Investors looking for top-notch dividend stocks can certainly choose from many great options.Certainly, there are some in TSX Excellent dividend company It provides a good long-term growth outlook.
Some of the top dividend stocks I’m looking at right now Embridge (TSX: ENB)(NYSE: ENB) When SmartCentres REIT (TSX: SRU.UN). Let’s take a closer look at why these stocks are one of the best high-yielding plays on the market today.
Top Dividend Stocks: Embridge
As far as Canada’s big caps are concerned, Enbridge’s 6.8% dividend yield It’s one of the best. Indeed, the fact that investors can get such high yields in the name of large cap stocks is rare. Therefore, some investors may consider this higher than normal yield as a red flag.
In most cases, I agree that this yield is likely to be unsustainable. Currently, the market seems to have some uncertainty about the long-term payment of this dividend. Today, Embridge usually pays higher than average yields over the years. This is the result of aggressive dividend increases each year.
However, Embridge recently announced that it is focusing on reducing debt burden and improving its balance sheet. The company will continue to increase dividends, but over the next few years it will only be around 3% per year. The surplus cash flow held by Embridge will be used to fund capital projects and balance sheet improvement initiatives.
This is very good for long-term investors. Given how high Embridge’s existing yields are, the company doesn’t have to do much to provide investors with significant long-term returns. Cash flow should continue to increase as the company’s Line 3 expansion comes online later this year. We expect the completion of this project to significantly increase Embridge shares.
In fact, Enbridge is expected to bring US $ 200 million in the fourth quarter alone. I think Embridge is in a good position to outperform in the long run. This dividend yield is simply too juicy to ignore.
Another high-yielding dividend stock on my radar right now is SmartCentres REIT. The real estate trust dropped its dividend yield at the time of writing from a double-digit yield to about 6.1% (still very juicy) during last year’s pandemic.
Congratulations to those who have fixed that yield.
For everyone else, a 6.1% yield isn’t shy. Why? Well, this is one of the best REITs in the retail industry. The company’s asset portfolio is world class. In addition, SmartCentres is proud of its tenants because its clients are essentially good companies. Therefore, the cash flow of SmartCentres is very stable. This REIT can not only support the current dividend, but I think there is room for further increase in the future.
For income-conscious long-term investors, this is a great discovery today. In fact, both SmartCentres and Enbridge offer two great high-yielding options to retired or near-retirement investors. I think these strains are very likely to outperform in the long run. These remain the top two dividend stocks on my watchlist today.
This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own treatises, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content. ..
Stupid contributor Chris Macdonald does not have a position in any of the stocks mentioned in this article. Motley Fool owns a stake in Enbridge and recommends Enbridge. Motley Fool recommends Smart REIT.
Two Top Dividend Stocks to Add for High Yield The Motley Fool Canada
https://www.fool.ca/2021/08/18/2-top-dividend-stocks-to-add-for-their-high-yields/ Two Top Dividend Stocks to Add for High Yield The Motley Fool Canada