Business & Investment

Did you get $ 3,000? Three Canadian Dividend Shares to Purchase in January 2021

Increasing awareness in the vaccine sector suggests that economic recovery may accelerate in 2021. As demand recovers, corporate profits may show a sharp improvement compared to 2020, which is likely to support dividends.

So if you have an investment of $ 3,000, consider buying stock in Canada’s top companies that are paying these dividends right now.

TC Energy

TC Energy (TSX: TRP)(NYSE: TRP) Is Perfect income stockThanks to its solid balance sheet, diversified assets, high quality earnings, and visible dividend growth.

Due to the regulatory and contractual nature of the portfolio, it is not affected by volatility related to commodity prices and volume throughput. On the other hand, it is well-positioned to benefit from the recovery in energy demand and has the potential to generate significant growth over the next few years.

The company’s asset base increased from $ 25 billion in 2000 to more than $ 100 billion in 2020. Due to the expansion of our asset base, dividends increased from $ 0.80 per share to $ 3.24 in 2020.

TC Energy’s strong base business and $ 37 billion safe growth project have the potential to support higher dividend payments in the future. TC Energy forecasts dividend growth of 8-10% in 2021. In addition, we forecast dividends of 5-7% after 2021. Currently, dividend aristocrats offer high yields of 6.3%.


Recently, Embridge (TSX: ENB)(NYSE: ENB) Announced 3% hike Despite low demand for products to be shipped, the annual dividend was $ 3.34. Pipeline giants continued to face major headwinds in 2020, but the power of their core businesses and a well-diversified revenue base boosted their distributable cash flow (DCF) and supported dividend payments. I did.

Embridge has raised dividends for the 26th consecutive year, including recent hikes. In addition, as demand is expected to improve and core businesses remain strong, Embridge will be able to raise dividends further after 2021.

The company expects to grow DCF per share by 5-7% annually. On the other hand, the dividend payout ratio is planned to be maintained at 60-70% of DCF, which is sustainable in the long run. On the other hand, a gradual transition to a business, such as a low-risk utility, may facilitate future payments.

Embridge is currently paying a quarterly dividend of $ 0.835 per share. This reflects a stellar yield of 8.2% and is safe.


Like TC Energy, Fortis (TSX: FTS)(NYSE: FTS) Get a clear picture of dividend growth over the next few years. Fortis owns high-quality regulated assets that generate predictable and growing cash flow that supports dividend payments.

In addition to rising stock prices, utilities have returned billions of dollars to shareholders over the past few years through dividends and share buybacks. Dividend increased for 47 consecutive years. Meanwhile, thanks to continued rate-based growth, dividends are expected to grow 6% annually by 2025.

The company’s revenues and cash flow can grow at a healthy pace, reflecting continued investment in infrastructure, additional acquisitions, and cost savings. Meanwhile, its rate base is projected to grow $ 10 billion to $ 40.3 billion by 2025.

Fortis is currently paying a quarterly dividend of $ 0.505 per share, reflecting a yield of 3.9%.

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Stupid contributor Snehanahata There are no positions in any of the listed stocks. Motley Fool owns and recommends a stake in Enbridge. Motley Fool recommends FORTIS INC.

Did you get $ 3,000? Three Canadian Dividend Shares to Purchase in January 2021 Did you get $ 3,000? Three Canadian Dividend Shares to Purchase in January 2021

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