Canada markets closed
  • S&P/TSX

    20,154.54
    -335.82 (-1.64%)
     
  • S&P 500

    4,357.73
    -75.26 (-1.70%)
     
  • DOW

    33,970.47
    -614.41 (-1.78%)
     
  • CAD/USD

    0.7802
    -0.0032 (-0.41%)
     
  • CRUDE OIL

    70.48
    -1.49 (-2.07%)
     
  • BTC-CAD

    55,982.78
    -5,398.36 (-8.79%)
     
  • CMC Crypto 200

    1,076.57
    -57.81 (-5.10%)
     
  • GOLD FUTURES

    1,764.70
    +13.30 (+0.76%)
     
  • RUSSELL 2000

    2,182.20
    -54.67 (-2.44%)
     
  • 10-Yr Bond

    1.3090
    -0.0610 (-4.45%)
     
  • NASDAQ futures

    14,991.00
    -335.00 (-2.19%)
     
  • VOLATILITY

    25.71
    +4.90 (+23.55%)
     
  • FTSE

    6,903.91
    -59.73 (-0.86%)
     
  • NIKKEI 225

    30,500.05
    +176.75 (+0.58%)
     
  • CAD/EUR

    0.6646
    -0.0031 (-0.46%)
     

4 Top Canadian Dividend Stocks to Buy With $400 in August 2021

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
Growth from coins
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.

I have said many times before that adding top-quality dividend stocks to your portfolio not only enhances your returns but also adds stability. Dividend-paying companies generate resilient earnings and cash flows that support higher payments and make them immune to wild market swings.

So if you can spare $400, let’s take a look at four such companies with an ex-dividend date in August 2021.

Canadian Utilities

With an ex-dividend date of August 4, Canadian Utilities (TSX:CU) is a top stock to add to your portfolio. It has consistently enhanced its shareholders’ returns and increased its dividends for 49 years in a row. Canadian Utilities’ robust dividend payments are backed by low-risk and high-quality utility assets that generate predictable cash flows.

Notably, Canadian Utilities continues to invest rate-regulated and long-term contracted assets, which is likely to strengthen its earnings base and drive future payouts. Furthermore, the momentum in the energy infrastructure business and cost efficiencies are expected to support higher dividend payments. At current price levels, Canadian Utilities offers a solid yield of 4.8%.

Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) has its ex-dividend date on Aug. 12. The energy infrastructure company is famous for its robust dividend payouts and high yield. Enbridge is paying dividends for more than 66 years, while it raised the same at a CAGR of 10% in the last 26 years, which is incredible. At current price levels, Enbridge offers a stellar yield of 6.8%.

I believe Enbridge’s strong secured capital program, momentum in the gas and renewable power business, recovery in mainline throughput, and contractual arrangements position it well to deliver solid cash flows, which in turn, could continue to boost higher dividend payments. Moreover, a favorable long-term energy outlook bodes well for future growth.

Fortis

Investors could consider buying Fortis (TSX:FTS)(NYSE:FTS) stock for a growing dividend income stream. The utility company has its ex-dividend date on Aug. 18 and offers a solid dividend yield of 3.6% at current price levels. Like Canadian Utilities, Fortis also has a long history of increasing its dividends (to be precise, it has raised dividends for 47 consecutive years) and remains on track to hike it further in the coming years.

Fortis projects its annual dividends to grow at a compound annual growth rate of 6% over the next five years. Its growing rate base, diversified and predictable cash flows, strategic acquisitions, and infrastructure investments are likely to cushion its profits and cash flows, in turn, drive its dividend payments.

AltaGas

AltaGas (TSX:ALA) is another solid bet for income investors. Its balanced portfolio of high-growth midstream business and low-risk utility assets positions it well to consistently boost its shareholders’ returns through increased dividend payments. Notably, AltaGas offers monthly payouts and has its ex-dividend date on Aug. 24.

AltaGas’ utility business generates stable cash flows. Besides, rate base growth, customer additions, and cost reduction initiatives augur well for future growth.

Furthermore, the integration of Petrogas, access to the premium Asian markets, increased global export volumes, and long-term contracts are likely to fuel growth at its midstream business. AltaGas offers a dividend yield of 3.8%, which is highly reliable.

The post 4 Top Canadian Dividend Stocks to Buy With $400 in August 2021 appeared first on The Motley Fool Canada.

Today only: $200 off our top stocks for the “T288 era”

We now believe that a game-changing announcement by Apple in a matter of weeks could launch nothing less than a whole new era of technology.

With estimates believing this era could grow to US$7 trillion in annual sales — that’s 8x BIGGER than last year’s e-commerce sales…

The Motley Fool has produced a full investing plan to try taking full advantage of what Deloitte calls “the next digital transformation.”

And until midnight tonight — you can take US$200 off a VIP membership!

Learn more

More reading

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends ALTAGAS LTD. and FORTIS INC.

2021

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting