Top TSX Dividend Stocks to Buy for Less Than $50
Dividend stocks can be solid long-term bets if you are investing in companies that have the potential to grow their earnings consistently. What’s more, investors don’t require significant capital to start investing. So, for investors with less capital, here are some of the top dividend stocks you can buy today for less than $50.
Algonquin Power & Utilities
Utility stocks are dependable bets to generate steady income amid all market conditions. Within the utility space, investors can consider adding the shares of Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN) to their portfolios.
The company owns a solid portfolio of regulated and contracted assets that generate solid earnings and cash flows. Algonquin Power is a Dividend Aristocrat that has increased its dividend for 11 years. Furthermore, through its strong capital program, it remains well positioned to expand its high-quality earnings base to support future payouts.
Algonquin Power projects its rate base to increase at a mid-teens rate annually over the next five years. Moreover, it projects its earnings to grow at a CAGR of 7-9% during the same period. It means that Algonquin could continue to increase its shareholders’ value through higher dividend payments.
The sharp recovery in oil prices led by increased economic activity, underinvestment in new supply, and Russia’s invasion of Ukraine turned the fortunes of energy companies, including Suncor Energy (TSX:SU)(NYSE:SU). Higher average price realizations and demand/supply imbalance have significantly boosted Suncor’s financials and, in turn, its share price.
Furthermore, it has allowed Suncor to reduce debt at an accelerated pace, reinstate the dividend to the pre-pandemic levels, and boost shareholders’ returns through share buybacks. Suncor Energy could continue to benefit from higher crude prices, improved volumes, and its focus on reducing costs. Moreover, it could continue to maximize its shareholders’ returns through higher dividend payments.
AltaGas (TSX:ALA) owns a solid portfolio of low-risk regulated assets and a high-growth midstream business. The steady rate base growth in its regulated utility assets and strong exports in the midstream operations have driven its stock price higher over the past year and led the company to boost its shareholders’ returns through consistent dividend growth.
It’s worth mentioning that AltaGas raised its dividend by 4% in 2021. Further, it announced a 6% growth in its 2022 dividend. AltaGas is confident of achieving 5-7% dividend growth annually through 2026. It projects its rate base to grow at a CAGR of 8-10% during the same time, which will expand its earnings base and support higher dividend payments. Furthermore, AltaGas is confident of growing its export volumes by 10% annually in the medium term, which is positive and should support its payouts.
Telus (TSX:T)(NYSE:TU) has consistently enhanced its shareholders’ value through its multi-year dividend growth program. This telecom giant has been paying and growing its dividend for a very long period. It’s worth mentioning that Telus, thanks to its profitable growth, has returned about $15.7 billion in dividends since 2004.
Telus’s robust investments in product development, 5G network expansion, and broadband build position it well to deliver strong earnings in the coming years. Moreover, its diverse asset mix, ability to add new customers, and operating efficiency will likely cushion its profitability and drive future dividends.
Before you consider Algonquin Power and Utilities, we think you’ll want to hear this.
Our nearly S&P/TSX market doubling Stock Advisor Canada team just released their top 10 starter stocks for 2022 that we believe could be a springboard for any portfolio.
Want to see if Algonquin Power and Utilities made our list? Get started with Stock Advisor Canada today to receive all 10 of our starter stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more.
See the 10 Stocks
* Returns as of 4/14/22
setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Passive Income: How to Easily Earn $65/Week 100% TAX FREE!
3 of the Best Dividend Stocks to Combat Inflation and Rising Interest Rates
3 Canadian Stocks to Begin Your Wealth-Creation Journey
Oil Stocks Are Dirt Cheap: Here’s 1 Buffett Is Buying
Passive Income: Top 2 Dividend Stocks for Steady Gains
Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends ALTAGAS LTD. and TELUS CORPORATION.
37 total views, 2 views today