As we roll into the latter half of August, some investors are beginning to think about what the next batch of fabulous dividend stocks to buy will be.
Fortunately, the market provides no shortage of great options, even in the otherwise quiet month of August! Here’s a look at three of the fabulous dividend stocks to buy this month.
Let’s start with an energy titan
You can’t talk about fabulous dividend stocks to buy in August and not mention Enbridge (TSX:ENB). The energy infrastructure behemoth is set to go ex-dividend on August 15 and currently offers a very juicy 6.8% yield.
This means that investors who drop even just $5,000 into the stock will generate over $300 in just the first year. That’s not enough to retire on, but it is enough to let dividend reinvestments do their magic over the longer term.
That fact alone makes Enbridge one of the fabulous dividend stocks to buy confidently this month.
But that’s not all. There’s another key reason to consider Enbridge apart from that very tasty dividend.
And that reason is diversification. In addition to its well-known pipeline business, Enbridge also operates a renewable energy business and natural gas utility.
Those segments not only provide a diversified revenue stream but also allow Enbridge to invest in growth and pay that juicy dividend.
Throw in the defensive appeal of its pipeline business and you have a hard-to-ignore option that’s going ex-dividend this week.
Add in the Dividend King
Another superb, fabulous dividend stock to buy is Fortis (TSX:FTS). Utility stocks like Fortis boast some of the most defensive operations on the market. That comes thanks to the reliable (if not lucrative) business model that utilities adhere to.
In short, utilities provide a service and are compensated for that service, with the details set out in long-term regulated contracts that span decades. As long as Fortis continues to provide that service, it generates a recurring and stable revenue stream.
And that revenue stream allows the company to invest in growth and pay out a generous quarterly dividend. As of the time of writing, the yield on that dividend works out to 4%.
But that’s not even the best part.
Fortis is one of only two Dividend Kings on the market. This means that it has provided investors with annual upticks for at least 50 consecutive years without fail.
And Fortis plans to continue that cadence.
Prospective investors considering Fortis can snatch that dividend up soon – the stock is set to go ex-dividend on August 20.
Banking on a healthy income this month
Canada’s big banks are great long-term holdings for any portfolio. They offer growth potential outside of Canada, an established domestic revenue stream, and juicy quarterly dividends.
Among those fabulous dividend stocks to buy this month is Canadian Imperial Bank of Commerce (TSX:CM). CIBC isn’t the largest of the big banks, but it is a compelling buy right now and going ex-dividend later this month on the 29th.
As of the time of writing, CIBC offers an appetizing 5.1% yield, and like Fortis and Enbridge has an established tradition of annual increases.
Fabulous dividend stocks await
The market has plenty of fabulous dividend stocks to consider buying, including the three mentioned above. What the three here offer investors is some defensive appeal, as well as growth potential and a tasty dividend.
In my opinion, one or all of the above stocks belong as core holdings in any well-diversified portfolio.
