There's no shortage of great stocks to buy on the market. Among those, utility stocks can offer defensive appeal in times of volatility while catering to growth and income-seeking investors, too. Here's a look at some of the top Canadian utility stocks to buy this month.
Fortis
It would be nearly impossible to mention a list of the top Canadian utility stocks to buy without mentioning Fortis (TSX:FTS). Fortis is one of the largest utilities in North America, with a growing portfolio of assets across Canada, the U.S., and the Caribbean.
Fortis's immense size is only part of the reason why this behemoth should be in your portfolio this month.
Another reason to buy Fortis is its healthy quarterly dividend, which, coincidentally, is going ex-dividend later this month. As of the time of writing, Fortis offers a juicy 4.02% yield to investors.
This means that a $40,000 investment in Fortis will generate an annual income of over $1,600.
Even better, Fortis has provided investors with healthy bumps to that dividend for over 50 consecutive years, making it one of only two Dividend Kings on the market.
Canadian Utilities
Canadian Utilities (TSX:CU) happens to be that other Dividend King. The utility has amassed an incredible 52 years of consecutive annual increases. This means those who invested in Canadian Utilities back in the early 70s have been getting a healthy annual bump since then.
While I let you soak in that insane long-term compounding potential, note that Canadian Utilities goes ex-dividend this week.
As of the time of writing, Canadian Utilities offers investors a quarterly payout that carries a yield of 5.08%. This makes it not only one of the top Canadian utility stocks to own in November but also one of the best dividends on the market.
Brookfield Infrastructure
Brookfield Infrastructure Corporation (TSX:BIPC) is no stranger to long-time investors, with the company owning a widely diversified portfolio of not just utilities but countless other infrastructure assets. This includes toll roads, ports, midstream assets from the energy sector, cell towers, data transmission assets and more.
The key point here is that all those assets generate a recurring and stable revenue stream that is backed by long-term, often regulated contracts. This makes revenue a predictable stream and provides the company with a very defensive, well-diversified portfolio.
More importantly, that reliable business model has allowed the company to support healthy dividend growth. Brookfield continues to target 5-9% annual dividend growth, and at the time of writing, Brookfield has paid out a healthy 3.82% yield.
That fact alone makes Brookfield a buy-and-forget option and one of the top Canadian utility stocks on the market.
Buying top Canadian utility stocks
No stock, even the most defensive utility, is without some risk. Fortunately, the top Canadian utility stocks mentioned above are well-diversified and offer investors a stable (if not growing) option for long-term portfolios.
In my opinion, one or all of the above stocks should be part of any well-diversified portfolio.
Buy them, hold them, and watch them (and your income) grow.
