hey guys it's adrian here the canadian in a t-shirt and today i'll be breaking down the
best dividend stocks in canada for 2021. these are all stocks that i personally invest in which pay
out a generous dividend and have a long history of increasing their dividends all while growing
some capital gains as well i've also picked stocks from different industries giving us a
well-diversified portfolio of the canadian market these are all established and secure stocks that
you can hold onto for life and collect that passive income every quarter in this video
i want to give an update of my favorite dividend stocks that i've talked about over the past two
years on this channel so make sure you check out those videos for more in-depth analysis
of each company a lot has changed since then so i want to quickly go over each of these stocks
and give you guys an update i'm only talking about canadian dividend stocks today i'll be
making another video update on my favorite etfs reits and u.s investments while breaking down each
of these stocks i'll be talking about dividends versus capital appreciation the payout ratio and
the amount required to qualify for a drip if you need a refresher on these basics then click the
pop-up at the top right to check out my dividend investing guide and then come back to this video
so with that let's start with the very first stock pick recommendation that i ever made and that's td
toronto dominion bank ticker symbol td.to TD is actually my all-time favorite dividend growth
stock and it's easy to see why td is the third largest company in canada and the second largest
bank right behind royal bank and you really can't get more secure or established than that
for two centuries td has been a staple of the canadian economy and it's one of the best dividend
investments in the world in fact td has never missed a dividend payment in 164 years that's
incredible even through the world wars the great depression and every financial disaster since then
td has always paid a generous dividend and it continues to do so with a solid dividend yield of
3.63% paid out every quarter since i last talked about td they've increased their dividend once
and they'll almost certainly increase it again this year that's because they maintain
a super low payout ratio of only 40% that's amazing that means that only 40% of its profits go out to
dividends leaving them with 60% of their net income to reinvest and grow as a company that's exactly
what you want to see in a dividend growth stock so you can expect to see great capital appreciation
and a dividend increase every year so let's see how much it takes to qualify for a drip remember
a drip allows you to reinvest your dividend and use it to buy more shares of a company rather than
receiving cash and the best part is you don't pay any commission fees at all when you use a drip to
buy yourself extra shares this is the best way to invest in the long term allowing your dividends to
compound automatically giving you true exponential growth right now you'll have to invest 9 700
in td to qualify for a drip let's go through the math with a yield of 3.63 percent our 9700
investment gives us 352 a year in dividends or 88 dollars per quarter td currently has a share price
of 87.37 so every three months our dividends will allow us to purchase an extra share of td
for free to find out how i calculated the strip amount click the pop-up at the top right to check
out my drip explained video where i go over the long-term benefits of drips and i provide a free
excel spreadsheet that you can use to calculate the drip amount for any stock you want looking
at the share price over the past three years you can see an overall upward trend with some ups and
downs and after the market crash of march 2020 td had a remarkable recovery and it's already
back to all-time highs next up we have another favorite dividend stock and that's enbridge
ticker symbol enb to enbridge is the fifth largest company in canada and the largest in the energy
and utility sector they have a diversified income stream including pipelines for oil and natural gas
power distribution and renewable energy and most of this revenue comes from long-term regulated
contracts with this reliable income enbridge is able to pay out a huge dividend yield of seven
percent paid out quarterly since my last video enbridge has increased its dividends twice back in
2020 and again just a few months ago these growing dividends are expected to continue in fact they've
increased their dividends on average by 10% every year for the past 25 years that's amazing to see
but their dividend payout ratio is a little high at 104 that's because they just increased their
dividends and the past year has been pretty rough for the energy sector with volatile oil prices
and disruptions with pipelines plus they have been very aggressive with project expansions
having a payout ratio above 100 isn't a good thing but this is a short-term and recent occurrence
and this is actually lower than most companies in the energy sector right now
and with their long-term contracts and the increasing energy demand as things open up
they definitely have the cash flow to sustain and increase these dividends for years to come so i'm
not concerned in fact with the recent dividend increase it's easier to qualify for a drip you'll
only need twenty eight hundred dollars invested with twenty eight hundred invested the seven
percent yield gives us a hundred and ninety six dollars a year in dividends or forty nine dollars
every quarter with a current share price of 48.20 that's enough for a free share every three months
looking at the share price for the past three years there are definitely some ups and downs
but they're always able to recover fairly quickly enbridge hasn't fully recovered since the market
crash of 2020 but it's getting there and it continues to pay out that amazing dividend
along the way make sure you check out one of my oldest videos for a more in-depth analysis of td
