Best Income Stocks For November 2023

There comes a point during our quest towards retirement, or financial freedom, that we must focus on an income stream to pay for the bills.

That’s where dividend income stocks come into play. It’s the point in time where your retirement portfolio is now generating your income and paying the bills.

Why Dividend Income Stocks?

Investing for income iss a different strategy from growing a portfolio during the accumulation years with the best dividend stocks where you can take on some more risks. 

As such, finding the appropriate stock that gives you the best income with the best dividend stability is no small task. The stocks you want are:

• Safe and stable business models
• Provides 4% dividend yield
• Has a history of consistent dividend payments
• Has some dividend growth to keep up with inflation

The stable industries are the telecom stocks, the utility stocks, the bank stocks and the insurance stocks. They have the tollbooth business concepts which implies recurring revenue.

Best Dividend Income Stocks

The Dividend Snapshot Screener is setup to quickly narrow down on a short list. Filter by the income fit, the yield, the Chowder score and any other metrics you want.

Each of the holdings below will pay you more than 4% and grow their dividends at a faster rate than the inflation so you can keep up with inflation.

As a note, REITs are excluded from the filter. I am not a fan and there are safer options to generate income and have dividend growth keeping up with inflation.

The 3 filters I use from the best Canadian stock screener are:

• Dividend Yield over 4% – Good income and not at risk
• Chowder Score over 10% – Dividend growth beating inflation
• Minimum of 5 Annual Consecutive Dividend Increases – Consistency by management

From a dividend income perspective, the telecom stocks are good investment as they often provide the highest dividend income but not always with the best dividend growth.

Note that to screen stocks for income require unique dividend data. Not many screeners focus on dividend data. You should consider a screener such as Dividend Snaspshot Screeners.

1. Scotia Bank

Key Investment Data

2. First National Financial

First National Financial Corp is Canada’s largest non-bank mortgage lender. In the last thirty years of its business, the company has built a leading reputation in real estate financing with over $106 billion in Mortgages Under Administration and is the largest commercial mortgage lender in the country today.

More than 80% of the MUA is insured mortgages, followed by conventional style family residential mortgages (13%) and multi-unit residential and commercial mortgages (6%). It maintains diverse and flexible funding sources and is known for its prudent and conservative underwriting practices.

Size, large national presence and focus on mortgage financing are key differentiators for the company. The Canadian mortgage market is valued at over $1.1 trillion and given its leading reputation, First National is in a good position to benefit from this opportunity.

Key Investment Data

3. BCE

Bell Canada Enterprises is Canada’s largest telecommunications company. It provides an extensive range of products and solutions for its customers’ communication needs. The company owns Canada’s largest network of data centers, retail outlets, as well as Bell LTE, Canada’s national network.

BCE is a leading residential communications provider offering fiber-based Fibe TV and Fibe Internet, Connected Home services and home phones in seven provinces. It also provides national wireless services, and a wide range of business communications services including data hosting and cloud computing across the country.

Bell Canada caters to a diversified customer base which includes retail consumers, businesses and government customers. Moreover, its multimedia company, Bell Media is Canada's premier media company hosting the No.1 sports channel TSN.

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4. CIBC

CIBC or Canadian Imperial Bank of Commerce is a leading North American financial institution, formed as a result of the merger between the Canadian Bank of Commerce and the Imperial Bank of Canada in 1961. The bank caters to 11 million individual, small business, commercial, corporate and institutional clients in Canada, the U.S. and around the world.

The bank operates through its four strategic business units Canadian Personal and Small Business Banking (48% of latest net income), Canadian Commercial Banking and Wealth Management (24%), U.S. Commercial Banking and Wealth Management (13%), and Capital Markets (15%).

The bank caters to 11 million individual, small business, commercial, corporate and institutional clients in Canada, the U.S. and around the world. CIBC has a strong client focused culture and operational efficiencies which drive shareholder value and aid growth across different platforms.

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5. TC Energy

TC Energy is a leading North American energy infrastructure company. It supplies more than 25% of natural gas consumed daily across North America. The company has a strong portfolio of diversified assets, storage facilities and power generation plants and operates one of North America’s largest natural gas pipelines networks extending to more than 57,500 miles.

TC Energy operates three complementary energy infrastructure businesses across three major geographies in North America. By generation type, TC’s assets can be divided into nuclear, natural gas and wind. The USA, Canada and Mexico are its core geographies and the company has access to North America’s two most prolific natural gas supply basins.

With more than 65 years of service, TC Energy is known for delivering energy in a safe and sustainable manner. Ownership of low-risk regulated cost-of-service businesses and long-term contracted energy infrastructure assets differentiate TC Energy from its peers.

Key Investment Data