In this article, we discuss the 10 best dividend stocks in Canada for 2022.
The Canadian economy rebounded strongly in the third quarter, even though analysts remain cautious of the Omicron variant looming ahead. The economic output of Canada is expected to grow at a faster than anticipated rate of 3.9% in 2022 and 2.8% in 2023. As supply chain challenges recede, inflation is forecasted to stabilize to normal levels, until the employment rate post COVID-19 increases.
Canadian Economy Outlook 2021
In the third quarter of 2021, the Canadian economy grew at an annualized rate of 5.4%, which exceeded analysts’ estimates of a 3% gain. Mainly contributing to the GDP were crude oil exports, and heavy household spending on consumer discretionary and staple products, from clothing to personal grooming services, and pent up demand after nationwide lockdowns resulted in a strong Q3.
For financial resilience in times of extreme uncertainty, unemployment, and pay cuts, dividend investing offers a passive stream of reliable income that helps investors stay put in times of distress. Companies like the Royal Bank of Canada (TSX:RY.TO), Enbridge Inc. (NYSE:ENB), Brookfield Asset Management Inc. (NYSE:BAM), National Bank of Canada (TSX:NA.TO), and Suncor Energy Inc. (NYSE:SU) are some of the most renowned Canadian dividend stocks that are considered by investors to strengthen their income portfolio.
Photo by Viacheslav Bublyk on Unsplash
Our Methodology
To select the best high dividend stocks in Canada for 2022, we considered important metrics like long term growth catalysts, company fundamentals, and analyst ratings. We selected stocks with over 5% forward dividend yield, ranking the companies according to the yields.
Best High Dividend Stocks in Canada for 2022
10. Choice Properties Real Estate Investment Trust (OTC:PPRQF)
Dividend Yield as of December 16: 5.06%
An unincorporated, open-ended REIT from Toronto, Choice Properties Real Estate Investment Trust (OTC:PPRQF) is the biggest real estate investment trust in Canada, involved in commercial and residential properties. Managing a high-quality diversified portfolio with more than 66 million square feet of leasable area, Choice Properties Real Estate Investment Trust (OTC:PPRQF)’s portfolio consists of retail properties leased via its strategic partnership with the leading Canadian retailer, Loblaw Companies Limited. Choice Properties Real Estate Investment Trust (OTC:PPRQF) also offers industrial, office, and residential properties across attractive locations in Canada.
On December 16, Choice Properties Real Estate Investment Trust (OTC:PPRQF) declared a C$0.0617 per share monthly dividend, payable on January 17, 2022.
Choice Properties Real Estate Investment Trust (OTC:PPRQF) announced on November 3 its Q3 results, posting a revenue of C$331.29 million, an increase as compared to C$324.13 million in Q3 2020. The company also reported a Q3 FFO of C$0.239.
RBC Capital analyst Pammi Bir raised the price target on Choice Properties Real Estate Investment Trust (OTC:PPRQF) to C$16 from C$15.50 and kept a Sector Perform rating on the shares on November 12.
Choice Properties Real Estate Investment Trust (OTC:PPRQF) is one of the best Canadian high dividend stocks for 2022, with a forward yield of 5.06%, in addition to Royal Bank of Canada (TSX:RY.TO), Enbridge Inc. (NYSE:ENB), Brookfield Asset Management Inc. (NYSE:BAM), National Bank of Canada (TSX:NA.TO), and Suncor Energy Inc. (NYSE:SU).
9. TransAlta Renewables Inc. (OTC:TRSWF)
Dividend Yield as of December 16: 5.13%
TransAlta Renewables Inc. (OTC:TRSWF), a hydroelectric power generation company from Calgary, Canada, posted on November 9 a third quarter AFFO of C$0.21. The quarterly revenue jumped 20% from the preceding year quarter, totaling C$114 million.
On October 26, TransAlta Renewables Inc. (OTC:TRSWF) declared a per share monthly dividend of C$0.0783, payable on January 31, February 28, and March 31, respectively.
National Bank analyst Rupert Merer on December 2 lowered the price target on TransAlta Renewables Inc. (OTC:TRSWF) to C$19 from C$20 and kept a Sector Perform rating on the shares.
Canadian independent power producer TransAlta Renewables Inc. (OTC:TRSWF) announced on December 3 that its 206.4 megawatt Windrise Wind LP facility in Alberta has been operational since November 10.
Offering a forward dividend yield of 5.13%, TransAlta Renewables Inc. (OTC:TRSWF) is one of the best high dividend stocks in Canada for 2022.
8. BCE Inc. (NYSE:BCE)
Dividend Yield as of December 16: 5.55%
BCE Inc. (NYSE:BCE) is a mass media and telecommunications company, headquartered in Quebec, Canada. BCE Inc. (NYSE:BCE) offers fixed line, mobile telephony, internet services, digital television, radio broadcasting, and print services.
