1. Toronto-Dominion Bank (TD)
This member of the big five bank club was created by the 1955 merger of the Bank of Toronto and the Dominion Bank. As of Q2, TD held about C$1.7 trillion in assets, making it Canada's largest bank in terms of assets.
The stock has fallen over the past month, but given TD's massive scale advantages, its current dividend yield of 3.9% — slightly higher than that of close rivals Royal Bank (3.3%) and Bank of Montreal (3.3%) — is tough to pass on. And with about 11% annualized growth, TD has a strong and consistent dividend history.
The company currently generates about 35% of its revenue in the U.S. When you combine that geographic reach with the bank's conservative lending practices, risk-averse investors might want to take a closer look.
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2. Fortis (FTS)
This utilities giant operates regulated gas and electric energy services in Canada, the U.S., Central America and the Caribbean.
As of June this year, the company controlled $56 billion in assets and served about 3.4 million customers.
Fortis doesn't just boast a stable record of dividend payments: It has increased its payout to shareholders for 47 consecutive years. And for prospective investors, management has planned 6% annual average dividend growth through 2025.
Given Fortis' highly regulated operating environment and five-year beta of just 0.06 — meaning the stock is far less volatile than the overall stock market — its current dividend yield of 3.5% looks particularly attractive.
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3. BCE Inc (BCE)
The publicly traded holding company for Bell Canada traces its roots back to Alexander Graham Bell's 1876 filing for a Canadian patent for the Bell telephone. It now provides internet and television services, and runs recognizable media brands CTV, TSN, Crave and iHeartRadio.
BCE shares have risen steadily over the past year, up about 23% since September of 2020. But with a current dividend yield of 5.4% — higher than that of rivals Rogers Communications (3.1%) and Telus (4.3%) — there might be plenty of room for BCE shares to run.
Since Q4 2008, the company has increased its annual dividend by 140%. BCE's scale advantages and highly regulated operating environment should be able to easily support continued long-term hikes.
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