There comes a point in our quest for retirement or financial freedom when we need to focus on one source of income to pay the bills. That’s where Dividend yield stocks come into the game.
The desired outcome is a safe business with a 4% dividend yield, a history of constant dividend payments, and dividend growth to keep up with inflation.
This is a different strategy than building a portfolio during the years of accumulation when you can take more risks. Hence, finding the suitable stock that will give you the best income with the best dividend stability is no easy task.
The stable industries are telecom stocks, utility stocks, banking stocks, and insurance stocks.
Best dividend yield stocks
The Dividend Snapshot Screener is set up to quickly narrow down to a short list. Filter on Income Adjustment, Earnings, Chowder Score, and other metrics you want.
Each of the stakes listed below will pay you more than 4% and grow their dividends faster than inflation so you can keep up with inflation.
Note: REITs are excluded from the filter. I’m not a fan and there are safer ways to generate income and get dividend growth that keeps pace with inflation.
The 3 filters I use from the best Canadian stock screener are:
- Dividend yield over 4% – Good income and not at risk
- Chowder score over 10% – Dividend growth beats inflation
- At least 5 consecutive dividend increases each year – Consistency through management
# 1 – Manulife
Capital Power is a leading North American power producer engaged in the development, acquisition and operation of power generation assets.
The company has around 5,100 MW of power generation capacity at 25 plants.
Capital Power owns natural gas (55% of its portfolio), coal (27%) and renewable energy (18%) assets that are either commercial, commercial, contract or under construction.
The inventory of assets has an average age of 15 years with considerable longevity.
The company also has a strong renewable pipeline with 1,200 MW wind power development in the U.S. Capital Power is focused on Alberta for commercial power generation and has contracted generation capabilities across North America with nearly 900 MW of proprietary generation capacity in advanced development in Alberta and Illinois.
# 2 – Algonquin Power & Utilities Corp.
Algonquin Power & Utilities is a diversified utility company in North America with total assets of $ 10 billion. The company is engaged in the generation, transmission and distribution of water, gas and electricity to communities in the USA. It also has a renewable energy business.
As a growing renewable energy company, Algonquin Power has a strong portfolio of long-term contracted wind, solar and hydropower systems with a total installed capacity of 1.5 GW.
The company has a stake in more than 39 clean energy plants through its subsidiaries. Algonquin Power operates through two subsidiaries: Liberty Utilities (64% of 2018 revenues) and Liberty Power (36%).
The company has more than 50 power generation plants and 20 utilities across North America. Algonquin’s utility company serves nearly 770,000 customers in twelve US states over 1,200 miles of power lines and 100 miles of natural gas pipelines.
# 3 – Scotia Bank
Scotiabank is a leading international bank in Canada and a leading financial services company in America. The bank is present in private and corporate banking, corporate and investment banking, wealth management and the capital markets and serves 25 million customers worldwide.
With a rich history spanning 185 years, the bank has built an extensive network of over 960 branches and more than 3,600 ATMs in Canada and 1,800 international branches.
Scotiabank has a broad geographic presence in attractive markets in Latin America (71% of sales), the Caribbean and Central America (25%) and Asia (4%). It operates through the Canadian Banking (49% of revenue), International Banking (36%) and Global Banking and Markets (15%) businesses.
Scotiabank is highly diversified in terms of products, customers and regions, which reduces risks and volatility. The bank generates almost 80% of its revenue from high quality and stable business that gives stability to cash flows.
# 4 – TC energy
TC Energy is a leading North American infrastructure company. It supplies more than 25% of the natural gas consumed in North America every day.
The company has a strong portfolio of diversified assets, storage facilities and power generation equipment and operates one of the largest natural gas pipeline networks in North America, spanning more than 97,500 miles.
TC Energy operates three complementary energy infrastructure companies in three major regions in North America. Based on the type of generation, TC’s assets can be divided into nuclear, natural gas and wind.
The US, Canada and Mexico are its core regions and the company has access to the two most productive natural gas reserves in North America.
With more than 65 years of service, TC Energy is known for providing energy in a safe and sustainable manner. Owning regulated, low-risk service cost companies and long-term contracted energy infrastructure assets sets TC Energy apart from its competitors.
# 5 – Enbridge
Enbridge Inc. is the largest energy infrastructure company in North America. It is Canada’s largest natural gas distributor engaged in the collection, transportation, processing and storage of oil and gas. Enbridge serves 3.7 million customers in Ontario, Quebec, New Brunswick and New York.
It has an extensive network of approximately 192,000 miles of natural gas and NGL pipelines across North America and the Gulf of Mexico.
Its crude oil and liquids transportation systems are huge, with more than 17,000 miles of active pipelines.
The company is known for its high quality liquid and natural gas infrastructure systems. In addition, Enbridge has 3.1 billion cubic feet per day of processing capacity and 438 billion cubic feet of net natural gas storage capacity. It also has stakes in almost 3,000 MW of renewable generation capacity.
Enbridge operates in five reporting segments – liquids pipelines (52% of 2018 profit), gas transportation and midstream (22%), gas distribution (17%), green power and transportation (4%) and energy services (5%).
Get your list of STRONG dividend growth stocks
My portfolio has generated over 12% annual returns since 2009. It’s not since the beginning of the year or 2019 it’s from 2009 !!! That’s a constant return, which means that, following the rule of 72, I double my portfolio every 6 years.
My approach is simple, but you need key data that I cultivated using the Dividend Snapshot Screeners. No other investment services provide you with easily understandable data, but also actionable data. No hidden magic.
In fact, I’ve tried all of the investment services for dividend investors like an investment services crash test dummy. Just ask me and you will see why there was nothing I could use out there and build the dividend snapshot screeners.