and enbridge next up let's talk about the dividend stocks that i suggested at
the height of the market crash back in april of 2020 starting with [ __ ] ticker symbol bmo.t.o
i've said this before but you really can't go wrong with any of the big five canadian banks
although BMO is definitely one of my favorites they are the eighth largest company in canada the
fourth largest bank and the oldest bank in canada founded in 1817. one of my favorite facts is that
BMO has never missed a dividend payment since 1829. for 200 years BMO has paid out a dividend
every single quarter through wars recessions depressions doesn't matter BMO will pay
you a year ago i suggested to buy BMO at those historic discounts and today they have literally
doubled in price they have fully recovered and their dividend is back to normal with a solid
yield of 3.33 paid out quarterly this dividend is incredibly secure with a payout ratio of only 46
which is great to see and we can definitely expect a dividend increase this year since the last video
the share price has doubled and so it will be much harder to qualify for a drip in fact you'll need
fifteen thousand four hundred dollars in BMO to qualify for a drip with a yield of 3.33 that
will get you 512 dollars a year in dividends or 128 dollars every quarter BMO currently has
a share price of 127 dollars so that will get you a free share every three months obviously fifteen
thousand dollars is a lot of money to invest in one stock so don't worry if you can't qualify
for a drip just invest what you can and you'll be able to enjoy reliable passive income and
long-term capital appreciation looking at the share price over the past three years you can
see that BMO always recovers very quickly and it's already trading at all-time highs once again
next up we have fortis ticker symbol fts.t.o fortis is one of the largest utility companies in
canada and it's one of the most reliable defensive stocks out there they're currently paying out a
great dividend of 3.64 paid out quarterly but the best thing about fortis is their consistency
they have a payout ratio of 73 which is quite low especially for the utility sector right
now and so these dividends are definitely sustainable and will continue to increase
since my last video they've raised their dividends and we can definitely expect another raise this
year in fact fortis has increased its dividends every single year for the past 47 years straight
it has the second longest running streak of dividend raises in canada and there's no way
that the company will risk losing that record if you're wondering what the number one streak is
stick around to the end of this video if you want to qualify for a drip with fortis you'll need to
invest about six thousand two hundred dollars today with 6200 invested and a yield of 3.64
that will get us 225 a year in dividends or 56.42 every quarter and with a share price of 56
that will get us a free share every three months looking at the stock chart over the past three
years we can see a clear upward trend and even through the market crash of 2020 we saw a very
quick recovery and we're basically back to normal next up we have telus ticker symbol t dot t o
make sure you include the dot t o if you only search for t you'll get the american company at
t tell us it's one of the three canadian telecom giants and as such their products and services
are always in demand that reliable income allows them to pay out a generous dividend of 4.6
paid out every quarter they've also committed to increasing their dividend
twice a year until the end of 2022 in fact they just increased their dividend last month but i
should note that because of this telus currently has a high payout ratio of a hundred and thirty
percent this isn't the best news but again this is just a short-term phenomenon the ratio is so
high because of their aggressive dividend growth campaign and because of their large investment in
expanding their 5g capabilities which should boost their earnings in the long run also worth noting
is that telus has a dividend growth streak of 17 years which is always nice to see since last
time their share price has grown but so has their dividend and so they're still one of the easiest
companies to qualify for a drip you'll only need about 2 400 invested with 2400 and a yield of 4.6
you'll collect 110 a year in dividends or 27.60 every quarter telus currently trades for 27.50 a
share so you'll be getting yourself a free share every three months looking at the stock chart
over the past three years there's definitely some volatility but an overall upward trend and a very
nice recovery since the market crash for more in-depth analysis of BMO fortis and telus
check out this video from last year another one of my favorite dividend stocks is manulife
financial ticker symbol mfc.t.o manulife is among the 20 largest companies in canada and they're the
largest insurance company in the country beyond insurance they have a well-diversified list of
financial products including mutual funds gics and mortgages the last time i talked about manulife
was in the middle of the 2020 crash and since then their earnings have continued to grow especially
in the booming asian market even with this rising share price they still pay out a very generous
dividend of 4.48 paid out quarterly even better we can expect a dividend raise very soon since their
dividend payout ratio is so low at only 42 that's amazing to see and manulife has increased their
dividend every year for eight years straight and it's super easy to qualify for a drip you'll only
need about twenty three hundred dollars invested in manulife with twenty three hundred and a yield
of four point four eight percent you'll be getting a hundred and three dollars a year in dividends or
25.76 every quarter they currently have a share price of 25 so that will get us a free share
every three months looking at the share price over the past three years we can see an overall
upward trend and a very nice recovery since the market crash so we're basically back to normal
