4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but income for decades.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 21, 2024 9:00 pm EDT

There are some prime dividend stocks that Canadian investors can consider this coming month. Investors continue to be cautiously optimistic about the future performance of the TSX today.

With that in mind, today we’re going to look at why Canadian National Railway (TSX:CNR), Brookfield Renewable Partners (TSX:BEP.UN), TC Energy (TSX:TRP), and Manulife Financial (TSX:MFC) are strong dividend stocks to consider.

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CNR stock

CNR stock is one of the largest rail networks in North America, providing transportation services across Canada and the United States. It has a long history of paying dividends, underpinned by its stable and predictable cash flow. Over the past five years, CNR’s stock has delivered a total return of approximately 80%, reflecting its strong operational efficiency and strategic investments.

The company has consistently increased its dividend, with a compound annual growth rate (CAGR) of around 10% over the past decade. For the fiscal year 2023, CNR reported net income of $4.2 billion, a 6% increase from the previous year.

CNR stock’s focus on improving operational efficiency and expanding its network capacity will drive future growth. CNR’s strategic investments in technology and infrastructure should enhance its competitive position. With a current dividend yield of around 2.09%, CNR offers a reliable income stream for dividend investors.

BEP stock

BEP stock is a global leader in renewable energy, owning and operating a diverse portfolio of hydroelectric, wind, solar, and storage facilities. Over the past five years, Brookfield Renewable Partners has delivered a total return of approximately 70%, driven by its expanding renewable energy portfolio and strong cash flow generation.

BEP has a history of increasing its dividend, with a CAGR of around 6% over the past decade. For the fiscal year 2023, Brookfield Renewable reported funds from operations (FFO) of US$1.2 billion, a 10% increase from the previous year coming from its predictable cash flow.

BEP stock’s focus on expanding its renewable energy capacity and investing in new technologies positions it well for future growth. The company plans to invest US$10 billion in growth initiatives over the next five years. With a current dividend yield of around 5.74%, BEP stock offers a compelling income opportunity for dividend investors.

TC Energy stock

Then we have TC Energy stock, a leading North American energy infrastructure company, operating natural gas pipelines, liquids pipelines, and power generation facilities. It has a strong history of dividend payments, supported by its stable and predictable cash flow.

Over the past five years, it has delivered a total return of approximately 40%, reflecting its resilient business model and strategic growth initiatives. The company has consistently increased its dividend, with a CAGR of around 7% over the past decade. For the fiscal year 2023, TC Energy reported net income of $4.1 billion, a 5% increase from the previous year.

The company’s diversified revenue streams and long-term contracts contribute to its robust earnings. TC Energy’s focus on expanding its natural gas pipeline network and investing in renewable energy projects will drive future growth. It plans to invest $21 billion in capital projects over the next five years. With a current dividend yield of around 7.35%, TC Energy is an attractive option for income-focused investors.

Manulife stock

Finally, we have Manulife stock, a leading international financial services group, offering insurance and wealth management products in Canada, the United States, and Asia. It has a strong history of paying dividends.

Over the past five years, Manulife has delivered a total return of approximately 50%. This was driven by its strong earnings growth and strategic expansion initiatives. The company has consistently increased its dividend, with a CAGR of around 9% over the past decade.

For the fiscal year 2023, Manulife reported net income of $6 billion, an 8% increase from the previous year. The company’s diversified revenue streams and strong presence in growth markets contribute to its robust earnings. Manulife stock’s focus on expanding its wealth and asset management business and leveraging digital technology will drive future growth. The company’s strategic initiatives in Asia, where it sees significant growth potential, should enhance its earnings. With a current dividend yield of around 4.9%, Manulife offers a compelling income opportunity for dividend investors.