For your Canadian income stability, you should add the best dividend stocks to your portfolio.
This dividend can pay you monthly, quarterly, and annually.
However, you necessarily do not have to choose the ones with the highest dividend payout ratios or dividend yields.
Also, as you evaluate your dividend stock picks, you should consider the company’s overall performance.
Which include its revenue growth, earnings per share (EPS), dividend growth rate, price-to-earnings (P/E) ratio, and the sustainability of its business model.
We have compiled a list of Canada’s best dividend stocks for you.
15 Best Canadian Dividend Stocks in 2022
Meanwhile, the best Canadian dividend stocks have a mix of aristocratic dividend stocks and big bank stocks.
As well as some of the best Canadian monthly dividend stocks you can buy and hold even forever.
Here are the 15 best Canadian dividend stocks you can buy and hold forever
This dividend noble stock has a stable business across North America and is Canada’s largest natural gas distribution network.
Enbridge is one of the energy sector stocks with the symbol ENB.TO.
It has a forward yield of 6.62% with a dividend Payout Ratio of 109.67%
More so, its significant cash flows support a high dividend payout ratio exceeding 100%.
However, the market cap is $102.85 billion. Also, its shares had a 10% compound annual growth rate (CAGR) over the last 26 years.
Meanwhile, the company has consistently paid dividends to its shareholders for more than 66 years.
Also, it is one of the best high-yield stocks you can buy.
Furthermore, its business includes pipelines for crude oil, natural gas transmission, gas utilities, and renewable energy.
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Fort is a utility sector dividend with FTS.TO symbol.
Fortis Inc. was established in 1885 in Newfoundland and Labrador.
It is one of the Canadian best dividend stocks that provides electricity to 3+ million customers in various markets, including Canada, the United States, and the Caribbean.
It currently has a forward dividend yield of 3.48%, a dividend payout ratio of 75.47%, and a P/E ratio is 22.05.
More so, its market cap is $27.38 billion, with an outstanding record of increasing dividends for 47 consecutive years.
It is a strong contender for one of the best Canadian dividend stocks.
Per the company’s forecast, the annual dividend growth rate until 2025 is expected to be 6% on average.
In addition, Fortis is working on reducing its carbon footprint, with a plan to reduce carbon emissions by 80% at TEP by 2035 and lower greenhouse gas emissions by 30% at its BC operations by 2030.
RBC is the largest bank in Canada based on market capitalization and also one of the best performings.
With over 17 million customers and operations in 36 countries, Royal Bank of Canada’s earnings and asset base has continued to increase for more than 50 years.
It belongs to the financial service sector with Its annual forward dividend yield for RY being 3.33% and its payout ratio being 40.72%, and a market cap of $184.05 billion.
Meanwhile, the P/E ratio for RY is 12.17.
Having been founded in 1832, the Bank of Nova Scotia is the third largest bank in Canada and one of the oldest.
This bank has an asset base surpassing $1.1 trillion and operations in Canada, the U.S., Mexico, Europe, Asia, and Australia.
Also, it owns Canada’s most popular online bank, Tangerine. It is also a financial service sector with the symbol BNS.TO
This stock is also one of the best and cheapest Canadian best dividend stocks.
However, Its forward annual dividend yield of 4.61% exceeds that of the other banks.
Also, it has a dividend payout ratio of 58.06% (higher than average for the industry).
As of the time of composing this post, the P/E ratio for BNS is 10.95.
Canadian National Resources Limited operates in Canada, the United Kingdom, Gabon, and Cote d’Ivoire.
It is represented with CNQ.TO, and it is from the Energy sector.
However, at a current price of $43.76, it has a forward dividend yield of 4.42% and pays out 52.03% as dividends with a Market Cap of $51.67 billion
Meanwhile, it is one of the world’s largest crude oil and natural gas producers.
TransAlta Renewables qualifies as one of the Canadia best dividend stocks to buy and hold for the long term.
It is represented with RNW.TO symbol emerging from the utility sector.
However, It has a dividend yield of 4.68% and an average dividend yield of 6.38% over the last 5 years.
With a dividend payout ratio of 180.76% and a market cap of $5.31 billion.
Meanwhile, it is safe, given the worldwide focus on renewable energy due to the dangers posed by climate change.
In addition, the company operates hydroelectric, gas, solar, and wind power generation plants across Canada and in the United States and Australia.
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Algonquin is represented with AQN.TO, arising from the utility sector.
Its dividend yield is 4.38%, with a dividend Payout Ratio of 55.78% over a Market Cap of $12.11 billion.
Moreover, it is a renewable energy and utility company with over 3 GW of generating capacity, including thermal, hydro, wind, and solar.
However, with a dividend yield of 4.38%, 10 years of consistent dividend growth, and $9.4 billion slated for investments through 2025, it is a solid dividend stock to buy.
