4 High-Yielding Canadian Dividend Stocks to Buy Right Now

Given their high yields and stable cash flows, these four Canadian dividend stocks provide excellent buying opportunities for income-seeking investors.

Watch for the Warning Signs Stock Market Prices Trends 3d Illustration

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn moresdf

Your portfolio is incomplete without a few high-quality dividend stocks. These companies deliver a regular passive income stream and are less volatile compared to non-dividend paying stocks. Further, dividends help in mitigating some of the losses in case of capital erosion. So, if you are looking to invest in dividend stocks, here are four high-yielding TSX-listed stocks you can buy right now.

TC Energy

Despite the pandemic’s impact, TC Energy (TSX:TRP)(NYSE:TRP) had raised its quarterly dividends by 7.4% to $0.87 per share last month. It was the 21st consecutive year of dividend hike by the company. The company’s low-risk, highly contracted business delivers steady cash flows, which allows the company to raise its dividends consistently. Currently, the company’s dividend yield stands at 6%.

Meanwhile, TC Energy is progressing with its $20.2 billion secured capital program, with around $7.8 billion worth of projects are already under the developmental stage. These investments could boost the company’s financials in the coming years. So, the company’s management hopes to increase its dividends at a 5-7% rate for the next few years. Along with its steady cash flows and high dividend yield, the energy sector’s strong recovery makes TC energy a strong buy for income-seeking investors.

Pembina Pipeline

After a tough 2020, Pembina Pipeline (TSX:PPL)(NYSE:PBA) has bounced back strongly this year, with its stock price rising close to 27%. The recovery in energy demand amid improved economic activities has driven the company’s stock price. Meanwhile, the company earns around 94% of its adjusted EBITDA from its fee-based and take-or-pay contracts, which provides stability to its cash flows.

Further, the company has planned to make capital investments of $785 million this year, which could boost its revenue and cash flows this year. Supported by these investments and its low-risk, contractual businesses, the management projects its 2021 adjusted EBITDA to come in the range of $3.2 billion to $3.4 billion.

So, I believe the company’s dividends are safe. Currently, the company pays monthly dividends of $0.21 per share, with its forward dividend yield standing at an impressive 6.6%.

BCE

Given its business’s highly-defensive nature, BCE (TSX:BCE)(NYSE:BCE) is one of the best dividend stocks to buy right now. Despite the pandemic, the company added 147,000 new connections in its recently announced fourth-quarter earnings and generated $2.4 billion of adjusted EBITDA. Further, the company raised its quarterly dividends by 5.1% to $0.875 per share, with its forward dividend yield currently standing at 6%.

Meanwhile, the company has planned to make $1 billion to $1.2 billion capital investment over the next two years to expand its broadband fiber and wireless networks. The company’s management expects to double its 5G population coverage and add 900,000 new direct fiber and wireless home internet connections this year. Further, the company had access to $3.8 billion of liquidity at the end of the quarter. So, I believe the company could continue raising its dividends.

Canadian Utilities

My final pick is Canadian Utilities (TSX:CU), a utility company that has raised its dividends for the last 49 consecutive years. The stable cash flows from its low-risk utility businesses and highly-contracted power generation facilities have allowed the company to raise its dividends. The company sells around 89% of its power through long-term contracts, which shields its financials from price and volume fluctuations.

Further, the company’s management plans to invest around $3.2 billion over the next three years in regulated utility and contracted energy infrastructure projects, which could boost its earnings and cash flows. So, I am bullish on Canadian Utilities. Besides, the company currently pays quarterly dividends of $0.4398 per share, representing a forward dividend yield of 5.5%.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends PEMBINA PIPELINE CORPORATION. Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned.

More on Dividend Stocks

growing plant shoots on stacked coins
Dividend Stocks

5 Dividend Stocks to Buy With Yields Upwards of 5%

These five companies all earn tonnes of cash flow, making them some of the best long-term dividend stocks you can…

Read more »

funds, money, nest egg
Dividend Stocks

TFSA Investors: 3 Stocks to Start Building an Influx of Passive Income

A TFSA is the ideal registered account for passive income, as it doesn't weigh down your tax bill, and any…

Read more »

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

3 of the Safest Dividend Stocks in Canada

Royal Bank of Canada stock is one of the safest TSX dividend stocks to buy. So is CT REIT and…

Read more »

Growing plant shoots on coins
Dividend Stocks

1 of the Top Canadian Growth Stocks to Buy in February 2023

Many top Canadian growth stocks represent strong underlying businesses, healthy financials, and organic growth opportunities.

Read more »

stock research, analyze data
Dividend Stocks

Wherever the Market Goes, I’m Buying These 3 TSX Stocks

Here are three TSX stocks that could outperform irrespective of the market direction.

Read more »

woman data analyze
Dividend Stocks

1 Oversold Dividend Stock (Yielding 6.5%) to Buy This Month

Here's why SmartCentres REIT (TSX:SRU.UN) is one top dividend stock that long-term investors should consider in this current market.

Read more »

IMAGE OF A NOTEBOOK WITH TFSA WRITTEN ON IT
Dividend Stocks

Better TFSA Buy: Enbridge Stock or Bank of Nova Scotia

Enbridge and Bank of Nova Scotia offer high yields for TFSA investors seeking passive income. Is one stock now undervalued?

Read more »

Golden crown on a red velvet background
Dividend Stocks

2 Top Stocks Just Became Canadian Dividend Aristocrats

These two top Canadian Dividend Aristocrats stocks are reliable companies with impressive long-term growth potential.

Read more »