Canadian Dividend Stocks to Buy in 2023: My 4 Top Picks

It’s an interesting time to be a dividend investor. Most dividend stocks offer a lower yield than a GIC (Guaranteed Investment Certificate). That means investors can generate better passive income with lower risk in 2023. 

However, some high-yield dividend stocks still look relatively attractive. Here are the top five dividend stocks that should be on your radar.

Enbridge 

Energy stocks are tricky right now, because investors expect a recession to dampen demand. Lower demand means lower energy prices, which we’re already seeing play out, as crude oil and natural gas drop this year. 

However, Enbridge (TSX:ENB) is strongly positioned, despite this chaos. That’s because its business hinges on total fuel volume distributed across North America. This year, fuel flows across the continent are expected to be strong because a new export market, Europe, has emerged for North American energy. 

Meanwhile, the stock pays a dividend yield of 6.7%, far higher than the typical GIC. That’s why Enbridge is an ideal dividend stock.

BCE

Telecommunications is one of the most stable sectors of the economy — especially if you target one of the largest telecommunications firms that controls much of the market. As of 2021, Bell Canada, or BCE (TSX:BCE) has 11.7 million subscribers, which is the biggest chunk of a market with a population of nearly 40 million. 

That puts the company in a favourable position with tremendous pricing power. Fortunately, much of that pricing power and market dominance translates to better yields for investors. BCE stock offers a 6% dividend yield at the moment and investors can expect this to steadily rise in the years ahead, as Canada’s population continues to expand. 

Keep an eye on this dividend stock. 

Power Corporation 

Diversified financial conglomerate Power Corporation of Canada (TSX:POW) should certainly be on your dividends watch list. The stock offers an attractive yield of 5.8%, which is still higher than a GIC.

The company’s various financial services and alternative investment platforms had a rough year in 2022 but could see an uptick in 2023 as capital markets recover. Meanwhile, the company’s stake in emerging FinTech startups, like Wealthsimple, also offer some growth opportunities. 

Investors looking for a robust yield and a contrarian bet should add Power Corp to their list. 

Alaris Equity

A market downturn is the perfect opportunity for contrarian investors. That’s why Alaris Equity Partners (TSX:AD.UN) may be perfectly positioned in 2023. The company partners with private corporations that are seeking capital to grow. In exchange, the firm receives preferred stocks that give it a recurring stream of cash flow and some upside from price appreciation. 

Put simply, Alaris is an investor in small and midsize businesses. These businesses are struggling but could survive and perform well over the long term after they get a cash infusion from Alaris.

The stock currently offers a 7.8% dividend yield, which is one of the highest on the market. Keep an eye on this stock, if you’re looking for a high-yield, high-reward, long-term bet. 

The post Canadian Dividend Stocks to Buy in 2023: My 4 Top Picks appeared first on The Motley Fool Canada.

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More reading

• Maximize Your Retirement Income With These Top Canadian Dividend Stocks
• Why These Dividend-paying Stocks Are a Must-have for Canadian Retirees
• Better Buy: Royal Bank Stock or Enbridge Stock?
• These TSX Stocks Are a Smart Choice for Generating Passive Income
• Looking for Income in Retirement? These Canadian Dividend Stocks Can Deliver

Fool contributor Vishesh Raisinghani has no position in any of the stocks mentioned. The Motley Fool recommends Alaris Equity Partners Income Trust and Enbridge. The Motley Fool has a disclosure policy.

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