Some stocks pay dividends, which are payments made to shareholders. As an investor, you can take these payments in cash to use as income. Or you can spend your dividends on more stocks and bonds to grow your portfolio. If your investment strategy calls for dividend securities, you’ll want to fill your portfolio with stocks that pay the highest dividends.
A word of warning about picking stocks
All investing comes with some risk, but picking stocks is especially risky. We don’t endorse any of one stock because there’s no guarantee that any of these stocks will continue to pay dividends. In fact, there’s no guarantee that they won’t go out of business tomorrow. We simply can’t predict the future, no matter how steady their past has been.
It’s generally safer (but never totally safe) to diversify your investments across the entire stock market using Exchange Traded Funds (ETFs). Use an automated investing platform to manage the entire process for you so you can sit back and watch your money grow. And you should never rely on a portfolio of all stocks. That’s far too risky.
The best dividend stocks in Canada
The following is a list of the best dividend stocks in Canada, starting with the highest dividend. We chose these stocks not just because they pay well, but also because they have a history of dividend stability as well as a little growth. Make sure to buy them through a commission-free trading platform so you don’t burn all of your cash on fees.
1. Enbridge Inc. (ENB.TO)
Dividend yield: 6.25%
Market cap: $105 billion
Industry: Energy
2. TransAlta Renewables Inc. (RNW.TO)
Dividend yield: 5.99%
Market cap: $4.1 billion
Industry: Renewable energy
3. Canadian Imperial Bank of Commerce (CM.TO)
Dividend yield: 5.76%
Market cap: $48 billion
Industry: Banking
4. Keyera Corp. (KEY.TO)
Dividend yield: 5.58%
Market cap: $7.4 billion
Industry: Energy
5. Capital Power Corporation (CPX.TO)
Dividend yield: 5.5%
Market cap: $3.7 billion
Industry: Utilities
6. BCE Inc. (BCE.TO)
Dividend yield: 5.23%
Market cap: $55 billion
Industry: Communication services
7. Power Financial Corporation (PWF.TO)
Dividend yield: 5.14%
Market cap: $23 billion
Industry: Insurance
8. Great-West Lifeco Inc. (GWO.TO)
Dividend yield: 4.95%
Market cap: $31 billion
Industry: Insurance
9. Power Corporation of Canada (POW.TO)
Dividend yield: 4.84%
Market cap: $13 billion
Industry: Insurance
10. Exco Technologies Limited (XTC.TO)
Dividend yield: 4.5%
Market cap: $329 million
Industry: Manufacturing
11. Emera Incorporated (EMA.TO)
Dividend yield: 4.42%
Market cap: $13 billion
Industry: Utilities
12. National Bank of Canada (NA.TO)
Dividend yield: 3.89%
Market cap: $24 billion
Industry: Banking
13. Methanex Corporation (MX.TO)
Dividend yield: 3.69%
Market cap: $3.8 billion
Industry: Chemicals
14. Canadian Natural Resources Limited (CNQ.TO)
Dividend yield: 3.58%
Market cap: $50 billion
Industry: Energy
Research your stocks well
Buying stocks can be overwhelming, especially if you don’t know the market well. It’s important to take stock research seriously or you might end up jumping into bad deals. You’ll have to review company financial reports, study the company’s industry, and examine its leadership to decide if a particular company is a good buy. Or you could save yourself the hassle and use a robo-advisor to build a custom portfolio based on your financial goals.
