10 dividend stocks to invest in August for passive income

Dividends are paid out of net profits and cash balance. The companies that pay regular dividends signal substantial cash at hand and the ability to withstand any temporary liquidity concern arising out of business. For investors, it also demotes that these companies have a healthy working capital balance

Let us explore such 10 dividend stocks from different sectors.

1. Enbridge Inc (TSX: ENB)

Enbridge is one of Canada’s largest natural gas distribution companies. It transports hydrocarbons across Canada and the US. The oil and gas company is ranked as one of the most actively traded stocks on the Toronto Stock Exchange.

The closing price was C$ 49.18 on Jul 30, 2021, up nearly 35 per cent in the last nine months but it only jumped by 15 per cent in the past year.

The company has announced the next set of quarterly dividends of C$ 0.835 apiece to be paid on September 01, 2021, historically yielding 6.79 per cent.

The company posted GAAP earnings of C$ 1.4 billion in the second quarter of 2021 which decreased from C$ 1.6 billion in the second quarter of FY2020. The adjusted EBITDA was C$ 3.3 billion.

The stock earnings per share (EPS) of 3.13 and debt to equity ratio (D/E) of 1.26

2. Labrador Iron Ore Royalty Corporation (TSX:LIF)

The steel producer is among the top dividend-paying companies across the Canadian equity markets. It holds a market cap of C$ 3.18 billion with 64 million outstanding shares.

The stock price rocketed 95 per cent in the past year and closed at C$ 49.61 apiece on July 30, 2021.

The investors recently earned quarterly dividends of C$ 1.75 apiece on July 26, 2021 (payable date). The historical dividend yield is 14.11 per cent and the five-year dividend growth rate is 22.48

The revenue increased from C$ 48.3 million in Q1 FY2020 to reach C$ 65.7 million in Q1 FY2021, an increase by 36.02 per cent year-over-year (YoY). The increase in revenue resulted from the increase in demand for iron ore and an increase in iron ore prices. The net income was C$ 1.35 per share in Q1 FY2021, grew by 86 per cent YOY.

The EPS of the company stands at 4.17, and the price-to-equity (P/E) ratio is 11.90, as per TMX data

3. Pembina Pipeline Corporation (TSX:PPL)

Pembina Pipeline is an integrated energy infrastructure company that deals in natural gas liquids and owns gas processing facilities spanning operations in Canada.

The energy company’s market cap C$ 22.72 billion and has outstanding shares of 549.96 million.

The stock price closed at 41.24 (July 30, 2021) and is trading 0.94 per cent below its 52-week high of C$ 41.63 (June 16, 2021).

The next set of monthly dividends of C$ 0.21 apiece are expected to be paid on August 13, 2021. The five-year average dividend growth has been 6.72.

The management of the company remarks that Q1 FY2021 benefitted from higher natural gas liquids and crude oil. The total revenue posted was C$ 2,045 million in Q1 FY2021, which increased from C$ 1,671 in Q1 FY2020, and the earnings stand at C$ 320 million. The price-to-book (P/B) value stood at 1.54.  

4. Great-West Lifeco Inc (TSX: GWO)

Great West Lifeco is one of the big Canadian insurance companies providing individual and group insurance operating in US and Europe. Stocks of this C$ 34.86-billion company closed at C$ 37.54 on July 30, 2021 and trading 59 per cent above its 52-week low of C$ 23.50 apiece as on July 31, 2020. The stock spiked by 55 per cent in the past one year.

The last quarterly dividend of C$ 0.438 apiece was paid on June 30, 2021, yielding 4.66 per cent. The five-year dividend grew at 5.63.    

The total premium earned was C$ 14,361 million for the quarter ending March 31, 2021 and the net income was C$ 740 million.

The EPS stands at 3.57 and the P/E ratio is 10.50. The return on equity (ROE) is 15.60 per cent

Copyright © 2021 Kalkine Media

5. BCE Inc (TSX: BCE)

This telecom giant provides wireless and internet services, broadband, landline, and television services in Canada. The company has a market cap of C$ 56.44 billion.

