3 Top Canadian Dividend Stocks to Buy Right Now

3 Top Canadian Dividend Stocks to Buy Right Now

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It’s been an incredibly strong year for Canadian stocks. The S&P/TSX Composite Index is up over 15% since the beginning of the year. 

Many top growth stocks are soaring at all-time highs, but so are their valuations. It’s not uncommon to see a growth stock trading at a price-to-sales ratio above 30. 

While I certainly own my share of high-priced growth stocks in my portfolio, the market’s high price has me searching for more dependability in my next buy. 

Here are three top dividend-paying companies that are at the top of my watch list right now. 

Bank of Montreal

The Big Five may be all the trading near all-time highs, but they’re still an affordable buy today. They also own some of the top dividends you’ll find on the TSX.

Shares of Bank of Montreal (TSX:BMO)(NYSE:BMO) are up a market-beating 30% year to date. Even after its impressive run through the first six months of the year, the dividend stock is still only trading at a forward price-to-earnings ratio of barely over 10. 

But it’s the bank’s dividend that has it on my radar right now. Its 3.3% yield isn’t the highest you’ll find on the TSX, but its payout streak is. 

Bank of Montreal has been paying a dividend to its shareholders for more than 190 years. So if you’re looking to be a dependable passive income stream, this stock should be at the top of your list.

Brookfield Infrastructure Partners

This dividend stock may demand a steeper price, but its growth potential should help offset that.

Shares of Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) are up a market-beating 100% over the past five years. That’s good enough for just about doubling the growth that BMO stock has delivered. 

Brookfield Infrastructure Partners can’t match a dividend payout streak of 190 years, but it does yield close to 4%. At today’s price, the stock’s annual dividend earns shareholders a yield of 3.7%.

For any investor looking for exposure to the real estate market, this is an excellent way to do so. Brookfield Infrastructure Partners has a global presence, with investments across a wide range of businesses, including transportation, utilities, and data centres, to name a few.

Manulife Financial

Last on my list is a Dividend Aristocrat with a 4.5% yield. It may not light the world on fire with its growth, but it’s a great option for anyone looking to build a passive income portfolio.

Manulife Financial (TSX:MFC)(NYSE:MFC) is the largest insurance provider in the country. It’s not the fastest-growing industry, but it is a reliable one. It’s also an industry that I don’t see disappearing anytime soon.

Shareholders of this dividend stock sacrifice stock price appreciation for a top dividend yield. At today’s stock price, Manulife Financial’s annual dividend of $ 0.90 per share yields just above 4.5%. 

The dependability of the insurance industry is why I have Manulife Financial on my radar right now. I’m betting that the demand for insurance will be just as high in a decade’s time as it is today.  

The reason why that’s important is that I’m looking to build a passive income stream that I can count on. And as long as consumers and businesses across the globe depend on insurance policies, this is one dividend that I’m comfortable counting on.

The post 3 Top Canadian Dividend Stocks to Buy Right Now appeared first on The Motley Fool Canada.

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  • Want Rock-Steady Dividends for Life? Buy This 1 Bank Stock Right Now

Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.

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