RNW:CC - Dividend Bonanza: Canadian Stocks That Boost Your Wealth
2023-06-21 16:00:00 ET
Investors, do you want to boost your wealth? Finding the right mix of dividends can make all the difference between working into your golden years or retiring early. Fortunately, the market provides a dividend bonanza to consider for your portfolio.
Here’s a handful of some of the great dividend bonanza stocks that can boost your wealth.
Renewable energy can provide a juicy income
Renewable energy stocks like TransAlta Renewables ( TSX:RNW ) represent one of the biggest long-term opportunities for investors. This is because the transition from fossil fuels to renewable energy is a long and slow process.
In the case of Trans Alta, however, the company already operates a renewable energy portfolio with facilities across Canada, the U.S., and Australia. This means that instead of large transitional costs, TransAlta can invest in growing its network.
As of the time of writing, that network comprises over 40 facilities, which include solar, wind, hydro, and gas facilities. Those facilities follow the same lucrative business model that traditional utilities follow. In other words, the facilities are bound by long-term regulated contracts that provide a stable revenue stream.
That stream also allows TransAlta to pay out a very generous dividend. The dividend currently comes in the form of an incredible 8.08% yield, which is distributed on a monthly cadence .
For investors looking for that dividend bonanza, a $20,000 investment in TransAlta will provide a monthly income of over $130.
Telecoms can provide stable, growing income, too
Canada’s telecoms represent another area where investors can reap the rewards of long-term income. And the dividend bonanza stock from the telecom sector is none other than Telus Corporation ( TSX:T ).
Apart from offering a very juicy 5.71% yield (more on that in a moment), Telus offers several compelling reasons for investors to consider the stock.
First, there’s the defensive nature of the telecom business. The subscription-focused business model is recession-resilient, and the defensive appeal of the stock has only grown since the pandemic started.
Then, we have the pure-play focus of Telus. Rather than invest in an expensive and large media segment like its peers, Telus went in a different direction. The company has two growing subsidiaries, Telus Health and Telus Agriculture and Consumer Goods.
Both segments are focused on providing digital solutions catered to employees of companies, as well as consumers and the agricultural community.
Turning back to income, Telus’ quarterly dividend can provide a dividend bonanza to investors. Given the current yield, prospective investors with a $20,000 investment can expect to generate an income of just over $1,100 in the first year.
Investors should also note that Telus has provided a juicy annual or better bump to that dividend going back for over a decade.
Add this defensive stock with a juicy 7% yield
Enbridge ( TSX:ENB ) may be best known for its expansive pipeline network, but the energy infrastructure behemoth can offer so much more to investors.
That pipeline network is in a word, huge. It represents the largest and most complex pipeline network on the planet. It’s also responsible for hauling a third of all North American-produced crude, and nearly one-third of the natural gas needs of the U.S.
That fact alone makes Enbridge one of the most defensive stocks in the market, but there’s still much more to love about this stock.
Enbridge is also a growing player in the renewable energy space. In the past two decades, the company has invested over $8 billion into the segment. Today that renewable energy network consists of facilities that are located across both Europe and North America.
The company also offers one of the best dividends on the market. Enbridge’s quarterly dividend currently carries an incredible 7.16% yield. Enbridge also boasts more than two decades of consecutive annual increases, which makes it one of the best dividend stocks on the market.
Make your portfolio a dividend bonanza
No investment is without risk, and that includes the three stocks mentioned above. Fortunately, Enbridge, TransAlta, and Telus all boast defensive appeal in addition to their stellar income-earning capabilities.
In my opinion, one or all of these stocks would be a great addition to any larger, well-diversified portfolio.
The post Dividend Bonanza: Canadian Stocks That Boost Your Wealth appeared first on The Motley Fool Canada .
Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge and TELUS. The Motley Fool has a disclosure policy .
2023