Yahoo Finance Are You Close to Retirement? Consider These 2 Dividend Stocks
Canadian investors have reason to be uneasy with uncertainty surrounding the ongoing housing drama, rising interest rates, and the TSX slump. Those on the verge of retirement are looking for dividends and reliable income from their investments.
Let?s take a look at Enbridge Inc. (TSX:ENB)(NYSE:ENB) and Fortis Inc. (TSX:FTS)(NYSE:FTS).
Enbridge
Enbridge is an energy-delivery company based in Calgary, Alberta. The company owns and operates the largest natural gas network in Canada.
Shares of Enbridge closed at $51.56 on Tuesday, down 0.04%. The company has suffered with oil?s recent plunge; the stock has fallen 8% in 2017. Nearing its 52-week low of $49.61, it is worth noting that Enbridge has expansive projects on the way, and a strong Canadian dollar should boost earnings in the latter two quarters of 2017.
In May, Enbridge announced a quarterly dividend of $0.61 per share to be paid June 1. It boasts a yield of 4.73%, which should be extremely attractive for any income investor in pursuit of a high dividend.
Fortis
Fortis is a St. John?s, Newfoundland and Labrador-based electric utility holding company that operates in Canada, the United States, and parts of Central America and the Caribbean.
The company closed at $44.15 on Tuesday, down 0.14%. It has had a positive 2017 so far, gaining 6%. In its quarterly earnings report in May, Fortis announced $0.53 earnings per share in Q1, missing estimates of $0.71 by $0.18. Fortis had revenue of $2.27 billion during the quarter compared to estimates of $2.5 billion. However, revenue was up 711% from Q1 2016.
Fortis is set to hold a teleconference on July 28, 2017, to discuss its second-quarter results.
The stock boasts a $0.40-per-share dividend with a 3.63% yield. Its $2.03 earnings per share is expected by analysts to rise to $2.23 by the end of this year. Fortis is another incredibly stable business servicing over three million customers in North America.
Which is the better option?
The share price for Enbridge will continue to be tested by volatility in oil prices. This factor may offset its slightly more attractive dividend for investors.
Fortis has just tapered off from all-time highs in late June, and another earnings report that misses expectations could push the share price down further.
Both of these companies have wide moats and ambitious projects in their pipelines. As we head into the second half of 2017, central banks have made it clear that they are committed to tightening. This would seem to confirm the end of a long credit cycle.
Investors on the verge of retirement should then be looking towards income and dividend-yielding stocks, like the ones above, to bolster their portfolios as the torrid pace of gains experienced after the Financial Crisis will be harder to come by.
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More reading
RRSP Investors: 2 Canadian Dividend Stocks to Buy Now and Hold for Decades
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Income Investors: A Canadian Dividend Deal to Consider Today
Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.
1 Massive Dividend Stock to Buy Today (7.8% Yield!) - The Dividend Giveaway
The Motley Fool Canada's top dividend expert and lead adviser of Dividend Investor Canada, Bryan White, recently released a premium "buy report" on a dividend giant he thinks everyone should own. Not only that - but he's created a must-have, exclusive report that outlines all the alarming traits of dividend stocks that are about to blow up - and how you can avoid them.
For this limited time only, we're not only taking 57% off Dividend Investor Canada, but we're offering you special access to two brand-new reports, free of charge upon signing up. They will outline everything you need to know so you steer clear of dividend burn-outs AND take advantage of the dividend giants in the Canadian market.
While this offer is still available, you can find out how to get a copy of these brand-new reports by simply clicking here.
Fool contributor Ambrose O'Callaghan has no position in any stocks mentioned. The Motley Fool owns shares of Enbridge. Enbridge is a recommendation of Stock Advisor Canada.
