In this article, we discuss the 5 best Canadian dividend stocks to buy for 2022. If you want to read our detailed analysis of the Canadian financial market, go directly to read 10 Canadian Dividend Stocks to Buy for 2022.
5. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 27
Dividend Yield: 4.65%
A Canadian oil and natural gas company, Canadian Natural Resources Limited (NYSE:CNQ) recently landed in hot water as oil prices in Canada declined by 20%. However, expecting the recovery in prices soon, recently, Morgan Stanley initiated its coverage on Canadian Natural Resources Limited (NYSE:CNQ) with an Equal Weight rating and a C$53 price target.
In Q3 2021, 27 hedge funds in Insider Monkey’s database reported owning stakes in Canadian Natural Resources Limited (NYSE:CNQ), the same as in the previous quarter. However, the total value of these stakes grew to roughly $957 million in Q3, from $777.1 million in the preceding quarter.
On November 4, Canadian Natural Resources Limited (NYSE:CNQ) increased its quarterly dividend significantly by 25% at C$0.5875 per share. With a dividend yield of 4.65%, the company remains one of the best Canadian dividend stocks to buy. Since the start of 2021, Canadian Natural Resources Limited (NYSE:CNQ) delivered a 61.66% return to shareholders, as of the close of December 14.
4. BCE Inc. (NYSE:BCE)
Number of Hedge Fund Holders: 15
Dividend Yield: 5.52%
BCE Inc. (NYSE:BCE) is a Canadian communications company that provides media and internet services to its consumers. In Q3, the number of hedge funds having stakes in the company grew to 15, from 14 in the previous quarter. These stakes hold a consolidated value of $129.1 million, up from $113.2 million.
BCE Inc. (NYSE:BCE) pays an annual dividend of $2.77 per share. The stock’s current dividend yield stands at 5.52%. In Q3, the company reported solid results, earning C$5.84 billion in revenue, beating estimates by C$100 million. Moreover, BCE Inc. (NYSE:BCE)’s IPTV net subscriber activations grew by 10.2%.
This November, Scotiabank raised its price target on BCE Inc. (NYSE:BCE) to C$68, while maintaining an Outperform rating on the shares. In 2021, the stock surged 16.7%, as of the close of December 14.
3. TC Energy Corporation (NYSE:TRP)
Dividend Yield: 15
Dividend Yield: 5.98%
TC Energy Corporation (NYSE:TRP) is a Canadian energy company that also deals in natural gas and liquid pipelines. The company remains one of the best Canadian dividend stocks to buy, as, over the five years, it has increased its dividend at a CAGR of 10%. Currently, TC Energy Corporation (NYSE:TRP) pays a quarterly dividend of $0.87 per share, with a dividend yield of 5.98%.
In Q3, TC Energy Corporation (NYSE:TRP) posted an EPS of C$0.99, in line with the estimates. Moreover, the company also announced $1 billion in comparable earnings, up significantly from $79 million from the same period last year. Recently, TD Securities set a C$72 price target on TC Energy Corporation (NYSE:TRP), while maintaining a Buy rating on the shares.
At the end of Q3, the number of hedge funds having stakes in TC Energy Corporation (NYSE:TRP) decreased to 15, from 22 in the previous quarter. The value of these stakes is over $84 million. Heathbridge Capital Management was one of the company’s largest shareholders, holding a stake worth $31.3 million.
2. Pembina Pipeline Corporation (NYSE:PBA)
Number of Hedge Fund Holders: 8
Dividend Yield: 6.95%
Pembina Pipeline Corporation (NYSE:PBA) is a Canadian pipeline transport company that also deals in the natural gas processing business. The company reported solid Q3 results, mainly driven by higher crude oil sales. Pembina Pipeline Corporation (NYSE:PBA) posted a GAAP EPS of C$1.01, beating estimates by C$0.32. Moreover, the revenue of C$2.15 billion, also presented a 43.3% growth from the prior-year quarter.
At the end of Q3 2021, 8 hedge funds reported owning stakes in Pembina Pipeline Corporation (NYSE:PBA), down from 15 in the previous quarter. These stakes hold a total value of over $62.6 million. As of the close of December 14, the stock’s year-to-date returns stood at 21.9%.
Pembina Pipeline Corporation (NYSE:PBA)’s five-year dividend growth rate is 7.15% and the company has been paying dividends consistently since 1998, which places it as one of the best Canadian dividend stocks to buy. Recently, JPMorgan initiated its coverage on Pembina Pipeline Corporation (NYSE:PBA) with a Neutral rating and a C$45 price target.
1. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 24
Dividend Yield: 7.14%
At the end of Q3, the hedge fund interest increased in Enbridge Inc. (NYSE:ENB), a Canadian natural gas distribution company. Of the hedge funds tracked by Insider Monkey, 24 hedge funds held stakes in the company in Q3, up from 19 in the previous quarter. These stakes hold a consolidated value of $211.4 million, compared with $166 million in Q2.
Enbridge Inc. (NYSE:ENB)’s dividend has grown at a CAGR of 13.57% over the past ten years. The company recently announced a 3% growth in its quarterly dividend at C$0.860 per share, making it one of the best Canadian dividend stocks to buy. In Q3, Enbridge Inc. (NYSE:ENB) posted an EPS of C$0.59, beating estimates by C$0.03. As of the close of December 14, the stock is up 16.17% year-to-date.
Recently, National Bank lifted its price target on Enbridge Inc. (NYSE:ENB) to C$54, while maintaining an Outperform rating on the shares.
ClearBridge Investments mentioned Enbridge Inc. (NYSE:ENB) in its Q2 2021 investor letter. Here is what the firm has to say:
“On a regional basis, the U.S. and Canada was the top contributor 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 Canadian Dividend Stocks with Over 3% Yield and 10 Best Canadian Gold Stocks To Buy Right Now
