{"id":178736,"date":"2020-07-15T21:04:55","date_gmt":"2020-07-15T21:04:55","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=178736"},"modified":"2020-07-15T21:04:55","modified_gmt":"2020-07-15T21:04:55","slug":"best-dividend-stocks-canada","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/","title":{"rendered":"Best Dividend Stocks Canada: Top 5 Dividend-Payers Stocks to Buy"},"content":{"rendered":"<p>Nearly three months ago in the depths of the lockdown, I recommend some <a href=\"https:\/\/stockchase.com\/discover\/dividend-stocks-covid-19\/\">safe dividend stocks<\/a>. This was happening as stocks left, right and centre, were halting their divvies, which made life for dividend investors like me tricky.  Now we&#8217;re making this post a special Best Dividend Stocks Canada update.<\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/#Best_Dividend_Stocks_Canada_American_and_Canadian_Stocks\" >Best Dividend Stocks Canada (American and Canadian Stocks)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/#Top_Dividend_Stocks_1_Cisco_CSCO-Q\" >Top Dividend Stocks #1: Cisco (CSCO-Q)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/#Top_Canadian_Dividend_Stocks_2_Keyera_KEY-T\" >Top Canadian Dividend Stocks #2: Keyera (KEY-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/#Top_Canadian_Dividend_Stocks_3_Power_Corporation_POW-T\" >Top Canadian Dividend Stocks #3: Power Corporation (POW-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/#Top_Canadian_Dividend_Stocks_4_North_West_Company_NWC-T\" >Top Canadian Dividend Stocks #4: North West Company (NWC-T)<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/stockchase.com\/discover\/best-dividend-stocks-canada\/#Top_Dividend_Stocks_5_UPS_UPS-N\" >Top Dividend Stocks #5: UPS (UPS-N)<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"Best_Dividend_Stocks_Canada_American_and_Canadian_Stocks\"><\/span>Best Dividend Stocks Canada (American and Canadian Stocks)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Since then, the markets have swung up and economies are reopening, though volatility continues to rattle markets as we saw on Monday, there are still <a href=\"https:\/\/www.5iresearch.ca\/blog\/opportunities-in-canadian-stocks-left-behind\" target=\"_blank\" rel=\"noopener\">opportunities<\/a>.  It&#8217;s time to have a new look at the best Canadian dividend stocks (or stocks for Canadian investors).<\/p>\n<p>Where to find certainty in uncertain times?<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-178869\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/CSCO-Q-1-760x254.jpg\" alt=\"Best Dividend Stocks Canada: US Stock Cisco\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Dividend_Stocks_1_Cisco_CSCO-Q\"><\/span>Top Dividend Stocks #1: Cisco (CSCO-Q)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"CSCO-Q stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/CSCO-Q\/chart?labels=tru\" width=\"125\" align=\"right\" \/>True, this American IT company doesn&#8217;t pay a divvy like a Canadian bank, but analysts such as <a href=\"https:\/\/stockchase.com\/expert\/view\/1315\/Darren-Sissons\">Darren Sissons<\/a> and <a href=\"https:\/\/stockchase.com\/expert\/view\/1305\/Lorne-Steinberg\">Lorne Steinberg<\/a> expect <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a>&#8216;s 3.09% to continue to grow along with the company&#8217;s free cash flow.<\/p>\n<p lang=\"en-CA\"><I>Cisco pays a 3.09% dividend <\/i><\/p>\n<p lang=\"en-CA\">Its current PE is 15.7x and only 3% of revenues are tied to China, so <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a> will largely be immune from ongoing U.S.-China trade tensions. Like its peers, <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a> will be impacted by decreases in IT spending, with 5G spending possibly delayed until next year and affecting company earnings this year, but <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a>&#8216;s WebEx videoconferencing app has been a hit with stuck-at-home office workers during the lockdown.