Young Investors: 3 Best Dividend Stocks to Buy in March 2023

Younger investors often overlook the need to invest in a selection of the best dividend stocks early on. Over time, those income-producing stocks can produce a very generous income stream.

Are you curious as to where you can begin? Here’s a selection of three of the best dividend stocks to buy this month.

Income generation flows easy

Some of the best dividend stocks to buy are long-term gems that generate a recurring and stable revenue stream and offer some defensive appeal.

The first dividend-paying gem to consider is Enbridge (TSX:ENB). Enbridge is the largest energy infrastructure company in Canada. The company also boasts the largest and most complex pipeline network on the planet.

And it’s that pipeline network that provides Enbridge with that defensive revenue stream. Enbridge hauls massive amounts of crude and natural gas through its pipeline network each day. In terms of volume, Enbridge transports one-third of North American-produced crude and one-fifth of the natural gas needs of the U.S. market.

If that’s not enough, Enbridge does not charge customers for use of its network based on the commodity being hauled. In other words, irrespective of which way oil prices move, Enbridge generates a recurring revenue stream.

Impressively, that’s not all that Enbridge does. The company also operates a growing renewable energy business. Enbridge has invested over $8 billion into the segment over the past two decades. Today, the segment comprises dozens of wind, solar, and hydro facilities located across North America and Europe.

Turning to dividends, Enbridge provides investors with a quarterly payout. The yield on that dividend currently works out to 6.76%, making it one of the best dividend stocks on the market.

To illustrate that juicy income, investors that purchase $40,000 in Enbridge can look to generate an income of just over $2,704. Oh, and let’s not forget that Enbridge has provided an annual uptick to that dividend for over 25 consecutive years.

This is an easy addition to the best dividend stocks to buy

Another one of the best dividend stocks for investors to consider right now is BCE (TSX:BCE). Apart from operating one of the largest telecoms in Canada, BCE also boasts a massive media segment.

But what makes BCE one of the income-producing stocks your portfolio needs? That comes down to several key points.

First, BCE is a defensive gem that continues to see strong growth. Telecoms are some of the most defensive investments on the market. That defensive appeal has grown considerably in the last few years as some have transitioned into full-time remote positions.

BCE’s wireless segment also warrants mention. Apart from boasting the fastest 5G speeds, the company is also rolling out its 5G+ service. The long-term potential of that service is a key reason why BCE continues to see strong activations with each quarter. In fact, in the most recent quarter, the telecom saw wireless subscriber activations surge 11.4% over the same period last year.

Finally, let’s talk dividends. BCE has been paying out a juicy quarterly dividend for over a century without fail. Today, that dividend works out to a yield of 6.44%,

Bank on this stock for a healthy income

Canada’s big banks are almost always a great long-term investment; in case you’re wondering, the keyword here is not almost but rather long term.

But which bank should you consider? Let’s take a moment to mention Bank of Montreal (TSX:BMO).

BMO is the oldest of the big banks, with nearly two centuries of dividend history to fall back on. Today, that dividend is a juicy 4.89%.

A bank may not come to mind as the best investment right now, but that’s where the long-term part comes into play. History tells us that Canadian banks have weathered financial crises better than their U.S. peers. And each time, they’ve recovered stronger.

Until that recovery kicks in, shares of BMO are trading down 20% over the trailing 12-month period.

Given the fact that BMO closed on a massive acquisition last month, the growth opportunity over the long term for BMO is huge.

In other words, you may want to consider buying one or all of these best dividend stocks this month.

The post Young Investors: 3 Best Dividend Stocks to Buy in March 2023 appeared first on The Motley Fool Canada.

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More reading

• For a Shot at $6,790/Year in Passive Income, Buy 1,908 Shares of This Stock
• Want to Retire Early? Speed Things Up with TSX Dividend Stocks
• Why BCE Stock May Be the Only Stock You Need in 2023
• 3 Cheap Canadian Stocks With Yields of 6% or More
• 2 Top Energy Stocks to Buy Right Now

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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