5 best dividend-paying Canadian stocks of 2021

Dividend payout is one of the essential factors to consider while investing in stocks. Apart from returns, some stocks can provide a stable dividend income to investors and enhance their financial profile.

So, let’s look at some of the best Canadian dividend-paying stocks of 2021.

1.    First Capital Real Estate Investment Trust (TSX:FCR.UN)

First Capital Real Estate Investment Trust (REIT), which owns and operates mixed-use real estate assets in Canada, reported a net income of C$ 181.5 million in the third quarter of fiscal 2021, as compared to C$ 11.3 million a year ago.

The REIT is expected to deliver a monthly dividend of C$ 0.036 apiece on January 17 next year. Its ex-dividend date is December 30.

First Capital’s stock zoomed by about 32 per cent on a year-to-date (YTD) basis. It closed at C$ 17.89 apiece on Thursday, November 16, after hitting a day high of C$ 18.13.

Also read: Top 4 penny dividend stocks of 2021

2.    Topaz Energy Corp (TSX:TPZ)

Calgary, Alberta-headquartered royalty and energy firm Topaz Energy Corp hiked its quarterly dividend by 20 per cent year-over-year (YoY). It is scheduled for a quarterly dividend payout of C$ 0.24 apiece on December 31. 

Its free cash flow was C$ 49.8 million in the third quarter of fiscal 2021, up by 21 per cent from the previous quarter.

TPZ stock surged by nearly 26 per cent YTD. The energy stock closed at C$ 17.09 apiece on December 16.

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3.    Magellan Aerospace Corporation (TSX:MAL)

Magellan Aerospace Corporation, a Canadian supplier to the aerospace industry, is set to deliver a quarterly dividend of C$ 0.105 apiece on December 31.

The aerospace products and services provider saw its revenue increase by 1.9 per cent YoY to C$ 166.427 million in Q3 FY2021. Its net income was 458 million in the latest quarter.

MAL stock soared by over 10 per cent YTD. Its stock closed at C$ 9.69 apiece on December 16, down by almost three per cent.

4.    Keyera Corp (TSX:KEY)

Keyera Corp, a Calgary, Alberta-based midstream energy company, is expected to pay a monthly dividend of C$ 0.16 apiece on January 17, 2022, against an ex-dividend date of December 21.

The energy company posted net earnings of C$ 70 million in the third quarter of fiscal 2021, up from C$ 33 million in Q3 2020.

KEY stock closed at C$ 27.90 apiece on December 16. It gained by over 23 per cent on a YTD basis.

5.    Pason Systems Inc (TSX:PSI)

Pason Systems Inc, a provider of drilling data solutions and related services, is set to pay a dividend of C$ 0.05 on December 31.

Pason recorded total revenue of 57.705 million in the third quarter of FY2021, up from C$ 23.068 apiece in Q3 2020.

PSI stock grew by over 33 per cent this year. It closed at C$ 10.50 apiece on December 16, up by nearly one per cent.

Also read: How to buy the best dividend stocks in Canada?

Bottom line

Investment in dividend stocks can give way to a regular passive income along with significant returns.

However, investors should closely look at each company’s operational and financial details to gauge its ability to maintain regularity and increase the dividend payout in the long run.