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Highlights
- eliable dividend income is often a key element for income investors, especially amid uncertain market situations such as rising inflation.
- Although bringing inflation down might take time, Canadians can pick quality companies that could pay-out steady dividends in the long run along with stable returns when the market recovers.
- A railroad stock mentioned here hiked its quarterly dividend by 19 per cent for 2022.
Reliable dividend income is often a key element for income investors, especially amid uncertain market situations such as rising inflation.
While bringing down inflation can take time, investors can choose to explore quality stocks of companies that are likely to pay steady dividends in the long run along with their returns.
Let us discuss some such dividend stocks from the TSX.
1. Enbridge Inc (TSX: ENB)
Enbridge increased its quarterly dividend by three per cent for the fiscal year 2022.
The Calgary-based midstream energy company, which currently has a market capitalization of over C$ 107 billion, is scheduled to pay a dividend of C$ 0.86 per share to its shareholders on March 1 against an ex-dividend date of February 14.
The Canadian energy infrastructure company recorded C$ 2.29 billion as distributable cash flow in the quarter ending on September 30, 2021, as compared to C$ 2.08 billion a year ago.
Enbridge stock closed at C$ 53 per share on Friday, January 28. The midstream energy scrip swelled by roughly 22 per cent in the last one year.
Also read: 2 TSX growth stocks that can outperform the market in the long run
2. Fortis Inc (TSX: FTS)
Fortis Inc, with an ex-dividend date of February 14, is set to pay a quarterly dividend of C$ 0.535 per share to its shareholders on March 1.
The St John’s, Newfoundland-headquartered utility provider recorded net earnings of C$ 295 million in Q3 FY2021.
In addition, the C$ 28-billion market cap company reaffirmed its average annual dividend growth guidance of six per cent through 2025.
Stocks of Fortis Inc closed at C$ 59.80 apiece on Friday, having climbed almost 16 per cent in a year.
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3. Canadian National Railway Inc (TSX: CNR)
Canadian National Railway also hiked its quarterly dividend by 19 per cent for 2022.
The railroad giant is set to distribute a dividend of C$ 0.733 apiece on March 31, against an ex-dividend date of March 9.
The Montreal-based company, which has a five-year dividend growth rate of 10.95 per cent, saw its revenue stand at C$ 3.75 billion in the fourth quarter ending on December 31, 2021.
CNR stock closed at C$ 153.05 apiece on Friday. The rail stock has surged by nearly 15 per cent in the past nine months.
Bottomline
Investors pursuing investment opportunities based on technical and fundamental background checks can see notable dividend income along with quality returns in the long term.
However, one should bear in mind that investing in even the most robust companies cannot guarantee magical returns as their stocks are also subject to market volatility and can be impacted by certain events.
Also read: Rogers (RCI.B) & BCE Inc: 2 TSX telecom stocks to watch in 2022