up next we have tc energy ticker symbol trp.to tc energy is currently the 11th biggest company in
canada and one of the largest in the energy sector like most pipeline stocks they pay out a very
generous dividend of 5.4 which they just increased last quarter in fact they have a 20-year streak of
dividend raises which is awesome but now to the bad news they currently have a high payout ratio
of a hundred and thirty percent this is in line with the rest of the energy sector over
the past few months with volatile oil prices and other disruptions but there is some news
specific to tc energy as well two days ago it was announced that the keystone pipeline was cancelled
the construction was already halted earlier this year but now it's cancelled entirely as
you can imagine this will affect tc's earnings and we can probably expect a dip in the share
price over the next week but this is a dip that i intend to take advantage of tc energy still has a
massive network of natural gas pipelines and power generation which is still extremely profitable
and the demand for energy will continue to grow even with the setback if you want to qualify for a
drip you'll need to invest 4 800 let's check out the math with 4 800 and a yield of 5.4 percent
that will get us 259 a year in dividends or 64.80 every quarter its share price is currently 64.47
so that gets us a free share every three months looking at the stock price over the past three
years we can see an overall upward climb with some volatility since the market crash it hasn't fully
recovered yet but it's getting there next up we have a stock which will become the very first
canadian dividend king and that's canadian utilities ticker symbol cu dot to to no surprise
canadian utilities is one of the largest utility companies in canada and as such they are a great
defensive stock and source of passive income they're currently paying a dividend of 4.94
paid out quarterly and they just increased their dividend last quarter with this raise
canadian utilities has increased its dividend every single year for 49 years straight they are
the longest running dividend aristocrat in canada and in the next two years they will become the
very first dividend king in canada meaning that they've increased their dividend for at least
50 years straight with such a historic record on the horizon there's no way they'll risk cutting
their dividend but with this recent dividend raise they do have a high payout ratio of 138 percent
this is much higher than usual but we are seeing this across the entire energy and utility sector
since this is such a short-term phenomenon i'm not too concerned and again canadian utilities
has reliable income from long-term rate regulated contracts and they've been spending money on
improving their infrastructure so let's hope that their earnings improve next quarter and bring that
ratio down to a more manageable 70 range the good news is that it's very easy to qualify for a drip
you'll only need about twenty nine hundred dollars invested with a yield of four point
nine four percent that will get us a hundred and forty three dollars a year in dividends or thirty
five eighty one every quarter and with a share price of 35.63 that's enough for a free share
every three months looking at the stock chart over the past three years you can see a reliable upward
climb until the crash of 2020. since then there's been some volatility but it is starting to recover
for more in-depth analysis of manulife tc energy and canadian utilities check out my video from
last summer if you're not sure how to actually buy these stocks click the pop-up at the top right
to watch my questrade tutorial where i give a step-by-step walkthrough on how to buy stocks and
etfs using questrade my favorite online broker and if you want to get started with questrade
click my referral link in the box below and you'll get $50 in commission free trade rebates for the
first 30 days when you sign up that basically means that your first 10 stock trades will be
commission free that saves you $50 dollars plus i'll get a small referral bonus as well
and since we're only dealing with canadian stocks here you can also use wealth simple trade which
doesn't charge you any commission fees when you buy stocks or etfs it's a great platform if you
stick to buying canadian stocks especially for beginners who want the lowest fees possible
if you use my referral link below you'll get a $25 cash bonus when you sign up and trade at least $100
worth of stocks or etfs for all these stocks make sure you're buying them on the toronto
stock exchange in canadian dollars so always include the ".TO" in the ticker symbol
to avoid buying them in u.s dollars and wasting money on currency conversion fees and to get the
most out of your investment make sure you hold these in your tax sheltered accounts like your
tfsa or your rrsp to avoid paying taxes on these dividends to learn how to maximize your tax-free
growth check out my tax videos here if you'd like to see exactly which stocks i'm invested
beyond the ones in this video and if you want to help support my channel hit that join button down
below to gain access to my exclusive videos like my tfsa portfolio reveal and to see which stocks
i'm buying every two weeks but remember don't just blindly follow a random guy on youtube
everyone has their own financial goals and circumstances don't just copy what i do but
i hope that seeing my portfolio might offer some guidance especially if you're just getting started
so there you have it those are my all-time favorite canadian dividend stocks in 2021
thanks for watching guys and be sure to like comment and subscribe if you found this video
helpful every thumbs up and comment really does help me build this channel on youtube and hit that
bell icon to be notified of my new videos and if you'd like to follow me on instagram or facebook
@CanadianTShirt click the link in the box below or click the links on my homepage
thanks everyone and i'll see you guys on the next episode of the canadian in a t-shirt bye guys