With Yields of More Than 5%, These Top TSX Dividend Stocks Are Worth Watching

收益率超过5%,这些多交所顶级股息股值得关注
Published on: Oct 25, 2024
Author: Amy Liu

Retired individuals and other income-focused investors are on the lookout for high-quality Canadian dividend stocks. If you have some cash to invest, these reasonably priced high-yield dividend stocks are worth considering.

First up is Toronto-Dominion Bank (TSX: TD). By market capitalization, it is the second-largest bank in Canada, known for its extensive branch network in the domestic market. Interestingly, TD actually has more branches in the United States. Issues with its U.S. operations have raised concerns among investors for some time and have been a significant factor in the bank’s stock price decline from around $108 at the beginning of 2022 to its current level of approximately $78.

TD has to pay about $3 billion in fines and is facing limitations on its assets in the U.S. market. This means the bank’s growth ambitions in the U.S. will be severely restricted for a while. The good news for investors is that the situation is now clearer. Despite these headwinds, TD remains a highly profitable bank and will find other avenues for business growth. A new CEO will take office next year, bringing a fresh perspective to the bank’s leadership. Investors will need to be patient to see how the growth strategy unfolds, but during this waiting period, you will receive a stable dividend yield of 5.2%.

Another dividend stock is Enbridge (TSX: ENB), which recently completed the final transaction of its $14 billion acquisition of three American natural gas utility companies. The addition of these assets will make Enbridge the largest natural gas utility operator in North America. Enbridge has also expanded into the export sector through the acquisition of an oil export terminal in Texas.

These new assets, along with the growing renewable energy sector, will help diversify revenue sources and complement the core oil and gas transportation business. Investors can expect to see a continued dividend growth rate in the range of 3% to 5%.

Enbridge has raised its dividend every year for the past 29 years. Investors purchasing the stock at current levels can benefit from a dividend yield of 6.4%.

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