Written by Aditya Raghunath at The Motley Fool Canada
Before investing in dividend stocks, it’s essential to analyze whether the company can generate cash flows across market cycles and maintain these payouts, even amid economic downturns. This means investors should avoid chasing high dividend yields and instead look at a company’s payout ratio, free cash flow growth, and balance sheet debt. In addition to a yield, the best dividend stocks also generate returns via capital gains.
Here are two quality dividend stocks Canadian investors can buy right now for reliable income.
Canadian Natural Resources stock
While Canadian Natural Resources (TSX:CNQ) is part of the cyclical energy sector, it has raised its dividend for 24 consecutive years, showcasing the resiliency of its cash flows. Moreover, these payouts have risen by more than 20% annually, which is exceptional.
Valued at $113 billion by market cap,…
