Looking for some of the best Canadian dividend stocks to double up on right now? There are some that you just can’t go wrong with picking up immediately. And today, those would consist of Manulife Financial (TSX:MFC), Brookfield Renewable Partners (TSX:BEP.UN, and Extendicare (TSX:EXE). Each of these companies operates in different sectors but offers strong dividends and exciting growth prospects. Here’s why these stocks stand out as stellar options for your portfolio today.
Manulife
Manulife Financial has been a dependable dividend stock for years. With a dividend yield currently hovering around 3.8%, it continues to reward its investors handsomely. In the latest quarter ending June 30, 2024, Manulife reported impressive revenue growth of 12.8%, showing the company’s resilience even in volatile markets
Despite the challenges posed by rising interest rates, MFC’s global insurance and wealth management business has remained robust. The stock’s forward price/earnings (P/E) ratio of 10.5 signals that it’s relatively undervalued, making it an attractive buy
Manulife has been increasing its dividends consistently. And with a solid payout ratio of around 65%, it’s well-positioned to continue delivering to investors. And with the company’s expansion into the Asian market, it’s expected to contribute significantly to future growth.
Brookfield Renewable
Brookfield Renewable, a leading player in the renewable energy space, boasts a hefty dividend yield of 5% – thus making it one of the best dividend payers in the renewable sector
In its most recent earnings report for Q2 2024, Brookfield posted 23% year-over-year revenue growth, emphasizing its solid financial footing
Extendicare
Extendicare, a leader in the Canadian long-term care and senior living sector, has become an investor favourite. Especially thanks to its consistent dividend yield of 5.2%
While the sector can be challenging due to regulatory changes, Extendicare’s experienced management team and focus on operational efficiency have allowed the company to maintain profitability. Its strong payout ratio of 70.6% ensures that it can continue to distribute dividends to shareholders without overstretching
Common themes
All three companies have a solid track record when it comes to dividends. Manulife has been paying dividends for over a decade, and its commitment to increasing payouts makes it a reliable source of income
Then there are the sectors. Manulife operates in the financial sector, which, despite facing challenges from interest rates, remains a cornerstone of the Canadian economy. The company’s global presence, especially in emerging markets like Asia, offers protection against domestic downturns
Looking ahead, Manulife is well-positioned to benefit from rising global demand for financial products, especially in Asia
Bottom line
All three of these dividend stocks offer a powerful combination of solid dividends, sector resilience, and future growth potential. Doubling up on these dividend stocks could provide a steady income stream while setting your portfolio up for long-term growth.