In this article, we discuss the 10 best dividend stocks in Canada for 2022. If you want to skip our detailed analysis of these stocks, go directly to the 5 Best High 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).
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Disclosure: None. 10 Best High Dividend Stocks in Canada for 2022 is originally published on Insider Monkey.
