3 Top Dividend Stocks to Buy Now

Written by Nicholas Dobroruka at The Motley Fool CanadaThere’s no denying that it’s been an important 12 months for Canadian traders. The S&P/TSX Composite Index is up shut to 20% 12 months to date and greater than 25% over the previous 12 months. The present bull run has pushed valuations of many shares sky excessive, which makes me cautious as an investor, at the least within the quick time period. As a long-term investor, I’m not overly involved with right this moment’s valuation. But within the quick time period, the market’s costly valuation does have an effect on my investing technique. As extra of a progress investor myself, the vast majority of my present holdings include shares buying and selling at a price-to-sales (P/S) ratio above 20. So, I’m comfy taking over dangers in high-priced shares if there may be progress potential over the long run. Some of the highest progress shares on the TSX are actually buying and selling in a spread that I’m starting to be uncomfortable with. Steep valuations don’t make me query the standard of a enterprise that I’m contemplating investing in; it simply implies that I’m not essentially prepared to choose up shares at these costs. There are extra shares than I’d like in my portfolio buying and selling at a P/S above 50 proper now. I’m undoubtedly not going to promote any of these based mostly on valuation alone, however I received’t be including to any of these positions at these costs both. (*3*) in dividend sharesThe market’s present valuation has me looking extra for value-oriented buys proper now. Even although the market as a complete has been on fireplace this 12 months, there are nonetheless areas on the TSX that you could find bargains in.Searching via an inventory of blue-chip dividend shares is a good place to begin if you happen to’re in search of worth right this moment. I’ve put collectively an inventory of three dividend shares which might be on the prime of my watch listing. Algonquin Power & Utilities Utility firms are among the most reliable shares traders can personal. These are shares that you may depend on regardless of the situation of the economic system. Where Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) differs from its friends is its presence within the rising renewable power sector. It provides its clients entry to wind, hydro, and photo voltaic renewable power options. That’s one of many the explanation why the inventory has been in a position to return market-crushing positive aspects of 70% over the previous 5 years.Story continuesAt right this moment’s inventory value, this dividend inventory yields a powerful 4.3%. You received’t discover many dividend shares yielding above 4% that even have a powerful monitor document of outperforming the market.TelusTelus (TSX:T)(NYSE:TU) is one other regular dividend inventory with a progress component to it over the following decade. The telecommunications inventory has trailed the market lately, however that would change very quickly. We’re nonetheless within the early levels of the growth of 5G know-how in Canada. As that continues to develop, so ought to the demand for Telus’s companies, together with its inventory value.In the meantime, whereas traders look forward to the market-beating progress to return, there’s a 4% dividend yield to earn passive earnings from. ScotiabankYou can’t discuss prime dividend shares on the TSX and never point out the Canadian banks. The Big Five not solely personal among the highest yields available on the market right this moment, however among the longest payout streaks, too.At a dividend yield of 4.6%, Scotiabank (TSX:BNS)(NYSE:BNS) is the highest-yielding Canadian financial institution. Not solely that, nevertheless it’s been paying a dividend to its shareholders for shut to two centuries.If the dividend yield and payout streak aren’t sufficient to put this $100 billion financial institution in your watch listing, possibly its valuation is. It’s buying and selling at a really beneficial ahead price-to-earnings ratio of solely 10 proper now.The publish Passive Income: 3 Top Dividend Stocks to Buy Now appeared first on The Motley Fool Canada.This Tiny TSX Stock Could be Like Buying Tesla in 2001Our staff of diligent analysts at Motley Fool Stock Advisor Canada has recognized one little-known public firm based proper right here in Canada that’s on the cutting-edge of the area business and lately accomplished a transformational acquisition, all whereas making a good-looking revenue within the course of!The better part is that in a market the place many shares are promoting at all-time-highs, this inventory is buying and selling at what seems to be like a VERY cheap valuation… for now.Click right here to be taught extra about our #1 Canadian Stock for the New-Age Space RaceMore studyingFool contributor Nicholas Dobroruka has no place in any of the shares talked about. The Motley Fool recommends BANK OF NOVA SCOTIA and TELUS CORPORATION. 2021


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