If you are a Canadian and are moving on from 2020 and looking forward to a grand year in dividends in 2021, there are some hot picks in the stock market (TSX) right now. Thanks to the COVID-19 pandemic, most of the share prices are still down, which makes it the best time to invest some spare cash you have.

What makes these Canadian dividend stocks some of the best out there are their high dividend yields and the health of the company. The world might be recovering from the impact of the global pandemic that lasted a full year, but some companies might not. So, you have to be careful where you put your money.

So, without further delay, let’s look at 4 of the best Canadian dividend stocks you can grab right now and will be making good returns whole throughout 2021.

4 Canadian Dividend Stocks to Buy for 2021

(1) Enbridge Inc. (ENB.TO)

COVID-19 pandemic hit the transportation industry hard, resulting in the lowest levels of fuel utilization in the world in decades. This resulted in the fear to set in for the energy sector companies in the stock market, thus driving their prices down. But, the world is recovering, and the North American natural gas utility giant, Enbridge becomes one of the most lucrative investment opportunities right now.

Much like most companies in the TSX, the share price of Enbridge Inc. is down from what it was a year ago. In January 2020, the share was trading at $51-$54. As of this article (January 4, 2020), the share is trading at $40.85. This is a bargain itself. However, thanks to Enbridge’s diversification into oil, natural gas, and renewable energy, the company weathers the pandemic.

Despite having the odds against it, Enbridge Inc. has continued to pay dividends all throughout 2020 and was bold enough to continue its tradition of a yearly dividend increase. They are planning to continue this trend in 2021 too.

Enbridge paid out $0.81 per quarter in 2020 and increased it by 3% for $0.835 dividend per quarter for 2021. If you buy the stock right now, this would ensure a massive dividend yield of 8.17% on your investment.

Key Highlights

• 26-year track record of dividend pay and dividend growth
• Market cap of $82 billion
• Above 15% 5-year revenue growth
• Operates in Alberta, Ontario, and Quebec in Canada; and in several parts of the United States.

(2) Bank of Nova Scotia (BNS.TO)

Bank of Nova Scotia is one of Canada’s leading financial institutions operating in North America, Latin America, the Caribbean and Central America, and Asia-Pacific. With a wide range of financial products under its name, the Bank of Nova Scotia weathered the 2020 pandemic.

Bank of Nova Scotia is known for its dividend payments. According to the company website, they have been paying dividends continuously since 1833 until now–that’s 187 years of dividends. And they also claim that they were able to provide a dividend increase in 43 years out of the last 45 years. Impressive!

Unfortunately, the bank did not increase its dividend for the year 2021 but sustained its 2020 quarterly dividend of $0.90 per share. At the current market price of $67.72 per share, this dividend will yield a cool 5.31% per annum. Since they are a company that prides itself on dividend growth, they will likely do so very soon.

The share price is also down by around $7 compared to pre-pandemic high.

Key Highlights

• Market capitalization of $82 billion
• Over $1 trillion in assets
• Highest dividend yield among the top Canadian banks (Eg: Royal Bank of Canada, and TD Bank)
• Stock price almost at the full rebound, showing investor confidence in the company.

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(3) Keyera Corp. (KEY.TO)

Another company in the natural gas sector is Keyera Corporation. The company engages in the processing, transportation, storage, and marketing services of oil and gas in North America.

Keyera Corporation is another company boasting its dividend payment and dividend growth. The company has paid continuous dividends since its inauguration in 2003 and has increased dividends every year.

Just as how energy-sector companies’ shares have dropped significantly, Keyera Corp. stock has dropped almost $14 since the pre-pandemic high. The share currently trades at $22.71. So, you can expect a natural growth in share value as well.

The company paid a sweet monthly dividend of $0.16 per share in 2020. Even if they don’t increase the dividend for 2021, an investment at the current market price will earn you a massive 8.45% per annum.

Key Highlights

• Market capitalization of $5 billion
• Company financials look green at the moment with increased cash flows and liquidity
• Launched new operational projects and move into renewable energy
• Trading at a very low share price right now.

(4) BCE Inc. (BCE.TO)

BCE Inc. is a telecommunications and media giant in Canada providing wireless, wired, Internet, and television (TV) services throughout Canada to both residential and commercial clients. The popular telecommunications brand Bell is BCE’s brand name. Bell is future-proofing themselves with the rollout of the latest 5G services.

BCE Inc. has a strong dividend reputation with a continuous dividend payout since its listing on the Toronto Stock Exchange (TSX) in 1983. The company also had increased dividends continuously for over a decade.

The share price of the company is down after the pandemic by about $9. Currently, the share trades at $54.98. Hence, you can expect a natural appreciation of share value as well.

For 2020, BCE Inc. paid out a quarterly dividend of $0.8325 per share, and most likely will continue to pay or increase this. At this rate, you can expect a staggering 6.06% return per annum.

Key Highlights

• Market capitalization of $49.7 billion
• The media segment of the company operates over 30 conventional TV stations, 29 specialty stations, and 4 paid stations, three streaming services, websites, and 109 licensed radio stations
• Has massive future growth potential.

(5) Capital Power Corporation (CPX.TO)

Capital Power Corporation is one of Canada’s leading players who develop, acquire, own, and operate power generation facilities. The company has a wide portfolio of power generation sources including natural gas, landfill gas, coal, wind, solid fuels, and solar. The company boasts a massive 6,500 MW power generation with its facilities.

Capital Power Corporation stock prices were heavily hit due to the pandemic but have almost bounced back to their pre-pandemic highs. The share price peaked at $38 in February and dropped to $22, and now trades at $34.99 per share.

The company also continued to pay a lucrative quarterly dividend of $0.48 in 2020 and increased it to $0.5125 for 2021. At this rate, your investment will earn a strong 5.85% per annum. The company also increased its dividend pay for seven years in a row at an average annual growth rate of 7%.

Key Highlights

• Market capitalization of $3.7 billion
• Heavy investments in renewable energy and low-carbon emission power generation in future
• Wide range of product portfolio and investment opportunities

These are some of our top picks when it comes to dividend investing in Canada for the upcoming 2021. Onboarding these shares at the lowest possible prices will ensure you high returns for the upcoming year, as well as many years ahead. That’s right, you can hold on to these dividends in the long run as well.

Disclaimer: I am not a licensed investment Advisor or Tax professional; therefore all content posted on this blog represents my personal views and opinions and should never be considered as professional advice.  This blog should be viewed for entertainment or educational purposes only; not a recommendation to buy/sell certain stocks.  Please do your own research before buying/selling stocks.