies in Canada and the western United States. While this can be a cyclical business, Mullen has done a good job of diversifying into more stable market segments. This has allowed the company to be relatively resilient in some tough freight markets in recent years.
Mullen has a history of periodically raising its dividend, especially when markets improve. The modest payout ratio suggests the dividend is safe.
An energy share with a low risk
One last stock to buy with $5,000 is Topaz energy (TSX:TPZ). This $4.5 billion market cap stock yields 4.7% today. A $5,000 investment in Topaz would return $58.14 per quarter or $232.56 per year.
Topaz operates a hybrid royalty/infrastructure business. The company owns acreage in some of the top production regions in Western Canada. The company has an efficient operational platform and a smart acquisition strategy.
It has increased its dividend nine times since its initial public offering in December 2020. Energy stocks appear to be gaining momentum again, and this is a low-risk dividend strategy to gain exposure.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| TC Energy | $79.88 | 62 | $0.85 | $52.70 | Quarterly |
| First capital REIT | $19.83 | 252 | $0.07583 | $19.11 | Monthly |
| Mullen Group | $16.38 | 305 | $0.07 | $21.35 | Monthly |
| Topaz energy | $29.12 | 171 | $0.34 | $58.14 | Quarterly |
Prices as of January 29, 2025
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