BCE, formerly known as Bell Canada Enterprises, is one of the Canadian best dividend stocks as it is the largest communications company in Canada.
Also, it is a top-10 high-paying Canadian dividend stock. It is represented by BCE.TO which emerges from the Communication Services
However, its dividend yield is 5.26%, with a dividend Payout Ratio of 114.60%, and a market Cap of $60.54 billion.
In addition, it has a huge stake in the country’s media landscape with its ownership of CTV, TSN, Crave, iHeartRadio, and others.
Telus is the second largest telecommunications company on the list of Canadian best dividend stocks.
It is represented with T.TO also from the Communication Services. Also, it was a first mover with 5G network technology.
It aims to reach over 600 urban and remote communities in Canada by the end of 2022.
In addition, it has a 15.2 million customer base and has indicated plans to increase annual dividends by 7-10% until the end of 2022.
However, its dividend yield is 4.32%, with a dividend Payout Ratio of 132.24%, and a market cap of $39.82 billion.
Capital Power Corporation possesses multiple power generation facilities in Canada and the United States with 6,400 MW of generation capacity.
As such, it is recommended as one of the best Canadian dividend stocks.
This company has invested over $40 million in carbon capture research and strives to be net carbon neutral by 2050.
However, the dividend yield is 4.98%, with a dividend Payout Ratio: of 123.49%, and a market cap of $5.05 billion
Meanwhile, it is represented with CPX.TO emerging from the Utility sector.
In addition, its average dividend yield over the last 5 years exceeds 5%, which makes it a strong dividend stock pick.
Most importantly, CPX has a P/E ratio of 26.59 and recently declared a 6.8% dividend increase openly.
11. Bank of Montreal
The Bank of Montreal is one of the largest banks in Canada and the oldest, with a 204-year history.
This bank has been paying dividends since 1829.
It also has the policy to pay out 40-50% of its earnings in dividends over time.
More so, it has over 12 million customers globally.
You can expect its dividend payouts to continue without interruption as its dividend yield is 3.32%, with a dividend Payout Ratio of 39.55%, and a market cap of $83.46 billion.
However, it is represented by BMO.TO and arises from the Financial services sector.
GRT-UN represents Granite Real Estate Investment Trust.TO and emerges from the real estate sector.
However, it holds a different portfolio of 118 properties across 7 countries, including Canada, the United States, the United Kingdom, the Netherlands, and Germany.
Its dividend yield is 3.24%, with a dividend Payout Ratio of 22.98% and a market cap of $6.065 billion.
This analyses the 51.3 million square feet of leasable area in prime real estate markets around the world.
Also, its 3.24% forward annual dividend yield is decent.
As such, you can consider it as one of the best Canadian dividend stocks.
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13. National Bank
National Bank is also one of Canadian best dividend stocks as it is the 6th largest bank in Canada, with assets exceeding $350 billion.
Moreover, it’s been expanding its operations outside Quebec and currently has 389 branches and 929 ATMs across Canada as it serves 2.6 million customers.
However, it is represented with NA.TO and it emerges from the Financial service sector.
Meanwhile, its dividend yield is 2.91%, with a dividend Payout Ratio of 34.93% and a market Cap of $33.25 billion.
In addition, it aims to keep its dividend payout ratio in the 40-50% range.
Pembina Pipeline Corporation has existed for over 65 years. Also, it owns pipelines that transport oil and gas across Western Canada.
It is represented with PPL.TO and it emerges from the Energy sector.
However, its dividend yield is 6.48%, with a dividend Payout Ratio of 61.17% and a market cap of $21.74 billion.
More so, it pays out cash dividends every month.
Canadian National Railway Company was established in 1919 and transports over 300 million metric tonnes of goods annually.
The Canadian National Railway has a 20,000-mile network that spans Canada and the United States.
It is, however, represented with CNR.TO from the industrial sector.
It has invariably increased dividends over the last two decades, with its balance sheet and cash flow statements looking great.
However, its dividend yield is 1.63%, its dividend Payout Ratio of 42.20%, and a market Cap 9f $104.83 billion.
More so, as railway transportation remains a principal way to move freight across North America, the Canadian National continues to grow.
Final Thought on Best Canadian Dividend Stocks
Dividend mutual stock or Exchange-Traded Fund (ETF) holds many stocks.
It also pays out dividends similar to holding individual stocks.
Meanwhile, you can invest in Canadian best dividend stocks by either buying individual stocks directly or using Canadian dividend ETFs that hold multiple dividend stocks.
However, you must evaluate a dividend stock using the relevant fundamental and technical, analytical tools.
So as to purchase it using a discount brokerage account.
However, picking individual stocks boosts your investment risks as your portfolio could be concentrated in only a handful of securities.