Yahoo Finance TFSA Savers: 2 Top Canadian Dividend Stocks to Buy Today
Canadian investors are searching for quality dividend-growth stocks to add to their TFSA portfolios.
Let?s take a look at TransCanada Corporation (TSX:TRP)(NYSE:TRP) and Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) to see why they might be interesting picks.
TransCanada
TransCanada recently pulled the plug on its Energy East Pipeline and Eastern Mainline projects.
On the surface, that doesn?t sound good, as pipeline companies need to acquire or build new assets to grow revenue and cash flow.
The news was not a surprise to most followers of the stock, however, and the market actually rewarded TransCanada with a small boost to the stock price in the wake of the announcement.
Why?
Energy East faced significant resistance, and cost estimates to construct the line had increased from about $12 billion to close to $16 billion as the company tried to find ways to tweak the route to get it approved.
With the project now abandoned, management and investors can focus their attention on the company?s near-term commercially secured projects as well as the Keystone XL pipeline.
TransCanada has about $24 billion in capital projects on the go that should boost cash flow enough to support dividend growth of at least 8% per year through 2020.
In addition, the Keystone XL mega-project is back on the table under the Trump administration, and TransCanada could give it the green light in the coming months.
If Keystone goes ahead, investors might see an upgrade to the dividend-growth guidance.
The stock currently provides a yield of 4%.
Bank of Nova Scotia
Bank of Nova Scotia has invested heavily in building a large international business, with a specific focus on Mexico, Peru, Colombia, and Chile.
These countries form the core of the Pacific Alliance, which is a trade bloc set up to promote the free movement of goods and services among the member states.
As the middle class grows, demand for loans and investment products should increase, and Bank of Nova Scotia is positioned well to benefit in this combined market of more than 200 million people.
The international operations already contribute nearly 30% of Bank of Nova Scotia?s profits.
If you are looking for a bank stock, but want a hedge against any difficult times in the Canadian economy, Bank of Nova Scotia should be an attractive buy-and-hold pick.
The company has a strong track record of dividend growth and the current payout yields 3.9%.
Is one more attractive?
Both stocks provide solid dividends that should be safe. At this point, I would probably split a new investment between the two names to get exposure to Canada, the United States, and international markets.
1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway
The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.
For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
More reading
Should the Energy East Cancellation Scare Oil and Gas Investors?
Canadian National Railway Company: Cancelled Energy East Pipeline an Opportunity for the Rails
Bank of Nova Scotia Is Selling TMX Group Limited: Should You?
Fool contributor Andre Walker has no position in any stock mentioned.
1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway
The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.
For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
Fool contributor Andre Walker has no position in any stock mentioned.
