11 Best Dividend Stocks Canada

PiggyBank Staff | September 4, 2023
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Maximize returns? Grow wealth? Dividend stocks are the way to go! Here's a guide for the top 11 picks in Canada. Get dependable income from these stocks!

The top 11 best dividend stocks funds for Canadian investors are:

1. Johnson & Johnson (JNJ)
2. Procter & Gamble Company (PG)
3. Royal Bank of Canada (RY.TO)
4. Enbridge Inc. (ENB.TO)
5. BCE Inc. (BCE.TO)
6. Coca-Cola Company (KO)
7. Verizon Communications Inc. (VZ)
8. Fortis Inc. (FTS.TO)
9. Canadian National Railway Company (CNR.TO)
10. Exxon Mobil Corporation (XOM)
11. Telus Corporation (T.TO)


1. Johnson & Johnson (JNJ)

Johnson & Johnson (JNJ) is a world-renowned multinational corporation that produces pharmaceuticals, consumer goods, and medical devices. With a broad selection of iconic brands, it has become a reputable name in the healthcare business.

The company's triumph can be credited to its dedication to modernity and excellence. J&J constantly invests in research and progress to introduce groundbreaking products. This commitment has led to the invention of life-altering drugs and cutting-edge medical gadgets that improve patient outcomes.

In addition, Johnson & Johnson boasts an impressive dividend track record. It has a long history of dishing out dividends, making it a desirable choice for income investors. Its capability to generate consistent cash flow enables regular dividend payments and probable capital appreciation.

Another remarkable aspect of Johnson & Johnson is its varied enterprise model. The firm operates in several segments, including pharmaceuticals, consumer health, and medical devices. This diversification helps reduce risks linked with one particular area and ensures constancy even in rough times.

Taking these factors into account, investing in Johnson & Johnson stock offers many advantages for investors:

  1. The firm's solid financial standing provides stability and diminishes the hazard of investment.
  2. Plus, frequent dividend payments provide a steady income stream for investors hunting for dependable returns.

Additionally, the pharmaceutical industry is renowned for its fortitude even during hard times. The demand for essential medicines and healthcare items stays constant regardless of economic changes. This makes Johnson & Johnson stock a desirable option for investors seeking long-term growth prospects.

2. Procter & Gamble Company (PG)

Procter & Gamble Company (PG), famously known as PG, is a renowned multinational consumer goods corporation. Dating back to the mid-19th century, PG has established itself as a leader in the industry. They offer a wide range of products to meet the needs of consumers worldwide.

The success of PG is because of their focus on innovation and quality. They develop new and improved products to stay up-to-date with consumer demands. From household cleaning supplies to personal care items, PG is a trusted brand.

PG stands out from competitors due to their commitment to sustainability. They strive to reduce their environmental footprint by implementing initiatives such as packaging innovations and energy-efficient manufacturing processes.

Investing in PG can bring significant financial benefits. As one of the best dividend stocks in Canada, investors get stable and consistent returns via dividend payouts. Investing in PG not only helps you grow your wealth, but also makes a positive change in society.

Don't miss this chance to join PG. With their history, innovation, sustainability efforts, and attractive dividends, investing in PG can be a great choice for investors of all levels. Grab this opportunity and secure your financial future with Procter & Gamble Company (PG)!

3. Royal Bank of Canada (RY.TO)

Royal Bank of Canada (RY.TO) is a top dividend stock in Canada. It provides stable and consistent returns for investors. RY.TO has a strong financial position with great presence in the market.

The bank offers many financial services and products. They range from personal banking to investment solutions. RY.TO gives customers tailor-made solutions thanks to their experience in the industry.

Moreover, Royal Bank of Canada (RY.TO) has impressive dividend growth. The bank regularly increases their dividend payouts, giving investors a steady source of income that keeps up with inflation.

If you're looking for dividend stocks in Canada, don't forget to include RY.TO. It's reliable and has strong market presence. Plus, it has consistent dividend growth. Invest in RY.TO now to secure your financial future. Invest in Enbridge too — their dividends are so dependable, they make Santa's naughty or nice list look unpredictable!

4. Enbridge Inc. (ENB.TO)

Enbridge Inc. is an energy infrastructure giant from Canada. Its pipelines transport oil, gas and other liquids across North America. The company has also established a strong reputation for paying dividends to its shareholders.

Enbridge's success is due to strategic investments in key projects and assets. Its extensive pipeline network enables it to benefit from the rising demand for energy resources. This is positioned for future growth.

The firm is also committed to environmental sustainability. It has invested in renewable energy projects such as wind and solar power. Enbridge works to create a cleaner and greener future while providing dependable energy services.

BloombergNEF reported that Enbridge was first in terms of reducing greenhouse gas emissions intensity among pipeline operators in 2020. This marks the firm's commitment to minimizing its environmental impact.

Ultimately, Enbridge is an attractive dividend stock in Canada due to its financial performance, investments and sustainability efforts. Investors can be sure of steady dividends while helping create a more sustainable energy future.

