Enbridge
Enbridge (TSX:ENB) operates a highly regulated business, with approximately 98% of its cash flows generated from long-term cost-of-service and take-or-pay contracts. So, its financials are less susceptible to commodity price fluctuations, thus delivering stable and predictable cash flows. Supported by these healthy cash flows, the company has been paying dividends for 69 years while raising its dividends for the previous 29 years at an annualized rate of 10%. The company currently pays a quarterly dividend of $0.915/share, translating into an annual payout of $3.66/share and a forward dividend yield of 6.44%.
Further, Enbridge recently acquired Public Service Company, a natural gas utility company in North Carolina, from Dominion Energy, thus further improving its cash flows and reducing its business risks. The company is also investing $6-$7 billion annually to expand its transmission, distribution, and clean energy businesses. Given these growth initiatives and a healthy liquidity of $18 billion, Enbridge could continue its dividend growth, thus making it an excellent buy.
Telus
The Canadian telecom sector has been under pressure over the last two years due to unfavourable policy changes and higher interest rates. However, I believe the steep pullback has created an excellent buying opportunity in Telus (TSX:T), which has lost around 35% of its stock value compared to its 2022 highs. Amid the pullback, its dividend yield increased to 6.93%.
Moreover, the telecom giant has an impressive record of enhancing shareholders’ returns through dividends and share repurchases. Since 2004, it has paid $21 billion in dividends and $5.2 billion in share repurchases. Amid the digitization of businesses and growth in remote working and learning, the demand for telecommunication services is rising, thus expanding the addressable market of Telus. Further, the company is also strengthening its 5G and broadband infrastructure, which could boost its financials in the coming years. Falling interest rates could improve its profitability, thus making its future dividend payouts safer.
NorthWest Healthcare Properties REIT
NorthWest Healthcare Properties REIT (TSX:NWH.UN) would be another excellent dividend stock to have in your portfolio due to its defensive healthcare portfolio and high yield. It has signed long-term lease agreements with government-backed tenants, thus enjoying healthy occupancy and collection rates. In the second quarter, the company’s occupancy and collection rates were at 96.5%and 99%, respectively.
Moreover, the real estate investment trust has strengthened its balance sheet through its non-core assets sales program. Since its adoption in August last year, the company has sold 46 properties, which have generated $1.4 billion. Also, redeeming its investments in unlisted securities has generated $170 million. The company has utilized the net proceeds from these sales to lower its leverage by repaying higher interest-bearing debts.
Further, NorthWest Healthcare is also developing next-gen properties that could deliver long-term earnings growth for its shareholders. Considering all these factors, I believe the company could continue to pay dividends at a healthier yield. With a monthly dividend of $0.03/share, its forward yield currently stands at 6.7%.
