Home » Investing » Get Crazy Rich in 2021 With These 2 Outstanding Dividend Stocks
A market pullback and rebound is underway in these two industries that both offer high dividend yields for Canadian investors.
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Amy Legate-Wolfe
Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances.
Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities.
Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. Amy’s work can be found regularly on the Financial Post and MoneyWise Canada.
When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog Finley, and travel.
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Latest posts by Amy Legate-Wolfe (see all)
- The Smartest Dividend Stocks to Buy With $400 Right Now - March 6, 2024
- Royal Bank of Canada Stock: Buy, Sell, or Hold? - March 6, 2024
- Down 25%, This Magnificent Dividend Stock Is a Screaming Buy - March 6, 2024
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| More on: BEPENBBEP.UNENB
Rebounds and pullbacks seem to be the trend of today. After the woes of COVID-19, the market started 2021 on a high note. Tech stocks continued to climb, and there was a rebound already underway for the TSX in general. However, there are still undervalued stocks that provide not just returns but dividends for 2021. Some of those dividends could soar in growth with a strong recovery after the pandemic. So, investors looking for stocks in their 2021 portfolio will want to have as much cash on hand to invest as they can, and fast.
Today, we’ll look at two stocks that not only will achieve strong revenue during a recovery but also offer dividends to boot. These dividends can be used to reinvest in each stock at no cost to you. Let’s get started.
Enbridge stock
Enbridge (TSX:ENB)(NYSE:ENB) is the perfect recovery play for those wanting in on the energy rebound. The company is a high-yield Dividend Aristocrat with a market capitalization currently around $92 billion. The company supports itself through long-term contracts running decades, which is why dividend investors will be happy to know their yield is safe.
But beyond these contracts, the company is seeking to grow its pipelines. In fact, in January, the company received approval to build its Michigan-based Great Lakes Tunnel Project. So, while the company may have had lower revenue last year from the pandemic, that leaves now as a stellar opportunity to long-term investors. In fact, even during this rough year, profitability still improved.
If analysts are correct, shares in this stock could jump back to all-time highs this year. That would mean a potential upside of 33% as of writing! On top of that, you’d lock in a 7.37% dividend yield at its current share price.
Brookfield Renewable
You don’t have to stick to energy stocks to see a rebound. The pullback in tech and green energy stocks leaves the door open for opportunity. By simply finding those stocks that provide a necessity in the market, you can enjoy strong growth this year and beyond.
Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP) is the perfect play in this case. The company saw shares climb with the green energy boom at the beginning of the year, but shares have since fallen with the market. However, this leaves the perfect opportunity for green energy investors. Brookfield has 19,000 megawatts of renewable energy assets around the world. This continues to grow through acquisitions, and investors can look forward to even more of this in the future. That especially comes with government money likely coming the company’s way.
Long-term investors will see massive returns, but even in 2021, these shares are likely to rebound back to all-time highs. That would mean a potential upside of 25% as of writing, after climbing 661% in the last decade. Meanwhile, you’ll also lock in the 3.17% dividend yield from this stock.
Bottom line
After last year’s weakness, those seeking a strong rebound can look forward to those returns from the energy sector in general. Enbridge stock and Brookfield stock both offer different ways to take advantage of today’s market. The rebound in oil and gas coupled with the pullback in energy allows you to see massive returns while also collecting stellar dividends. That makes these two the perfect stocks to buy in 2021.