5. BCE Inc. (BCE.TO)

BCE Inc. (BCE.TO), a leading telecom firm in Canada, is listed on the Toronto Stock Exchange. It has a long history and a great reputation of delivering reliable, efficient services to Canadians.

Their range of services includes wireless communication, internet, TV, and home phone services. They are committed to cutting-edge tech and offer their customers the latest communication solutions.

Besides this, BCE Inc. is a popular dividend stock in Canada. Their strong financial performance enables them to reward their shareholders with consistent dividends. This makes it an attractive option for those seeking stable returns.

Moreover, BCE Inc. has a commitment to corporate social responsibility. They participate in initiatives related to sustainability, community development, and diversity & inclusion. This not only contributes positively to society but also boosts their brand value.

Investors looking for stability and growth potential should consider BCE Inc. when selecting dividend stocks from Canada.

6. Coca-Cola Company (KO)

Coca-Cola Company (KO) is a world-renowned beverage firm. Its iconic Coca-Cola drink has a great market position and big profits. The success of Coca-Cola comes from its strategic marketing and brand recognition. It's constantly investing in research and development for new items and changing customer tastes. With a wide selection of drinks, like carbonated soft drinks, juices, teas, and energy drinks, they have something for everyone.

Coca-Cola is also dedicated to corporate social responsibility. They support environmental initiatives and reducing their carbon footprint. Plus, they help promote recycling and sustainable packaging.

During WWII, American soldiers were given bottles of Coke as part of their rations. This nice gesture not only made them feel good, but also created a bond between them and the brand. To this day, Coke is still linked with happiness and companionship.

7. Verizon Communications Inc. (VZ)

Verizon Communications Inc. (VZ) is a renowned U.S. telecoms company. It has a powerful presence in the market and provides dependable services.

VZ offers a wide range of telecom solutions like wireless communication, broadband internet, and television. A well-built network infrastructure serves millions of customers in the country.

The firm is also venturing into new technologies such as 5G. This displays its commitment to progress and staying ahead of rivals.

Moreover, Verizon values customer satisfaction. It aims to offer superb service through prompt support and quick problem resolution. This dedication to the customer experience has boosted the company's good name and strong customer base.

In conclusion, Verizon Communications Inc. (VZ) keeps on being an important player in the telecoms industry. It provides dependable services, invests in cutting-edge technologies, and prioritizes customer happiness.

Plus, according to Forbes' Global 2000 list for 2021, Verizon Communications Inc. (VZ) is one of the 100 biggest public companies in the world based on revenue.

8. Fortis Inc. (FTS.TO)

Fortis Inc., a leading Canadian utility company traded on the Toronto Stock Exchange, is found under the ticker symbol FTS.TO. Its solid reputation is backed by delivering dividends to shareholders.

The company's success is due to its strong business model and reliable energy solutions. Fortis Inc. operates a variety of utility assets, such as electric and gas distribution facilities, across North America. This ensures a stable source of revenue.

What makes Fortis Inc. different is its commitment to sustainable energy. It has made investments in renewable energy projects, such as wind and solar farms, to reduce its carbon footprint while also generating extra income.

Investing in Fortis Inc. yields attractive dividends and allows investors to contribute to a greener future. By supporting the company's effort to transition to cleaner energy sources, shareholders can match their financial goals with environmental values.

Don't miss out on this opportunity! Invest in this well-respected utility company that values sustainability and produces consistent dividends. Follow other investors in recognizing the potential of Fortis Inc.'s stock and jump on this profitable chance now!

9. Canadian National Railway Company (CNR.TO)

Canadian National Railway Company (CNR.TO) is a major player in the transportation sector. Its reliable and efficient rail network covers North America, boosting the region's economic growth. CNR.TO's extensive infrastructure allows for the transportation of various goods, such as automotive products, grains, and intermodal containers.

The company is committed to innovation and regularly invests in advanced technology and sustainable initiatives to enhance its operations. Its dedication to reducing greenhouse gas emissions shows its environmental stewardship.

CNR.TO is mindful of social responsibility too. It engages with communities and supports employee wellbeing through initiatives focusing on health and safety. These efforts have been recognized nationally and internationally, demonstrating CNR.TO's holistic approach to making a positive impact beyond profit-making.

For eight years in a row, Fortune magazine named CNR.TO one of the "World's Most Admired Companies", according to Business Insider. This recognition reflects CNR.TO's financial success, strong corporate reputation, and commitment to excellence.

Canadian National Railway Company (CNR.TO) is a key part of North America's transportation landscape. It drives economic prosperity while embracing sustainability and corporate social responsibility. Its dedication makes it a leader in the industry, setting new standards for success.

10. Exxon Mobil Corporation (XOM)

Exxon Mobil Corporation (XOM): An iconic multinational oil and gas company. A century-old history of resilience and adaptability in the energy market. Committed to innovation and technological development.

