Published on 29 Nov 2022 on Insider Monkey via Yahoo Finance
11 Best Canadian Dividend Stocks To Buy Now
In this article, we discuss 11 best Canadian dividend stocks to buy now. You can skip our detailed analysis of Canadian dividend stocks and their performance and go directly to read 5 Best Canadian Dividend Stocks To Buy Now.
The Canadian stock market regained its footing last year after suffering heavily in the face of the pandemic in 2020. The stocks recorded their best year in over a decade, returning 22% in 2021, according to a report by Bloomberg. Though the performance of Canadian equities is not very promising this year, the Canadian benchmark index is still surpassing the S&P 500, its American counterpart. S&P/TSX Composite Index reported a 4.18% decline year-to-date, compared with a 16.8% drop in the broader market, as of the close of November 27.
Given the market volatility, investors around the world are increasingly considering dividend investments to glide through this uncertain period. Over the years, dividend stocks have balanced out the ill effects of inflation as companies with strong dividends continued with their payouts. According to a report published by RBC Global Asset Management, dividends have represented over 30% of the total return derived from the Canadian equity market in the last 30 years. The report also mentioned that dividend growth surpassed inflation in Canada in the past 20 years. The annual dividend growth rate of the S&P/TSX from 2002 to 2022 came in at 7.9%, while CPI recorded a 2.2% growth during the same period.