5 of the Best TSX Dividend Stocks to Buy Under $100

It makes sense to buy and hold top dividend stocks for regular income, even when the volatility remains high in the market.

It’s advisable to buy and hold some of the top dividend-paying TSX stocks in your portfolio for a regular income, even when the volatility in the market remains elevated. Let’s focus on five such top dividend stocks that are likely to continue to boost shareholders’ returns through higher dividend payments. Further, these top dividend stocks are trading under $100.

Scotiabank

Scotiabank (TSX:BNS)(NYSE:BNS) has consistently paid dividends since 1833. Furthermore, the bank’s dividends have grown at a CAGR of 6% over the past decade. Its robust dividend payments are backed by its high-quality earnings base and its exposure to high-growth banking markets. 

I believe the economic expansion, decline in provisions, and uptick loans and deposit volumes are likely to drive significant earnings growth. Meanwhile, its focus on expense management is expected to cushion earnings and support its future dividend payments. Besides offering solid dividends, Scotiabank is trading at a significant discount to peers, making it attractive at the current levels. Scotiabank currently offers a decent yield of 4.6%.

Enbridge

Enbridge (TSX:ENB)(NYSE:ENB) has consistently increased its dividends by about 10% in the last 26 years. Moreover, it has paid dividends for nearly 66 years, thanks to its diversified cash flow streams and strength in its core business. 

I believe Enbridge remains well positioned to continue to increase its future dividends, reflecting the revival in energy demand. The recovery in its mainline volumes, about 40 diverse sources of cash flows, secured capital program, and continued momentum in core business makes me bullish on Enbridge stock. The energy infrastructure company is currently yielding about 7.2%, while its payout ratio is sustainable in the long term.

Canadian Utilities 

Speaking of dividends, shares of Canadian Utilities (TSX:CU) are a must-have in your portfolio. The utility company is well known for its dividend payments and has increased it for 49 consecutive years. Its stellar dividend payment history reflects the strength of its earnings and cash flows. 

Notably, Canadian Utilities generates its earnings from the regulated and contracted assets, implying that its dividends are safe. Meanwhile, its continued investments in the regulated assets and cost-reduction measures are likely to drive its high-quality earnings base and, in turn, its dividends. The company currently offers a safe and high yield of 5.2%. 

Fortis

Fortis (TSX:FTS)(NYSE:FTS) has paid and increased its dividends in the last 47 years in a row. The utility company projects a 6% growth in its annual dividends in the coming five years. Notably, Fortis’s robust dividend payments are supported through its regulated and diversified assets that generate predictable cash flows. 

The company’s rate base is projected to increase by $10 billion in the next five years, which is likely to enhance its high-quality earnings base and dividend payments. Meanwhile, expansion and diversification opportunities augur well for future growth. Fortis offers a dividend yield of 3.7%. 

Pembina Pipeline 

Pembina Pipeline (TSX:PPL)(NYSE:PBA) has consistently boosted its investors’ returns through higher dividend payments. Notably, it has paid dividends since 1997. Also, its dividends have increased by a CAGR of about 4.9% in the last 10 years. At current price levels, Pembina offers a stellar yield of 6.9%. 

Pembina’s highly contracted and diversified business, recovery in demand, expected increase in volumes and pricing, and strong backlog suggests that the company could continue to hike its future dividends at a decent pace. At current price levels, Pembina Pipeline stock trades at a discount compared to peers. 

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA, FORTIS INC, and PEMBINA PIPELINE CORPORATION.

More on Dividend Stocks

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »