Investors worldwide are drawn to the perks of dividend investing, and Canada stands out for its notable preference for dividend stocks over growth-focused investments. The popularity of dividend stocks is evident in the success of services like the Dividend Investor at Stock Market News23. In this article, we explore the allure of dividend investing in Canada and highlight three compelling TSX dividend stocks worth considering.


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1. Fortis (TSX: FTS): A Beacon of Stability and Dividend Growth


When it comes to Canadian dividend stocks, Fortis emerges as a top contender. Specializing in regulated gas and electric utilities, Fortis serves over three million customers across Canada, the United States, and the Caribbean. While utility companies may lack the excitement of other sectors, their stability and reliability make them attractive to investors. Fortis, a Canadian Dividend Aristocrat, boasts an impressive 50-year dividend growth streak. The company has committed to raising its distribution by 4-6% annually through 2028, providing investors with a current forward dividend yield of 4.37%.


2. Bank of Nova Scotia (TSX: BNS): A Banking Giant with a Historic Dividend Legacy


Bank of Nova Scotia, part of the Big Five Canadian banks, stands as a testament to enduring dividend stability. Having paid dividends since July 1, 1833, the bank has an unbroken 190-year record of consistent dividend distributions. In the face of economic uncertainties over the decades, Bank of Nova Scotia has maintained its commitment to shareholders. Presently, the stock offers a compelling forward dividend yield of 6.70%, reflecting its status as a reliable income generator.


3. Alimentation Couche-Tard (TSX: ATD): The Underappreciated Dividend Gem


Alimentation Couche-Tard, operating over 14,000 convenience stores across 25 countries, is an often overlooked dividend gem. Despite a relatively low forward dividend yield of 0.78%, the company's dividend-payout ratio is also modest at about 13.3%. This leaves ample room for future dividend growth. Over the past decade, Alimentation Couche-Tard has demonstrated impressive dividend growth, increasing its dividend tenfold since 2013, equating to a remarkable compound annual growth rate of 27%. While not yet in the author's portfolio, the stock holds potential for future inclusion.


Conclusion: Navigating the Canadian Investment Landscape with Dividend Wisdom


The Canadian inclination towards dividend investing reflects a strategic approach to wealth accumulation. Fortis, Bank of Nova Scotia, and Alimentation Couche-Tard exemplify the allure of stable income, historical dividend resilience, and growth potential. For investors seeking to harness the power of dividends, these stocks offer a promising foundation for building a robust and income-focused portfolio in the Canadian market.