What’s up guys, it’s wiz.
Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be going over 3 Canadian dividend stocks that you should check during April. These companies could help you minimize risks arising from any uncertain tensions abroad and are also good defensive Canadian companies that have good resistance towards market drops. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.
The Canadian stock market continues to hover around its record highs, despite several macro-level challenges, including inflation and geopolitical tensions. If we look closely, the shares of well-established, dividend-paying companies have performed well this year so far, helping the TSX benchmark reach new heights. In contrast, the technology sector and other growth stocks continue to struggle. That’s why it could be the right time for investors to consider adding some value, some quality dividend stocks to their portfolios as we enter April 2022. So that is what I am going to showcase, I will highlight three of the top Canadian dividend stocks with really good yields to check out.
The first Canadian dividend stock is TC Energy stock (ticker symbol TRP). The shares of this Calgary-based energy infrastructure company have risen by 21% this year so far to $71.36 per share. It has a strong dividend yield of slightly more than 5%, which should help your investment portfolio remain largely unaffected by ongoing uncertainties at the macro level. In 2021, TC Energy reported a 3% rise in its total revenue to $13.4 billion with the help of a sharp 8.7% YoY (year-over-year) jump in its revenue in the most recent quarter. Its adjusted net profit last year rose by 5.3% to about $4.15 billion. In February, TC Energy’s management revealed that it’s continuing to witness robust volumes in early 2022 amid strengthening demand for energy products. TC Energy increased its dividend by 3% for 2022. The board has raised the payout for 22 straight years and steady annual gains should be on the way. TC Energy is working on a $24 billion secured capital program through 2027. The company gets 95% of its revenue from create-regulated assets or long-term contracts. This makes cash flow more reliable and enables the company to provide decent dividend-growth guidance. Unexpected events can still occur to change forecasts, but the current outlook for annual dividend hikes of 3-5% should be solid. TC Energy is a key player in the natural gas transmission and storage sector in Canada, the United States, and Mexico. Demand for North American natural gas is expected to rise in the coming years, as countries in Europe and Asia look to secure reliable sources of LNG which stands for liquified natural gas. TC Energy will play an important role in getting natural gas from producers to the LNG facilities. That’s why I expect its earnings growth trend to improve further in the upcoming month and in the ongoing year and keep this high-dividend stock soaring.
The second Canadian dividend stock is Bank of Nova Scotia otherwise known as Scotiabank (ticker symbol BNS). Unlike TC energy, Scotiabank hasn’t seen much appreciation this year so far, as it currently trades with year-to-date gains being flat and even just a little under currently. BNS is Canada’s third-largest bank and one of the country’s biggest companies with a market cap of $110 billion. Unlike its peers, who have invested in growth opportunities in the United States, Bank of Nova Scotia’s international focus has been on Latin America. The bank has invested billions of dollars on acquisitions to build a large presence in Mexico, Peru, Chile, and Colombia. It might seem odd to choose these countries given their volatile geopolitical situation, but the growth opportunities are significant in these markets that are home to a combined population of more than 230 million. The four countries are also members of the Pacific Alliance trade bloc that enables the free movement of goods, capital, and labour among the four markets. The pandemic hit the region hard, but banking operations in the international group in normal times are very profitable for Bank of Nova Scotia. They also just announced plans to increase the size of its share-buyback program to 36 million shares. This is on top of the board’s 11% dividend hike last fall. Another generous payout increase is likely on the way this year. The recent financial sector-wide selloff amid growing geopolitical tensions is also responsible for trimming its gains. While Scotiabank faced several operational challenges during the global pandemic phase, its adjusted earnings have still grown positively by 30% in the last five fiscal years to around $7.87 per share in the fiscal year 2021. During these five fiscal years, its total revenue has risen by around 19%. Its strong earnings growth, despite a moderate rise in revenue reflects the bank’s improving profitability. Apart from Scotiabank’s improving profit margin and strong earnings growth trends, its impressive dividend yield of around 4.4% makes it one of the best Canadian dividend stocks to buy in April.
The third and final Canadian dividend stock is Suncor Energy stock (ticker symbol SU). As heightening geopolitical tensions have triggered a massive rally in oil prices lately, it makes sense for investors to consider adding more energy stocks to their portfolios that also pay reliable dividends. That’s why Suncor Energy is the third stock on my list of top Canadian dividend stocks to buy in April. Suncor raised its dividend by 100% last fall after a rare cut to the dividend in 2020 that put the stock in a free fall for the past two years. Investors are finally starting to warm up to the integrated energy producer again, but the shares still appear undervalued given the current price of oil and the outlook for fuel demand in the coming years. It currently trades at close, around $41.27 per share with solid 30% year-to-date gains. Last year, Suncor Energy’s total revenue jumped by 56% year over year, reflecting its much faster-than-expected financial recovery amid reopening economies. As this oil production company continues to focus on increasing production and average utilization rate, you could expect Suncor Energy’s solid financial growth trend to remain intact in 2022 and help this Canadian dividend stock reach further heights. Also, Suncor stock offers a great 4.1% dividend yield. Management used excess cash to reduce debt and buy back shares last year. That trend is continuing in 2022, and it wouldn’t be a surprise to see another large dividend increase in the next few months. Great Canadian energy stock to check out!
Hope you guys enjoyed this overlook of 3 great amazing Canadian dividend stocks. Always make sure to do your own due diligence before buying into any of the mentioned companies. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!