3 TSX dividend stocks to buy as the year-end approaches

Highlights

• Amid rising inflation, many investors are looking to invest in inflation-resistant stocks that can fetch them stable dividend income.
• An oil and gas stock mentioned here hiked its quarterly dividend payouts by 25 per cent in Q3 FY2021.
• A Canadian utility company saw its revenues grow by 40 per cent year-over-year (YoY) in this quarter.

Statistics Canada, on November 17, reported that Canada’s inflation shot up by 4.7 per cent in October 2021. This data has triggered concern among Canadian investors.

While rising vaccination rates and easing of the pandemic rules have led to an economic rebound, the struggling supply chain might delay the expected recovery. Moreover, climate change effects, like the floods and storms in British Columbia, could also fuel the inflation numbers.

3 TSX dividend stocks to buy as the year-end approaches

Amid such tough times, many investors are looking to invest in inflation-resistant stocks that can fetch them stable dividend income.

So, let us explore three actively traded stocks listed on the TSX that have been providing regular dividend payouts.

Also read: 2 off-the-radar TSX dividend stocks to buy

1.    Algonquin Power & Utilities Corp (TSX: AQN)

Canadian utility provider Algonquin Power & Utilities Corp saw its revenues grow by 40 per cent year-over-year (YoY) to US$ 528.6 million in the third quarter of fiscal 2021.

Its adjusted EBITDA surged by 27 per cent YoY to US$ 252 million while adjusted net earnings rose by 11 per cent YoY to US$ 97.6 million in the latest quarter.

Algonquin is set to dole out a quarterly dividend of US$ 0.171 per share, which grew 10 per cent YoY and 9.21 per cent in the last five years, on January 14 next year.

Although the utility stock plummeted by nearly 11 per cent in the last 12 months, it has jumped around one per cent in the past one week.

On Friday, November 19, Algonquin’s stock closed at C$ 17.96 apiece, up by almost eight per cent.

The Oakville, Ontario-based diversified utility company has a market capitalisation of C$ 11.2 billion and a price-to-earnings (P/E) ratio of 14.4. Its return on equity (ROE) was 12.41 per cent on Monday, November 22.

2.    Canadian Natural Resources Limited (TSX: CNQ)

Canadian Natural Resources Limited is engaged in the exploration and development of oil and gas resources to produce natural gas liquids (NGLs), oil and hydrocarbon products.

The Calgary, Alberta-headquartered energy producer recorded net earnings of C$ 2.202 billion in third quarter of FY2021, up from C$ 408 million in the same quarter a year ago.

The company also hiked its quarterly dividend payouts by 25 per cent from C$ 0.47 per share. It is scheduled for a quarterly dividend payment of C$ 0.588 per share on January 5, 2022.

 Image source: © 2021 Kalkine Media Inc

CNQ stock expanded by more than 29 per cent in the past three months and zoomed by nearly 83 per cent in the last 12 months.

The energy stock closed at C$ 51.06 apiece on November 19, down by almost four per cent. Its stock hit a one-year high of C$ 55.19 on November 8.

Canadian Natural held a market capitalization of C$ 60.1 billion and an ROE of 17.87 per cent.

3.    Manulife Financial Corporation (TSX:MFC)

Manulife Financial Corporation is a Toronto-based provider of life insurance and wealth management solutions, with a market capitalization of C$ 47.4 billion.

In the third quarter of FY2021, Manulife’s net earnings stood at C$ 1.6 billion as compared to C$ 2 billion a year ago. Its core earnings marked a YoY growth of 10 per cent to C$ 1.5 billion in the latest quarter.

The Canadian financial service provider is scheduled to pay an increased quarterly dividend of C$ 0.33 per share (up the previous payout of C$ 0.28 per share) on December 20 against an ex-dividend date of November 30.

Stocks of Manulife Financial soared by nearly eight per cent on a year-to-date (YTD) basis. Its stock climbed by roughly 14 per cent in the past year.

MFC scrip closed at C$ 24.43 apiece on November 19, down by more than two per cent. It held an ROE of 13.97 per cent and a debt-to-equity ratio of 0.24 this day.

Also read: 3 TSX financial stocks that sweetened their dividends after OSFI ruling 

Bottom line

The Canadian stock trading universe offers ample investment options when  it comes to regular dividends payouts. However, before investing in a stock, investors should keep in mind that apart from a company’s fundamentals and financials, it is also crucial to assess the sector and general news events can impact the said stock’s performance.