11 Best Dividend Stocks Canada

Stocks Jul 17, 2024 10 min read
11 Best Dividend Stocks Canada

Here are 11 of the best dividend stocks for Canadian investors to consider:

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

1. Johnson & Johnson (JNJ)

Johnson & Johnson Logo

Johnson & Johnson

JNJ
NYSE

$154.30 USD

  • -0.39
  • 0.25%

Quote as of 07/22/2024 14:29 ET

  • $370,219,614,208 USD

    Market Cap

  • 12.19x

    Enterprise Value to EBITDA

  • 14.38x

    Forward PE

Metrics as of 07/22/2024 10:45 ET


 

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 R&D 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 issuing dividends, making it a desirable choice for income investors.

Its capability to generate consistent cash flow enables regular dividend payments and probable capital appreciation.

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 consistency even in tough times.

Additionally, the pharmaceutical industry is renowned for its fortitude even during touch 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 Co-The Logo

Procter & Gamble Co-The

PG
NYSE

$168.02 USD

  • +0.06
  • 0.04%

Quote as of 07/22/2024 14:29 ET

  • $397,553,795,072 USD

    Market Cap

  • 17.45x

    Enterprise Value to EBITDA

  • 24.17x

    Forward PE

Metrics as of 07/22/2024 10:45 ET


 

Procter & Gamble Company (PG), famously known as PG, is a large 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 largely due to 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.

They also 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, investors get stable and consistent returns via dividend payouts.

3. Royal Bank of Canada (RY)

Royal Bank of Canada Logo

Royal Bank of Canada

RY
TSX

$153.85 CAD

  • +1.21
  • 0.79%

Quote as of 07/22/2024 14:28 ET

  • $215,996,268,544 CAD

    Market Cap

  • N/A

    Enterprise Value to EBITDA

  • 12.1x

    Forward PE

Metrics as of 07/22/2024 10:05 ET


 

Royal Bank of Canada (RY) is a top dividend stock in Canada.

It provides stable and consistent returns for investors.

RY has a strong financial position and strong presence in the market.

The bank offers many financial services and products.

They range from personal banking to investment solutions.

RBC gives customers tailor-made solutions thanks to their experience in the industry.

Moreover, RBC has impressive dividend growth.

The bank regularly increases their dividend payouts, giving investors a steady source of income.

4. Enbridge Inc. (ENB)

Enbridge Inc Logo

Enbridge Inc

ENB
TSX

$50.54 CAD

  • +0.37
  • 0.74%

Quote as of 07/22/2024 14:29 ET

  • $106,665,926,656 CAD

    Market Cap

  • 14.58x

    Enterprise Value to EBITDA

  • 16.24x

    Forward PE

Metrics as of 07/22/2024 10:45 ET


 

Enbridge Inc. is an energy infrastructure giant from Canada.

Its pipelines transport oil, gas and other liquids across North America.

The company has 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.

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.

5. BCE Inc. (BCE)

BCE Inc Logo

BCE Inc

BCE
TSX

$45.41 CAD

  • -0.21
  • 0.46%

Quote as of 07/22/2024 14:28 ET

  • $41,617,985,536 CAD

    Market Cap

  • 9.36x

    Enterprise Value to EBITDA

  • 14.76x

    Forward PE

Metrics as of 07/22/2024 10:50 ET


 

BCE Inc. (BCE), a leading telecom company in Canada, 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.

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

6. Coca-Cola Company (KO)

Coca-Cola Co-The Logo

Coca-Cola Co-The

KO
NYSE

$64.71 USD

  • -0.58
  • 0.90%

Quote as of 07/22/2024 14:29 ET

  • $278,229,581,824 USD

    Market Cap

  • 21.13x

    Enterprise Value to EBITDA

  • 21.39x

    Forward PE

Metrics as of 07/22/2024 10:50 ET


 

Coca-Cola Company (KO) is a globally recognized beverage firm.

Its iconic Coca-Cola drink has great market share along with 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.

7. Verizon Communications Inc. (VZ)

Verizon Communications Inc Logo

Verizon Communications Inc

VZ
NYSE

$38.76 USD

  • -2.85
  • 6.86%

Quote as of 07/22/2024 14:29 ET

  • $163,487,268,864 USD

    Market Cap

  • 7.39x

    Enterprise Value to EBITDA

  • 8.23x

    Forward PE

Metrics as of 07/22/2024 10:50 ET


 

Verizon Communications Inc. (VZ) is a large U.S. telecom company.

It has a strong 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.

8. Fortis Inc. (FTS)

Fortis Inc-Canada Logo

Fortis Inc-Canada

FTS
TSX

$55.95 CAD

  • +0.33
  • 0.59%

Quote as of 07/22/2024 14:27 ET

  • $27,420,936,192 CAD

    Market Cap

  • 12.27x

    Enterprise Value to EBITDA

  • 16.7x

    Forward PE

Metrics as of 07/22/2024 10:50 ET


 

Fortis Inc., a leading Canadian utility company traded on the Toronto Stock Exchange, is found under the ticker symbol FTS.

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 operates a variety of utility assets, such as electric and gas distribution facilities, across North America.

This ensures a stable source of revenue.

Fortis 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.

9. Canadian National Railway Company (CNR)

Canadian National Railway Co Logo

Canadian National Railway Co

CNR
TSX

$167.66 CAD

  • +2.00
  • 1.21%

Quote as of 07/22/2024 14:28 ET

  • $105,392,898,048 CAD

    Market Cap

  • 14.24x

    Enterprise Value to EBITDA

  • 18.45x

    Forward PE

Metrics as of 07/22/2024 10:55 ET


 

Canadian National Railway Company (CNR) is a major player in the transportation sector.

Its reliable and efficient rail network covers North America, supporting economic growth.

CNR’s extensive infrastructure allows for the transportation of various goods, such as automotive products, grains, and more.

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 is mindful of social responsibility too.

It engages with communities and supports employee wellbeing through initiatives focusing on health and safety, demonstrating CNR’s holistic approach to making a positive impact beyond profit-making.

10. Exxon Mobil Corporation (XOM)

Exxon Mobil Corp Logo

Exxon Mobil Corp

XOM
NYSE

$115.50 USD

  • -0.57
  • 0.49%

Quote as of 07/22/2024 14:29 ET

  • $514,536,144,896 USD

    Market Cap

  • 6.98x

    Enterprise Value to EBITDA

  • 12.09x

    Forward PE

Metrics as of 07/22/2024 10:55 ET


 

Exxon Mobil Corporation (XOM) is 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.

With sustainability and environmental responsibility being a priority.

11.Telus Corporation (T)

TELUS Corp Logo

TELUS Corp

T
TSX

$21.69 CAD

  • -0.02
  • 0.12%

Quote as of 07/22/2024 14:28 ET

  • $32,067,622,912 CAD

    Market Cap

  • 11.17x

    Enterprise Value to EBITDA

  • 19.05x

    Forward PE

Metrics as of 07/22/2024 10:55 ET


 

Telus Corporation, known as T, 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 up to date 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 favour dividend stocks.

Unlike growth stocks that reinvest profits for future growth, dividend stocks distribute earnings.

This can be attractive for 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 can 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.

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 important 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 thoroughly research before investing in dividend stocks, considering both the company’s financials and its position within the industry.

DISCLAIMER: This is not investment advice. Recommendations are for educational purposes only, presented as a path for you to further research. Please seek independent financial advice before making any financial decisions. PiggyBank is not liable for any investment decisions you make based on the information presented on this website.

Frequently Asked Questions

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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.

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.

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.

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.

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.

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.

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