Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

4 Top Canadian Dividend Stocks to Buy With $400 in August 2021

Published 2021-08-03, 01:34 p/m
4 Top Canadian Dividend Stocks to Buy With $400 in August 2021
ALA
-

I have said many times before that adding top-quality dividend stocks to your portfolio not only enhances your returns but also adds stability. Dividend-paying companies generate resilient earnings and cash flows that support higher payments and make them immune to wild market swings.

So if you can spare $400, let’s take a look at four such companies with an ex-dividend date in August 2021.

Canadian Utilities With an ex-dividend date of August 4, Canadian Utilities (TSX:CU) is a top stock to add to your portfolio. It has consistently enhanced its shareholders’ returns and increased its dividends for 49 years in a row. Canadian Utilities’ robust dividend payments are backed by low-risk and high-quality utility assets that generate predictable cash flows.

Notably, Canadian Utilities continues to invest rate-regulated and long-term contracted assets, which is likely to strengthen its earnings base and drive future payouts. Furthermore, the momentum in the energy infrastructure business and cost efficiencies are expected to support higher dividend payments. At current price levels, Canadian Utilities offers a solid yield of 4.8%.

Enbridge Enbridge (TSX:ENB)(NYSE:ENB) has its ex-dividend date on Aug. 12. The energy infrastructure company is famous for its robust dividend payouts and high yield. Enbridge is paying dividends for more than 66 years, while it raised the same at a CAGR of 10% in the last 26 years, which is incredible. At current price levels, Enbridge offers a stellar yield of 6.8%.

I believe Enbridge’s strong secured capital program, momentum in the gas and renewable power business, recovery in mainline throughput, and contractual arrangements position it well to deliver solid cash flows, which in turn, could continue to boost higher dividend payments. Moreover, a favorable long-term energy outlook bodes well for future growth.

Fortis Investors could consider buying Fortis (TSX:FTS)(NYSE:FTS) stock for a growing dividend income stream. The utility company has its ex-dividend date on Aug. 18 and offers a solid dividend yield of 3.6% at current price levels. Like Canadian Utilities, Fortis also has a long history of increasing its dividends (to be precise, it has raised dividends for 47 consecutive years) and remains on track to hike it further in the coming years.

Fortis projects its annual dividends to grow at a compound annual growth rate of 6% over the next five years. Its growing rate base, diversified and predictable cash flows, strategic acquisitions, and infrastructure investments are likely to cushion its profits and cash flows, in turn, drive its dividend payments.

AltaGas AltaGas (TSX:ALA) is another solid bet for income investors. Its balanced portfolio of high-growth midstream business and low-risk utility assets positions it well to consistently boost its shareholders’ returns through increased dividend payments. Notably, AltaGas offers monthly payouts and has its ex-dividend date on Aug. 24.

AltaGas’ utility business generates stable cash flows. Besides, rate base growth, customer additions, and cost reduction initiatives augur well for future growth.

Furthermore, the integration of Petrogas, access to the premium Asian markets, increased global export volumes, and long-term contracts are likely to fuel growth at its midstream business. AltaGas offers a dividend yield of 3.8%, which is highly reliable.

The post 4 Top Canadian Dividend Stocks to Buy With $400 in August 2021 appeared first on The Motley Fool Canada.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends ALTAGAS LTD. and FORTIS INC.

This Article Was First Published on The Motley Fool

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.