In the third quarter of 2021, 15 hedge funds in the database of 867 elite funds monitored by Insider Monkey were bullish on BCE Inc. (NYSE:BCE), with stakes worth $129.1 million. This is compared to 14 funds in the preceding quarter, with a total stake value of $113.2 million.
BCE Inc. (NYSE:BCE), on November 4, declared a dividend of C$0.875 per share, payable on January 15 to shareholders of record on December 15. The Q3 EPS totaled $0.66, in line with analysts’ estimates. Revenue over the period increased 5.62% year-over-year to $4.68 billion, missing estimates by $131.74 million.
Desjardins analyst Jerome Dubreuil raised the firm’s price target on BCE Inc. (NYSE:BCE) to C$66 from C$64 and kept a Hold rating on the shares on November 8.
John Overdeck and David Siegel’s Two Sigma Advisors is the biggest BCE Inc. (NYSE:BCE) stakeholder as of September this year, increasing its stake in the company by 42%, with 904,927 shares worth $45.3 million.
7. Suncor Energy Inc. (NYSE:SU)
Dividend Yield as of December 16: 5.56%
Suncor Energy Inc. (NYSE:SU) is an oil and gas company from Calgary, Alberta, known for producing synthetic crude, petroleum, natural gas, petrochemicals, and other relevant products. The company offers a dividend yield of 5.56%, making it one of the best dividend stocks in Canada for 2022.
On November 19, Scotiabank analyst Jason Bouvier raised the price target on Suncor Energy Inc. (NYSE:SU) to C$37 from C$33 and kept an Outperform rating on the shares.
At the end of September, 32 hedge funds in the database of elite funds monitored by Insider Monkey reported owning stakes in Suncor Energy Inc. (NYSE:SU), worth $1.08 billion. In the previous quarter, the same number of funds were bullish on the stock, with a total stake value of $1.11 billion. D E Shaw is one of the leading company stakeholders as of Q3 2021, with 7.60 million shares valued at $157.5 million.
Suncor Energy Inc. (NYSE:SU)’s 2022 guidance reflects strong operational performance across all assets, as well as continued capital and cost discipline. The guidance supports the previous announcements of doubling the dividend, increasing share buybacks, and lowering the capital program by $300 million.
6. Superior Plus Corp. (OTC:SUUIF)
Dividend Yield as of December 16: 5.57%
Superior Plus Corp. (OTC:SUUIF) declared a C$0.06 per share monthly dividend on December 9, payable on January 14, 2022. Serving customers across almost 780,000 locations in the US and Canada, Superior Plus Corp. (OTC:SUUIF) is a distributor of propane, distillates, and related products and services.
Canaccord analyst John Bereznicki on November 16 upgraded Superior Plus Corp. (OTC:SUUIF) to Buy from Hold with a price target of C$16.50, down from C$17. With the stock down 11% since the company’s Q2 results in August, the analyst sees a more attractive entry point.
On November 11, the company posted its Q3 results, announcing a loss per share of C$0.24. The quarterly revenue for Superior Plus Corp. (OTC:SUUIF) was up 41.2% year-over-year, reaching C$362.6 million.
Offering a forward yield of 5.57%, Superior Plus Corp. (OTC:SUUIF) is one of the best Canadian high dividend stocks for 2022, in addition to Royal Bank of Canada (TSX:RY.TO), Enbridge Inc. (NYSE:ENB), Brookfield Asset Management Inc. (NYSE:BAM), National Bank of Canada (TSX:NA.TO), and Suncor Energy Inc. (NYSE:SU).
5. Capital Power Corporation (OTC:CPXWF)
Dividend Yield as of December 16: 5.65%
Capital Power Corporation (OTC:CPXWF) reported its Q3 earnings on October 27, posting an EPS of C$0.23. The revenue fell 16.8% year-over-year, equaling C$377 million. Capital Power Corporation (OTC:CPXWF) is an independent power company based in Edmonton, and operates by acquiring a portfolio of power generation facilities that use multiple energy sources for providing about 5,100 megawatts of power.
Payable on January 31, 2022, Capital Power Corporation (OTC:CPXWF) announced a quarterly dividend of C$0.5475 on October 26, for stakeholders of record on December 31.
BMO Capital analyst Ben Pham lowered the price target on Capital Power Corporation (OTC:CPXWF) on December 3 to C$42 from C$43 and kept a Market Perform rating on the shares.
With a forward yield of 5.65%, Capital Power Corporation (OTC:CPXWF) is one of the top high dividend stocks in Canada for 2022.
4. SmartCentres Real Estate Investment Trust (OTC:CWYUF)
Dividend Yield as of December 16: 5.95%
SmartCentres Real Estate Investment Trust (OTC:CWYUF) is one of the most significant Canadian REITs, offering a portfolio of 168 distinguished properties across the country. SmartCentres Real Estate Investment Trust (OTC:CWYUF) properties have an occupancy rate of 97.6%, with the REIT owning $10.2 billion in assets and 34.2 million square feet of income producing retail space.
