I get it. The oil industry has been hit hard in recent months and you’re fearful of oil and gas stocks. Maybe all stocks in general. It doesn’t have to be this way. There’s more to Canada’s economic engine that just energy stocks like the names of Suncor, Canadian Oil Sands, and Canadian Natural Resources for dividend investors – at least I believe so. Today’s post will highlight five other Canadian dividend paying stocks worth looking into for greedy dividend investors to buy and hold.
TransCanada (TRP)
Price as of this post: $54.70
Dividend yield as of this post: 3.8%
TransCanada’s stock price has dipped since September 2014 and the battle about the Keystone XL pipeline project remains fierce. I suggest you tune out that noise. The company is striving for a dividend growth rate close to 10% annually in the coming years. You can review their dividend history here.
National Bank (NA)
Price as of this post: $46.06
Dividend yield as of this post: 4.3%
Canada’s “big 5” banks get all the attention which is why you might want to consider the little guy on the outside looking in. National Bank has been paying quarterly dividends since 1980 and has been increasing their dividend at least once per year over the last few years since the 2008-2009 global financial crisis. You can review their dividend history here.
Bell Canada (BCE)
Price as of this post: $53.88
Dividend yield as of this post: 4.9%
Talk about a cash back rewards program. The recent Bell Canada dividend announcement represents BCE’s 11th increase to its annual common share dividend, representing a 78% increase, in the past 6 years. You can review their dividend history here.
Home Capital Group (HCG)
Price as of this post: $42.69
Dividend yield as of this post: 2%
With net income recently reported up over 20%, HCG thanked shareholders recently by increasing their dividend 10%. This latest pay raise represents a year-over-year dividend hike of 37.5%. You can read up on HCG here.
Algonquin Power (AQN)
Price as of this post: $9.35
Dividend yield as of this post: 4.7%
AQN is a renewable energy company that was founded in 1997 that regulates utility assets across North America, with investments in hydroelectric power, wind and solar power. Consider this an inflation-fighting stock since it can pass along its operating costs to customers. You can review their dividend history here.
Investing in dividend paying stocks can provide the promise of long-term steady income (i.e., passive income) but such investments can also come with risks. While dividends are great they are never guaranteed so buyer beware. As always consider working with your financial advisor or a financial professional before making any major investment decisions.
Any dividend stocks you have your eye on?
Mark
My name is Mark Seed - the founder, editor and owner of My Own Advisor. As my own DIY financial advisor, I've surpassed my goal and now investing beyond the 7-figure portfolio to start semi-retirement with. Find out how, what I did, and what you can learn to tailor your own financial independence path. Join the newsletter read by thousands each day, always FREE.
Hi, do you allow guest posting on myownadvisor.ca ? 🙂 Let me know on my email
AQN is a good choice. I never bought it but it always poped up on my monitoring list.
NA is a solid one even if it is not the bank stock I prefer the most.
I think AQN could eventually get bought out. If so, that will make for a nice payday. Until then I will collect dividends.
That’s the way. Keep up the good income :]
Thanks – I’m working on it!
Nice group of companies there. I hold 3 of the 5, BCE, NA and AQN and they’ve all done quite well for me! Each of them has raised their dividends at least once in the past year and their stocks have risen as well.
I think these are all solid companies. I suspect more dividend hikes are to come in another 12-18 months Wisp 🙂
Don’t you think transcanada is over priced.
Based on P/E, likely however 5-years from now after dividends and capital appreciation, it’s going to look cheap I suspect.
Ah! Finally another blogger who talks about NA! 😉 Been praising it for a long time but most investors get stuck to the big five banks.. NA is the one with the highest growth potential in my point of view!
Cheers!
Mike
Absolutely Mike! I’ve been loading up on NA for years. I’m looking forward to another dividend increase in the coming year!
Interesting that you mentioned HCG and AQN. AQN looks interesting due to the renewable energy aspect.
HCG has been on a tear but it also has some headwinds like all individual stocks. I could see AQN being taken over eventually. Just a hunch.
Nice picks, Mark. I am looking at AQN and really liking it. I missed out on the correction last month when it dropped after they delayed their earnings report. Should’ve initiated a small position ateast. Its back to its valuation where it was sitting for a while.
Best wishes
R2R
I think it could be a very good long term hold with lots of upside. Worse case they get bought out by a bigger player many years to come for a premium.
Thanks for the comment R2R.
Thanks for the tip on AQN. I am surprised FTS didnt make your list as a consistent div raiser.
FTS is a great dividend payer so I thought I’d just consider some others 🙂
Thanks for these tips. I am just beginning my dividend investing journey and am keenly interested in learning how to craft a self-sustaining portfolio that will serve me well in my retirement years.
Cheers,
J
Dividend stocks can be good for passive income Jason, for sure, but buyer always beware with individual securities. Diversification is always key. Thanks for stopping by.