Dividend stocks give you an opportunity to generate consistent passive income apart from the regular returns on your investments. That’s why I always recommend long-term investors keep a big part of their total stock portfolio invested in dividend stocks. In this article, I’ll highlight three of the best fundamentally strong TSX dividend stocks that you can buy in September 2021 and hold as long as you want. All these dividend stocks are currently trading below $50 per share.
Enbridge (TSX:ENB)(NYSE:ENB) has been one of my favourite high-dividend stocks on the TSX for a long time now. The company’s large pipeline system transports a large portion of crude oil produced in North America and the total natural gas consumed in the United States. ENB stock currently has a solid dividend yield of nearly 6.7%. Interestingly, its solid dividends have generated extra income for investors for more than 66 years.
After COVID-19-related challenges affected Enbridge’s earnings growth trend last year, it’s expected to get back on track this year. Rising oil prices and surging energy demand due to reopening economies are likely to drive overall financial growth this year. These factors could be the reasons why Street analysts expect Enbridge to report a 15% year-over-year rise in its earnings to $2.78 per share compared to $2.42 per share in 2020.
Apart from its improving pipeline business fundamentals, the company’s resilient business model, diversified sources of cash flow, and increasing investment in renewable energy make its stock even more attractive to buy right now. This high-dividend stock is currently trading at $49.65 per share with about 22.0% year-to-date gains.
Pembina Pipeline stock
Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another energy transportation company that mainly focuses on providing midstream services. Despite being smaller than Enbridge based on market cap, Pembina’s consistent dividend growth, largely predictable cash flows, and reliable business model make it one of the best TSX dividend stocks to buy right now. It has a strong dividend yield of around 6.6%.
After declining by 14% last year, the company’s 2021 revenue is likely to be much higher than its pre-pandemic levels due to rising energy demand and stronger commodity prices. That’s one of the reasons why Pembina Pipeline’s management upgraded its full-year adjusted EBITDA guidance during its latest quarterly earnings event. This amazing Canadian dividend stock has already risen by 28% this year so far to $38.45 per share.
Keyera (TSX:KEY) is another financially strong energy company that rewards its investors with solid monthly dividends. The company mainly focuses on the energy infrastructure business with its extensive interconnected assets and integrated value chain. It currently has a market cap of $6.7 billion.
Just like other energy companies, Keyera’s overall business is benefitting from the ongoing sharp recovery in commodity prices. Also, its recent efforts to drive efficiencies are helping it save costs. These positive factors, along with its strong cash flows and sustainable dividends, make its stock worth investing for income investors. Keyera stock currently trades at $30.38 per share with about 34% year-to-date gains. And it also has an impressive dividend yield of about more than 6% right now — just like Enbridge and Pembina Pipeline.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends KEYERA CORP and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.