The Q3 revenue for SmartCentres Real Estate Investment Trust (OTC:CWYUF) increased 4.7% year-over-year, totaling C$195.17 million, as per the quarterly earnings reported by the company on November 10.
On December 6, BMO Capital analyst Jenny Ma raised the price target on SmartCentres Real Estate Investment Trust (OTC:CWYUF) to C$32 from C$31 and kept a Market Perform rating on the shares.
3. Pembina Pipeline Corporation (NYSE:PBA)
Dividend Yield as of December 16: 6.64%
Pembina Pipeline Corporation (NYSE:PBA) is an oil, natural gas, and ethylene storage and transport company.
TD Securities analyst Linda Ezergailis lowered the price target on Pembina Pipeline Corporation (NYSE:PBA) on December 10 to C$44 from C$45 and kept a Buy rating on the stock.
In the third quarter earnings report, published on November 4, Pembina Pipeline Corporation (NYSE:PBA) announced earnings per share of $0.53, beating estimates by $0.01. Revenue over the period jumped 43.45% to $1.72 billion, exceeding estimates by $218.91 million.
John Overdeck and David Siegel’s Two Sigma Advisors is one of the leading Pembina Pipeline Corporation (NYSE:PBA) stakeholders as of Q3 2021, increasing its stake in the company by 57%, holding 336,083 shares worth $10.65 million. Overall, 8 funds in the third quarter database of Insider Monkey were long Pembina Pipeline Corporation (NYSE:PBA), with total stakes amounting to $62.6 million.
2. Keyera Corp. (OTC:KEYUF)
Dividend Yield as of December 16: 6.90%
Keyera Corp. (OTC:KEYUF) is one of the biggest oil and gas transportation and storage companies from Canada, offering its services to major Canadian producers to bring their product to market. Keyera Corp. (OTC:KEYUF) deals in the safe transportation of propane, ethane, butane, condensate, and iso-octane, which are all natural gas liquids.
On December 10, Keyera Corp. (OTC:KEYUF) announced a monthly dividend of C$0.16 per share, payable on January 17, 2022. Offering a high forward yield of 6.90%, Keyera Corp. (OTC:KEYUF) is one of the best dividend stocks in Canada for 2022.
In the third quarter, on November 3, Keyera Corp. (OTC:KEYUF) reported an adjusted EBITDA of C$214 million, an increase as compared to C$196 million in Q3 2020. Keyera Corp. (OTC:KEYUF) also published a GAAP EPS of C$0.32 for the period.
Wells Fargo analyst Praneeth Satish on December 16 downgraded Keyera Corp. (OTC:KEYUF) to Equal Weight from Overweight with a price target of C$29, down from C$34. The analyst sees a full valuation at current share levels and expects minimal share buybacks in the near-term.
1. Enbridge Inc. (NYSE:ENB)
Dividend Yield as of December 16: 7.23%
Enbridge Inc. (NYSE:ENB) declared a C$0.860 per share quarterly dividend on December 7, which reflects a 3% increase from the previous dividend of C$0.835. The dividend will be payable on March 1, 2022 to shareholders of record on February 15.
Enbridge Inc. (NYSE:ENB) is a Canada-based multinational pipeline corporation, transporting crude oil, natural gas, and natural gas liquids via its extensive pipelines across the US and Canada. RBC Capital analyst Robert Kwan on November 29 lowered the price target on Enbridge Inc. (NYSE:ENB) to C$60 from C$61 and kept an Outperform rating on the shares.
Offering a forward yield of 7.23%, Enbridge Inc. (NYSE:ENB) is one of the best high dividend stocks in Canada for 2022. Posting its Q3 results on November 5, Enbridge Inc. (NYSE:ENB) announced an EPS of $0.47, beating estimates by $0.02. The revenue jumped 31.91% year-over-year to $9.21 billion, outperforming estimates by $1.47 billion.
One of the leading stakeholders of Enbridge Inc. (NYSE:ENB) as of the third quarter is Arrowstreet Capital, with 837,902 shares worth $33.3 million. Overall, 24 hedge funds in the database of Insider Monkey were long Enbridge Inc. (NYSE:ENB), up from 19 funds in the preceding quarter.
Here is what ClearBridge Investments has to say about Enbridge Inc. (NYSE:ENB) in its Q2 2021 investor letter:
“On a regional basis, the U.S. and Canada were the top contributors to quarterly performance, of which Canadian energy infrastructure company Enbridge was one of the lead performers. Enbridge owns and operates one of the largest oil and gas pipeline networks in North America. The company also owns regulated gas distribution utilities in Ontario, Canada. Enbridge’s Line 3 Replacement Project received a favorable court ruling regarding the adequacy of its Environmental Impact Statement. This significantly lowers the execution risk for the project and enables the company to place the project into service later in the year.”
You can also take a look at 10 Best Value Stocks in Warren Buffett’s Portfolio and 10 High Dividend Stocks for 2022.
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Disclosure: None. 10 Best High Dividend Stocks in Canada for 2022 is originally published on Insider Monkey.
