A recent correction in the market has sent share prices plummeting for companies across the TSX. For many dividend stocks, though, a drop in stock price has created a temporary spike in yield. As the market recovers, weâll see those yields gradually climb back down. But for the time being, now would be an excellent time to think about investing in dividend stocks.
In addition to a high yield, passive-income investors will want to look at the business’s long-term growth potential as well as the dependability of the dividend payout. Fortunately, for Canadian investors, the TSX is full of dividend stocks with payout streaks spanning decades and longer.
Iâve put together a list of three dependable dividend stocks that are all yielding above 4% right now.
Iâll admit that the three companies are far from exciting businesses. When it comes to investing, though, thereâs absolutely nothing wrong with boring.
The major Canadian banks have been staple holdings for Canadian passive-income investors for years. The Big Five all pay top yields today, as well as own some of the longest payout streaks on the TSX. In addition to that, they are all very reasonably priced right now, especially after the marketâs recent correction.
Few companies can compete with Bank of Montreal (TSX:BMO)(NYSE:BMO) when it comes to its dividend. The $85 billion bank has been paying a dividend to its shareholders for close to 200 consecutive years. And at todayâs stock price, the bankâs annual dividend of $5.56 per share yields close to 4.5%.
Sticking with the financial industry, Sun Life (TSX:SLF)(NYSE:SLF) is another dividend stock that passive-income investors cannot go wrong with.
The $35 billion insurance company is no match for BMOâs 200-year payout streak. It is, however, yielding close to 5% at todayâs stock price.
As I mentioned early, thereâs nothing exciting about this basket of stocks. On the plus side, the insurance industry is as dependable as they come. A major reason is that I donât anticipate the demand for insurance to begin declining any time soon. Itâs an industry that Iâm betting will be around for many more years.
The last dividend stock on my list is another unexciting but high-yielding company.Â
Algonquin Power (TSX:AQN)(NYSE:AQN) is a Canadian leader in the utility space. The company also boasts an international presence with operations spread across the globe.
A 15% drop from all-time highs now has the utility stockâs dividend yielding above 5.5%. You wonât find many other dividend stocks on the TSX yielding that high right now.
In addition to a top yield, Algonquin Power also provides its shareholders with market-beating growth potential. One of the reasons why the company has been able to outperform the Canadian marketâs returns in recent years is due to Algonquin Powerâs growth in the renewable energy sector.
And with demand for renewable energy only expected to grow in the coming years, I wouldnât bet on Algonquin Power lagging the Canadian marketâs return anytime soon.
The post 3 Dividend Stocks Yielding Above 4% Offering Stable Income appeared first on The Motley Fool Canada.
Before you consider Algonquin Power and Utilities, we think youâll want to hear this.
Our nearly S&P/TSX market doubling* Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could supercharge any portfolio.
Want to see if Algonquin Power and Utilities made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.
See the 10 Stocks* Returns as of 4/14/22
setButtonColorDefaults("#5FA85D", 'background', '#5FA85D');
setButtonColorDefaults("#43A24A", 'border-color', '#43A24A');
setButtonColorDefaults("#fff", 'color', '#fff');
Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.