Popular dividend stocks to consider
1. Algonquin Power & Utilities Corp (TSE: AQN, NYSE: AQN)
Close to two-thirds of Algonquin Power’s business centers on electricity, natural gas, and water, essential utility businesses. The rest of the business deals with renewable energy operation, development, generation, and distribution. Regardless of the economic situation, people will still need water, electricity, gas. As such, demand for Algonquin’s services has a strong base, and renewable energy is likely to elbow out dirty energy such as oil and coal in the foreseeable future.
Also, Algonquin is in the process of expanding its operations by acquiring full control of Empresa de Servicios Sanitarios de Los Lagos S.A. (ESSAL), a major player in Chile’s water utility sector. ESSAL will be the second major acquisition after Algonquin completed the takeover of Bermuda Electric Light Company (BELCO), an Ascendant Group Limited’s major subsidiary.
Lastly, AQN currently pays a 4% dividend, which means the company has plenty of runways to grow the payout ratio with time.
2. TELUS Corporation (TSE: T, NYSE: TU)
TELUS is not only a dividend stock but also a growth stock. Particularly attractive about the stock is the number of attractive opportunities lying ahead. For example, TELUS is laying the groundwork for a major broadband coverage network via the TELUS PureFibre network because the current network is not as extensive as it should.
Further, TELUS just raised dividends to 7% from 5%. Given TELUS’s growing capacity to increase income and digital business opportunities, the company has great potential to continue increasing the dividend in many more quarters ahead.
3. Royal Bank of Canada (TSE: RY, NYSE: RY)
Granted, the Royal Bank of Canada is not a growth stock. The stock has been paying dividends for over one and a half centuries, whose payout ratio now stands at 54.9%. The dividend yield is also at 4.4%, which is high enough in comparison to the industry average.
Obviously, RY offers dividend safety and stability, making it a useful addition to your portfolio.
4. Fortis Inc. (TSE: FTS, NYSE: FTS)
Fortis has significant operations in the utility sectors of both Canada and the United States. The business’s income reliability makes FTS a popular dividend stock, especially in the current uncertain times.
The company’s business is low risk, diversified, and highly regulated. With a 72% payout ratio and a dividend yield of 3.6%, Fortis should become increasingly popular this year. Plus, the company has a history of raising the payout ratio, having done so for the last 46 years back-to-back.