- 1 Dividends play a pivotal role in strengthening and diversifying investors’ portfolios.
- 2 A few Canadian companies have been able to generate a high volume of dividends.
- 3 With robust and scalable operations, these companies maintain profitable operations.
A dividend is one of the major income drivers for investors. These are portions of the revenue that companies distribute to their shareholders. With them, the investors are able to bring more liquidity into their portfolios. They are able to lock more profits in regular intervals with this sum. Furthermore, it strengthens the overall investment profile.
In Canada, certain companies have been able to dole out an impressive amount of dividends. As a result, they have become a favorite of many investors. They’ve grown popular not only among Canadian traders but also in the whole world. Thus, talking about a few of them makes total sense.
Canadian Dividend-Paying Stocks Users Must Know About
These companies are frontrunners who have maintained profitable operations. Their solid footing in the market enables them to generate dividends frequently.
1. Manulife Financial Corporation (NYSE: MFC)
It’s a Canadian multinational insurance company with a wide gamut of financial services. Currently, it offers a quarterly dividend of C$0.365 per share. Also, it has fantastic numbers backing its financial might The firm registered a growth of 11% in the first quarter of 2023. With a dividend yield of 5.43%, it becomes a prudent choice for investors.
2. Fortis Inc. (NYSE: FTS)
This diversified electric utility holding company operates in Canada, Central America, and the US. It netted a revenue of $437 Billion while expending just $1 Billion in the first quarter. The quarterly dividend payout is currency C$0.565 per share. Furthermore, it registered a spike in its earning and analyst are praising it as well.
3. Pembina Pipeline Corporation (NYSE: PBA)
The Canadian Pipeline Corporation specializes in natural gas operations. In its recent quarterly report, it announced a 2.3% hike. As a result, the price of the share rose to C$0.6675 per scrip. Notably, the company has been achieving dividend growth for the last 7 years consecutively. Credit Suisse appreciated the company’s overall performance boosting the confidence of investors in it.
4. The Toronto-Dominion Bank (NYSE: TD)
The multinational banking and financial service company is based in Toronto. The bank maintained the same price for which it was selling the shares in the last quarter. It stood at C$0.96 per share and continued its nine-year-long dividend growth. The yield reached 4.58% despite the announcement of the cancellation of its merger with First Horizon.
5. TELUS Corporation (NYSE: TU)
The Vancouver-based telecommunications company has been raising dividends consistently since 2004. This quarter, it announced a spike of 3.6% in its dividend with the price of C$0.3635 per share. By the end of the last year, it was a part of 17 hedge fund portfolios. The brilliant performance and report make it a valuable stock for investors.
Dividends bring an influx of earnings. They make the portfolio more valuable and provide support to the holders. It’s not very difficult to find companies that dole dividends on a regular basis. By investing in the aforementioned stocks, one can ensure long-term as well as short-term gains. They elevate the value of the holdings and make investments rewarding.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.