<\/p>\n<p lang=\"en-CA\">Acquisitions like WebEx (bought in 2007) are paying off and allow <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a> to keep apace with its peers. <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a> currently trades slightly above its 50- and 200-day moving averages. Don&#8217;t expect the stock to soar like <a href=\"https:\/\/stockchase.com\/company\/view\/4017\/TSLA-Q\">Tesla<\/a>, but <a href=\"https:\/\/stockchase.com\/company\/view\/321\/CSCO-Q\">Cisco<\/a> will pay you to sleep soundly at night.<\/p>\n<p lang=\"en-CA\">\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-178871\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/KEY-T-1-760x254.jpg\" alt=\"Best Canadian Dividend Stocks : Keyera\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Dividend_Stocks_2_Keyera_KEY-T\"><\/span>Top Canadian Dividend Stocks #2: Keyera (KEY-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"KEY-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/KEY-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/>This midstream player extracts liquids from natural gas, a commodity which is safer than oil. <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a> currently pays a whopping 9.5% dividend yield, so the obvious question is, Is it safe? Bay Street thinks so.<\/p>\n<p lang=\"en-CA\"><I>Keyera pays 9.53% dividend <\/i><\/p>\n<p lang=\"en-CA\">Analysts like <a href=\"https:\/\/stockchase.com\/expert\/view\/1436\/Varun-Anand\">Varun Anand<\/a> point to <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a>&#8216;s 82% payout ratio as well as its debt refinancing. <a href=\"https:\/\/stockchase.com\/expert\/view\/48\/John-Zechner\">John Zechner<\/a> just made the stock a top pick, celebrating <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a>&#8216;s stable balance sheet, earnings, cash flow, decent valuation and steady production volumes. Based on a $25.79 price target, <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a> offers around 25% upside, but <a href=\"https:\/\/stockchase.com\/expert\/view\/1436\/Varun-Anand\">Anand<\/a> doesn&#8217;t foresee much growth. Also, <a href=\"https:\/\/stockchase.com\/expert\/view\/1109\/Robert-Lauzon\">Robert Lauzon<\/a> notes that there&#8217;s perceived counter-party risk\u2014can <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a>&#8216;s customers pay them in these choppy times? <a href=\"https:\/\/stockchase.com\/expert\/view\/1313\/Greg-Newman\">Greg Newman<\/a> stays away from <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a> for this reason.<\/p>\n<p lang=\"en-CA\">Another caveat: in recent years, the stock has struggled. For instance, over the last two two years, <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a> has plunged 45%. Perhaps <a href=\"https:\/\/stockchase.com\/expert\/view\/1149\/John-OConnell-CFA\">John O&#8217;Connell<\/a> sums up <a href=\"https:\/\/stockchase.com\/company\/view\/687\/KEY-T\">Keyera<\/a> the best: frustrating, but you&#8217;re getting paid to wait.<\/p>\n<p lang=\"en-CA\"><img decoding=\"async\" class=\"alignnone size-medium wp-image-178873\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/PCC-2-1-760x254.jpg\" alt=\"Top #3 dividend-payers Stocks Power Corporation\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Dividend_Stocks_3_Power_Corporation_POW-T\"><\/span>Top Canadian Dividend Stocks #3: Power Corporation (POW-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"POW-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/POW-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/>Recently (and belatedly for some), <a href=\"https:\/\/stockchase.com\/company\/view\/1000\/PWF-T\">Power Financial<\/a> and <a href=\"https:\/\/stockchase.com\/company\/view\/980\/POW-T\">Power Corp.<\/a> simplified their management structure. The pandemic has pressured shares from the low-$30s to the current low-$20s where it has been rangebound during the recovery. <\/p>\n<p lang=\"en-CA\"><I>Power Corporation pays 7.47% dividend <\/i><\/p>\n<p><span lang=\"en-CA\">At least the PE stands at a decent 10.7x. Just don&#8217;t expect much stock price growth from this insurer, warns <a href=\"https:\/\/stockchase.com\/expert\/view\/1392\/Brian-Madden\">Brian Madden<\/a>, certainly not in a very low interest rate environment. However, if you&#8217;re looking for income, Power is it.