Looking for the best Canadian dividend stocks to buy and hold for your portfolio in 2021?
I’ve written over 1,000 articles about Canadian TSX stocks, many of which provide dividends to its investors.
Dividend stocks are some of the best investment options in Canada.
Below are my picks for the 11 best Canadian dividend stocks for 2021 investors.
Best Canadian dividend stocks:
1. BMO stock
- Ticker: TSX:BMO
- Dividend Yield: 4.10%
- Dividend Payout Ratio: 42.22%
- Market Cap: $64.65 billion
With an outrageous dividend streak of over 190 years, BMO tops my list of most reliable Canadian dividend stock.
2. Royal Bank of Canada stock
- Ticker: TSX:RY
- Dividend Yield: 3.86%
- Dividend Payout Ratio: 45.61%
- Market Cap: $156.54 billion
RBC has increased its dividend by 40% in the last five years. As the largest bank in Canada with a large economic moat, it’s a safe bet that the dividends will likely continue for a very long time.
3. Enbridge stock
- Ticker: TSX:ENB
- Dividend Yield: 5.91%
- Dividend Payout Ratio: 99.83%
- Market Cap: $101.4 billion
A member of the dividend aristocrats, Enbridge has increased its dividends for the past 20 years. The company’s stock has also performed well, increasing about 14% over one year. With a very healthy dividend yield of 5.91%, Enbridge is very keen on returning value to its shareholders.
4. Fortis stock
- Ticker: TSX:FTS
- Dividend Yield: 3.58%
- Dividend Payout Ratio: 49.59%
- Market Cap: $23.2 billion
With most of its revenue coming from regulated rates, Fortis has a benefit of being a very low-risk stock, clocking in at an extremely low 0.14 beta. If you’re anticipating a market crash and looking to invest in a steady dividend payer, Fortis stock would be a good choice for one of Canada’s best Canadian dividend stocks.
5. BNS stock
- Ticker: TSX:BNS
- Dividend Yield: 4.72%
- Dividend Payout Ratio: 51.65%
- Market Cap: $92.77 billion
Scotiabank stock has been performing well. With its aggressive expansion into international markets, some investors were skeptical, but the strategy seems to have been paying off.
6. BCE stock
- Ticker: TSX:BCE
- Dividend Yield: 4.96%
- Dividend Payout Ratio: 94.64%
- Market Cap: $57.6 billion
As one of the leading telecoms in Canada, BCE has a built-in advantage of being an established player in a large market with few competitors. It’s tough to see a scenario where dividends would plummet for Bell. The company is a good long term buy and hold.
7. Telus stock
- Ticker: TSX:T
- Dividend Yield: 4.65%
- Dividend Payout Ratio: 76.91%
- Market Cap: $30.05 billion
After adding 154,000 new customers in 2019, Telus is well-positioned for its goals of increasing dividends by 7% to 10% by 2022.
8. Transcontinental stock
- Ticker: TSX:TCL
- Dividend Yield: 5.75%
- Dividend Payout Ratio: 61.78%
- Market Cap: $1.32 billion
After a large acquisition that shows that Transcontinental wants to become a top player in the packaging business and with a very healthy dividend yield of 5.75%, Transcontinental stock is one of my best Canadian dividend stock picks.
9. The North West Company stock
- Ticker: TSX:NWC
- Dividend Yield: 4.75%
- Dividend Payout Ratio: 68.06%
- Market Cap: $1.35 billion
With an attractive dividend yield of 4.75%, this discount store operator can provide income while allowing room for stock appreciation as price margins are expected to increase.
10. Suncor stock
- Ticker: TSX:SU
- Dividend Yield: 4.0%
- Dividend Payout Ratio: 50.94%
- Market Cap: $64.71 billion
There’s a reason why 10.5 million shares of Suncor stock has been purchased by Warren Buffett earlier this year. He’s bullish on energy, and Suncor is definitely the company you want to bet on if you feel energy will climb.
11. Pembina stock
- Ticker: TSX:PPL
- Dividend Yield: 5.02%
- Dividend Payout Ratio: 74.92%
- Market Cap: $24.42 billion
Pembina is unique because it pays a monthly dividend instead of quarterly. It has also increased dividends in the last eight years, which is a great indicator of financial health.
12. Granite REIT stock
- Ticker: TSX:GRT-UN
- Dividend Yield: 4.1%
- Dividend Payout Ratio: 34.79%
- Market Cap: $3.66 billion
With 85 investment properties spanning the globe and increased dividends since 2012, Granite REIT is one of my picks for best Canadian dividend stock.
How to buy Canadian dividend stocks
My favourite ways to buy dividend stocks in Canada are the following:
| Image | Product Title | Features | Price |
|---|---|---|---|
Editor’s Choice  | Wealthsimple Trade |
| $50 Signup Bonus |
Reliable Pick  | Questrade |
| $50 Free Stock Trades |
To learn more, read my breakdown of the best trading platforms in Canada here.
Conclusion
I chose these stocks because they span multiple industries in Canada, and are known for their track record and reliability.
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Not exactly so. Let’s say you have $10,000 to invest. If you invest in a $15 stock that made you a profit of $3/share, you both have earned more in percentage as well as risked less capital, than if you invested in a $50 that yielded the same profit.
So for example, if you bought 500 shares of the $15 stock, you spent $7,500 and have more capital to buy other stocks. With $3 profit per share your profit would be $1,500 (20%). If, on the other hand, you wanted to buy the $50 stock — with $10,000 you could only buy 200 shares, have no more capital left to buy other stocks, and your profit at $3 a share would be $600 (6%).
Thanks Lily, yes it’s the percentage gain that matters, not the dollar gain of the stock. In your example, your first $15 stock made a much larger percentage gain than the $50 stock so yes, it was a better investment.
Hello, just wanted to mention, I loved this blog post.
Thanks Errol! Glad you enjoyed it.
How good are these returns? Well, let’s just say that the S P 500, inclusive of dividends and when adjusted for inflation, has historically returned 7% annually, with the Dow closer to 5.7% a year, on average, over its 123-year history.
How about some we can afford?????
Obviously.only for the rich………jeez.
hi Ron, thanks for your input. Transcontinental for example is trading at $13.94 per share, so it should be affordable for whatever amount you’re looking for.
A share’s price does not reflect its affordability. The more expensive the stock, the fewer shares you need to buy in order to invest the money you have.
Hi Nissim, thanks for the reply! Yes that’s what I was trying to get at with my answer. To some investors it’s tough to detach in their mind value from share price.