The stock spiked nearly 10 per cent in the past year and closed at C$ 62.27 apiece (July 30,2021)

It paid quarterly dividends of C$ 0.875 apiece July 07, 2021, yielding 5.21 per cent.

The operating revenue as per quarterly report was C$ 5,705 million in Q1 FY2021, up 1.2 per cent YoY. The net earning stood at C$ 687 million, down 6.3 per cent YoY.

The EPS stood at 2.72 and P/B ratio of 3.12. The company posted ROE of 13.26 per cent.

6. Capital Power Corporation (TSX: CPX)

A C$ 4.87-billion company produces natural gas, coal, wind, solar, and other renewable energy.

Capital Power stock is trading 58 per cent above the 52-week low of C$ 26.78 (July 27, 2020) and closed at C$ 42.30 apiece on Friday. It returned nearly 49 per cent in the past year.

The company is expected to pay a quarterly dividend of C$ 0.547 apiece on October 29, 2021. The dividend yield 5.17 per cent.

For the quarter ending June 30, 2021, the total revenue stood at C$ 332 million, down from C$ 397 million for the quarter ended June 30, 2021. The company incurred a net income of C$ 20 million.

The EPS stands at 1.73, and the P/E ratio is 24.50.

7. Canadian Imperial Bank of Commerce (TSX: CM)

Canadian Imperial Bank of Commerce (CIBC), one of the top six banks in Canada, holds a market cap of C$ 64.71 billion. The scrips closed at C$145.07 apiece on Friday.

The stock rose by nearly 56 per cent in the past year and is currently hovering between its 52-week high and low prices. However, the stock price increased only 33 per cent on a year-to-date (YTD) basis.

It recently paid a quarterly dividend of C$ 1.46 apiece on July 28, 2021. The dividend yield was 4.02 per cent

The P/E ratio stands at 12.20 while the EPS being 11.89

8. Emera Incorporated (TSX:EMA)

Emera engages in generating and transmitting electricity across North America and Canada. The company holds a market cap of C$ 14.93 billion and has 256.07 million shares outstanding.

The stock is trading at C$58.19, nearly 0.82 per cent below its 52-week low of C$ 58.67 apiece and 18 per cent above its 52-week high of C$ 49.66 apiece (February 24, 2021). The energy stock only returned 9 per cent in the last nine months and 5 per cent over the past year

Emera is expected to pay quarterly dividends of C$ 0.637 apiece on August 16, 2021. The stock offers dividend yield of 4.38 per cent.

The Q1 FY2021 reported net income of C$ 273 million and on a per share basis, it was C$ 1.08, which decreased from C$ 523 million or C$ 2.14 per common in Q1 FY2020.

The ROE of the company was 8.30 per cent, and the EPS stood at 2.74.

9. Fortis Inc (TSX: FTS)

Fortis is a utility transmission and distribution company engaged in transmitting high-voltage energy across Canada and United States. The distribution company is worth C$ 26.66 billion in terms of market cap.

The  stock price closed at C$ 56.58 and is trading nearly 16 per cent above its 52-week low of C$ 48.97 (February 26, 2021). It gained 8.8 per cent on a year-to-date (YTD) basis.

The company announced a quarterly dividend of C$ 0.505 apiece to be paid on September 01. The dividend yield offered is 3.57 per cent.

The company has an EPS of 2.64 and ROE of 7.12 per cent.

10. Royal Bank of Canada (TSX: RY)

With a market cap of over C$ 180 billion, Royal Bank of Canada is the second biggest company trading on the TSX. The lender is scheduled to pay its next set of quarterly dividends of C$ 1.08 apiece on August 24, 2021. The currently offers a dividend yield of 3.42 per cent.

The stock price grew by 35 per cent in the past year and is trading nearly 2 per cent below its 52-week low of C$ 129.40 (July 16, 2021).

The bank posted a ROE of 18.06 per cent, ROA of 0.91 per cent and EPS of 9.85.