Canadians: Here Are the Dividends You’ll Receive With $20,000 Invested in Enbridge (TSX:ENB) and CIBC (TSX:CM)

Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) can reward income investors nicely with a $20,000 investment spread between the two.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Last week, I’d discussed two of my favourite dividend heavyweights to hold in a Tax-Free Savings Account (TFSA) as we start a new decade. These equities are always on my radar, as the companies in question have demonstrated organizational excellence over a long period of time. Better yet, they have proven their commitment to rewarding shareholders.

Today, I want to explore how far a $20,000 investment in these equities can get investors right now. Stocks that pay out consistent income are well worth holding in a portfolio for the long term. Not only do these equities provide double the punch during periods of market expansion, but they also give investors a boon during turbulent episodes.

In this hypothetical, we are going to dole out $20,000 in two of the top dividend stocks on the TSX. What kind of dividend payments can investors expect with this investment? Let’s dive in and find out.

Enbridge (TSX:ENB)(NYSE:ENB) is the third-largest stock on the S&P/TSX Composite Index by market cap. Shares of the energy infrastructure giant have built significant momentum on the back of strong earnings and promising regulatory victories. The stock has increased 19% year over year as of close on January 28.

The company is set to release its fourth-quarter and full-year results for fiscal 2019 before markets open on February 14. In the third quarter, GAAP earnings surged to $949 million, or $0.47 per share, compared to a GAAP loss of $90 million, or $0.05 per share, in the prior year. It continued progress on its Line 3 Replacement Project in the United States, as the Minnesota Supreme Court rejected Environment Impact Statement (EIS) appeals.

Enbridge last paid out a quarterly dividend of $0.738 per share, which represents a strong 6% yield. It has achieved dividend growth for over 20 consecutive years. The stock last closed at $54.10 per share at the time of this writing. A purchase of 184 shares would bring us below that $10,000 threshold. Those shares would net investors a quarterly payout of $135. On an annual basis, that works out to over $540 in investment income.

Earlier this month, I’d explained why Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) was still one of my top bank stocks even after a less-than-stellar 2019. Shares of CIBC have increased 4.2% year over year as of close on January 28. Shares are down 1.1% over the past three months.

Once a leader in the housing space among its peers, CIBC fell behind when the market corrected in 2017 and 2018. It has vowed to invest in bolstering its mortgage portfolio in this fiscal year. The bank boasts an immaculate balance sheet and offers up some of the best value of its peers. Shares last had a favourable price-to-earnings ratio of 9.7 and a price-to-book value of 1.3.

CIBC may be the fifth largest of the Big Six Canadian banks, but its dividend packs a wallop. The bank last increased its quarterly dividend to $1.44 per share. At the time of this writing, that represents a 5.2% yield. The stock last closed at $109.45. A purchase of 91 shares of CIBC stock brings us under the $10,000 threshold. Those 91 shares would net shareholders $131 paid quarterly. On an annual basis, investors would gobble up over $520 in dividend income.

Should you invest $1,000 in CIBC right now?

Before you buy stock in CIBC, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and CIBC wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

monthly desk calendar
Dividend Stocks

How I’d Invest $7,000 in These 2 Stocks Paying Monthly Dividends

Income-focused investors can consider taking positions in two dividend stocks that pay well-protected monthly dividends.

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

A 5.36% Dividend Stock Paying Cash Every Single Month

This monthly dividend stock could be your next big money maker.

Read more »

3 colorful arrows racing straight up on a black background.
Dividend Stocks

Meet the Canadian Stock That Continues to Crush the Market

This Canadian stock has already been crushing the market, but watch out. More could be on the way.

Read more »

Dividend Stocks

Where to Invest $5,000 in Canadian Stocks in Today’s Market

These stocks pay attractive dividends and should be solid long-term picks.

Read more »

Dividend Stocks

Where I’d Invest $10,000 in 2 No-Brainer Canadian Stocks Under $70

The stock market is in a state of flux right now, and it’s important to be careful where you invest…

Read more »

Man data analyze
Dividend Stocks

Trump’s Tariff Relief: China Gains, But What About Canada?

Trump Tariffs create uncertainty, but index funds like iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) remain investable.

Read more »

ways to boost income
Dividend Stocks

This 7.6% Dividend Stock Pays Cash Every Month

There are dividend stocks, there are monthly dividend stocks, and then there are those with incredibly stable futures.

Read more »

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.
Dividend Stocks

3 Canadian Dividend Stocks to Build Wealth in Your RRSP

Three Canadian dividend stocks can help you build wealth or a substantial retirement fund in your RRSP.

Read more »