Sustainability and environmental responsibility a priority. Working hard to reduce carbon footprint by investing in renewable energy sources and cleaner technologies.

Always ranking among the largest corporations globally in terms of revenue. In 2020, Forbes listed Exxon Mobil as the 9th largest public company in the world. Truly a major player in the industry.

11.Telus Corporation (T.TO)

Telus Corporation, known as T.TO, is an impressive Canadian company in the telecom sector. Its reputation for reliability and modern services has made it a major player. Telus is focused on customer satisfaction and advanced tech, setting new standards in communication.

Their commitment to excellence in the competitive market is clear. They boast an outstanding network infrastructure and provide seamless connectivity. Telus offers a wide range of services, including mobile, internet, and TV for all kinds of users and businesses.

Furthermore, they prioritize corporate social responsibility. The company engages in initiatives for environmental sustainability and community development. With philanthropic endeavors across Canada, Telus has a positive effect on society.

Telus first began in 1990 as BC Telecom Inc., serving only British Columbia. Through mergers and acquisitions, it expanded nationwide and rebranded in 1999. It has since been growing and adapting to changing customer needs.

Overall, Telus Corporation is an excellent option for investors looking for stability and growth in the telecom industry. With its strong track record for innovation and customer focus, Telus is well-positioned for long-term success in Canada.

What is a Dividend Stock?

Dividend stocks are an investment type offering regular payments – called dividends – to shareholders, often on a quarterly basis. These payments come from a company's profits, sharing the success with investors.

Investors seeking a steady income stream often favor dividend stocks. Unlike growth stocks that reinvest profits for future growth, dividend stocks distribute earnings. This can be attractive for retirees or those looking for passive income.

Plus, dividend stocks can offer capital appreciation over time. With regular income from dividends as well as potential share price growth, investors get both cash flow and gains.

When picking a dividend stock, consider factors like the company's financial stability, track record of consistent dividend payments, and industry outlook. Research and analysis can help identify companies with sustainable dividend policies.

For example, Canadian National Railway Company (CNR) has increased its dividends for 24 years in a row. This shows CNR's commitment to shareholders and makes it an appealing option for investors looking for reliable income.

In conclusion, investing in dividend stocks has its advantages in terms of providing regular income and potential growth. But, like any investment strategy, it's important to diversify and assess each opportunity based on financial goals and risk tolerance. Choose your dividend stock wisely – make sure you go for something rich and satisfying.

Key Considerations When Investing in Dividend Stocks

When investing in dividend stocks, one must carefully consider various factors. It is important to check the company's track record of paying dividends consistently, as this reflects financial stability and a commitment to rewarding shareholders. Additionally, it is essential to analyze the dividend yield, which is the annual dividend payout as a percentage of the stock price. A greater yield can offer more attractive returns.

The dividend growth rate is also important to evaluate. If there is a consistent increase in dividends over time, this suggests strong financial performance and potential for future growth. It is also important to assess the payout ratio, which compares the dividends paid out to the company's earnings. A lower ratio means the company may have the ability to raise dividends in the future.

Moreover, it is vital to consider the market conditions and economic environment, as these can affect dividend payments and stock performance. Investors should look into their own risk tolerance and investment goals, as some prefer steady but modest dividends, while others may choose higher-risk investments with potentially higher yields. Diversifying investments across different industries and sectors is also important. Additionally, understanding each company's payout schedule is key, as some pay quarterly, while others may pay semi-annually or annually.

Finally, patience is key when investing in dividend stocks as dividends provide a consistent income stream over time and allow investors to benefit from compounding returns. Pro Tip: Always do thorough research before investing in dividend stocks, considering both the company's financials and its position within the industry.

Frequently Asked Questions

Frequently Asked Questions:

1. What are dividend stocks?

Dividend stocks are shares of companies that distribute a portion of their earnings to shareholders in the form of regular cash payments. These stocks provide investors with a reliable income stream.

2. How do I choose the best dividend stocks in Canada?

When selecting the best dividend stocks in Canada, it is important to consider factors such as the company's track record of dividend payments, financial stability, and industry outlook. Additionally, analyzing the dividend yield and payout ratio can provide insights into the sustainability of the dividends.

3. What is dividend yield?

Dividend yield is a financial ratio that represents the annual dividend income received from an investment divided by the investment's current market price. It is expressed as a percentage and helps investors assess the income potential of dividend stocks.

4. How often are dividends paid?

Dividends are typically paid by companies on a quarterly basis. However, some companies may choose to pay dividends monthly, semi-annually, or annually based on their dividend policy.

5. Are dividend stocks suitable for all investors?

Dividend stocks can be a suitable investment option for investors seeking regular income and those with a long-term investment horizon. However, investors should assess their risk tolerance and investment goals before considering dividend stocks.

6. Can dividend stocks provide capital appreciation?

While dividend stocks primarily focus on providing a regular income stream through dividend payments, some dividend stocks may also have the potential for capital appreciation. This depends on various factors, including the company's growth prospects and performance in the stock market.