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-178872\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/NWC-T-1-760x254.jpg\" alt=\"Best Canadian Dividend Stocks : North West Company\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Canadian_Dividend_Stocks_4_North_West_Company_NWC-T\"><\/span>Top Canadian Dividend Stocks #4: North West Company (NWC-T)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"NWC-T stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/NWC-T\/chart?labels=tru\" width=\"125\" align=\"right\" \/><span lang=\"en-CA\">This consumer defensive name operates retail stores, selling groceries and household items, in the Canadian far north, Alaska and Caribbean. Because it operates in such an extreme geography, <a href=\"https:\/\/stockchase.com\/company\/view\/899\/NWC-T\">NWC<\/a> enjoys a monopoly. <\/span><\/p>\n<p lang=\"en-CA\"><I>North West Company pays 4.45% dividend <\/i><\/p>\n<p><span lang=\"en-CA\">The company is even insulated from e-commerce. Like <a href=\"https:\/\/stockchase.com\/company\/view\/980\/POW-T\">Power Corp.<\/a>, <a href=\"https:\/\/stockchase.com\/expert\/view\/1392\/Brian-Madden\">Madden<\/a> feels the dividend is safe, but doesn&#8217;t expect much stock appreciation. He&#8217;s also concerned by <a href=\"https:\/\/stockchase.com\/company\/view\/899\/NWC-T\">NWC<\/a>&#8216;s struggle to integrate a small airline it recently bought.<\/span><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-178874\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2020\/07\/UPS-N-1-760x254.jpg\" alt=\"Best Dividend Stocks Canada : US Stock UPS\" width=\"860\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"Top_Dividend_Stocks_5_UPS_UPS-N\"><\/span>Top Dividend Stocks #5: UPS (UPS-N)<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p><img alt=\"UPS-N stock price chart\" decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/UPS-N\/chart?labels=tru\" width=\"125\" align=\"right\" \/>Though not widely regarded as a dividend stock, <a href=\"https:\/\/stockchase.com\/company\/view\/1294\/UPS-N\">UPS<\/a>&#8216;s 3.53% does offer some stability, driven by the surge of e-commerce during this lockdown and extending into the current reopening.<\/p>\n<p lang=\"en-CA\"><I>UPS pays 3.53% dividend <\/i><\/p>\n<p lang=\"en-CA\"><a href=\"https:\/\/stockchase.com\/company\/view\/1294\/UPS-N\">UPS<\/a>&#8216; dividend pays far more than the 1.64% of its competitor, <a href=\"https:\/\/stockchase.com\/company\/view\/471\/FDX-N\">FedEx<\/a>, and the elephant in the room, <a href=\"https:\/\/stockchase.com\/company\/view\/67\/AMZN-Q\">Amazon<\/a>, which pays nothing. Essentially, <a href=\"https:\/\/stockchase.com\/company\/view\/1294\/UPS-N\">UPS<\/a> is a play on home deliveries. The stock has bounced from the mid-$80s of the late-March trough to its current stock price just below $115. Its payout ratio is currently 78% and the PE stands at 15.7x. <a href=\"https:\/\/stockchase.com\/company\/view\/1294\/UPS-N\">UPS<\/a> isn&#8217;t sexy, but dependable.<\/p>\n<p lang=\"en-CA\">Its one-year return is 8.88% and 2.37% over three. Revenue growth YOY is 3.11%. Nineteen of 26 analysts have a hold signal on <a href=\"https:\/\/stockchase.com\/company\/view\/1294\/UPS-N\">UPS<\/a>. I wouldn&#8217;t back up the truck on this one, but <a href=\"https:\/\/stockchase.com\/company\/view\/1294\/UPS-N\">UPS<\/a> is a steady-eddy that pays you a decent yield in a time of near-zero interest rates.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Nearly three months ago in the depths of the lockdown, I recommend some safe dividend stocks. This was happening as stocks left, right and centre, were halting their divvies, which made life for dividend investors like me tricky. Now we&#8217;re [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":178870,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[],"class_list":["post-178736","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/178736","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=178736"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/178736\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/178870"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=178736"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=178736"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=178736"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}