2 TSX Dividend Stocks With Lucrative Yields in November 2023

Increasing yield
Image source: Getty Images

Written by Demetris Afxentiou at The Motley Fool Canada

When market volatility hits, investors often focus on short-term price losses. What investors often fail to realize is the bigger opportunity — specifically, they fail to pick up stellar dividend stocks with lucrative yields at hefty discounts.

Here’s a look at some of those great dividend stocks that now boast lucrative yields for your portfolio.

Power up your portfolio with this energy infrastructure behemoth

Most investors are familiar in some part with Enbridge (TSX:ENB), and there’s a good reason for that. Enbridge operates the largest and most complex pipeline system on the planet. The company also operates one of the largest natural gas utilities in North America.

What many investors don’t realize is that despite its size, Enbridge continues to invest in growth. This includes a growing renewable energy segment while also paying out one of the most lucrative yields on the market.

As of the time of writing, Enbridge pays out a quarterly dividend with an insane 7.84% yield. This means that investors who drop $30,000 as part of a well-diversified portfolio into Enbridge can expect a juicy $2,300 income.

That’s not all. Enbridge has also provided investors with an annual uptick to that dividend annually for three decades without fail. Enbridge plans to continue that practice through the next few years, too. That fact alone makes Enbridge one of the most lucrative yields to consider right now.

Oh, and investors considering Enbridge should note that the stock trades at a significant discount right now. Specifically, the stock is down 12% year to date.

Banking on success and growth and income.

I would be remiss if I didn’t mention at least one of Canada’s big banks as investments with lucrative yields. The fallout from rising interest rates has put pressure on the big banks over the past year. As a result these often mentioned great stable investments now trade at significant discounts.

One such example is Canadian Imperial Bank of Commerce (TSX:CM). CIBC offers investors a tasty 6.49% yield, handily making it one of the better-paying options on the market. And thanks to the interest rate fueled pullback, the bank still trades down 14% over the trailing 12-month period.

This makes the bank a win-win for long-term investors who want to buy at a discount and enjoy that lucrative yield. And like Enbridge, CIBC has an established precedent of providing annual bumps to that dividend.

The other key point that prospective investors want to keep in mind is time. CIBC, like most stocks in this volatile market, should be seen as a long-term investment. The big banks in particular have historically shown to be resilient in recovering from market dips.

It’s not hard to find lucrative yields in this market

Market volatility has swelled a lot of dividend stocks this year. And while the market will recover, the importance of diversifying cannot be understated.

Fortunately, both CIBC and Enbridge offer considerably defensive appeal as well as ample growth potential. In my opinion, one or both stocks should be core holdings in any larger, well-diversified portfolio.

The post 2 TSX Dividend Stocks With Lucrative Yields in November 2023 appeared first on The Motley Fool Canada.

Should You Invest $1,000 In CIBC?

Before you consider CIBC, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2023... and CIBC wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 24 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 11/14/23

More reading

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

2023