Top Dividend Stocks to Watch for a Diversified Portfolio

2 min read | August 09, 2024 12:00 AM EDT | By Team Kalkine Media

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Building a well-diversified portfolio involves selecting a mix of stocks that offer both growth and income potential. Fortunately, there are many options available for those looking to expand their portfolios. Here are two compelling stocks to consider, both trading under $60.

Canadian Utilities (TSX:CU)

Utility stocks are known for their defensive qualities, and Canadian Utilities stands out as a leader in this sector.

Utilities are attractive due to their business model, which relies on regulated, long-term contracts. This structure provides a stable and recurring revenue stream as long as the utility continues to operate.

Canadian Utilities benefits from this model, allowing the company to invest in growth while paying out a substantial dividend. The current dividend yield is 5.53%, which can be used to generate additional shares through reinvestments.

Additionally, Canadian Utilities is one of only two Dividend Kings, having increased its dividend annually for an impressive 52 years. This track record of consistency makes Canadian Utilities a strong candidate for a long-term investment.

Enbridge (TSX:ENB)

Enbridge offers a compelling alternative for those seeking a mix of defensive stability and growth potential.

As one of the largest energy infrastructure companies globally, Enbridge is renowned for its extensive pipeline network, which transports substantial volumes of crude oil and natural gas daily. This core business generates significant revenue and adds defensive strength to the company.

Enbridge's appeal is further enhanced by its growing renewable energy segment. The company has invested heavily in this area over the past decade, with around 40 facilities across North America and Europe. Additionally, Enbridge operates the largest natural gas utility in North America, which further contributes to its defensive qualities.

A notable feature of Enbridge is its impressive quarterly dividend yield of 6.92%. The company has a long history of increasing its dividend annually for over three decades, reinforcing its attractiveness as a stable and rewarding stock.

Both Canadian Utilities and Enbridge offer strong prospects for long-term stability and growth, making them noteworthy considerations for expanding a diversified portfolio.

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