The Smartest Dividend Stocks to Buy With $500 Right Now #CanadaFinance

Written by Demetris Afxentiou at The Motley Fool Canada

Did you know that you can buy some of the smartest dividend stocks on the market with just $500? You won’t be able to retire from those investments just yet, but picking the right stocks today will provide you with an ample nest egg in the future.

Here’s a rundown of what those smartest dividend stocks to buy now are and why they belong in your portfolio.

Let’s start with Enbridge (TSX:ENB). The energy infrastructure behemoth operates the largest and most complex pipeline network on the planet. It’s also responsible for hauling one-third of all North American-produced crude and one-fifth of the natural gas needs of the U.S. market.

In other words, Enbridge generates a reliable revenue stream that boasts one of the best defensive moats on the market.

If that’s not enough, Enbridge also boasts a growing renewable energy portfolio and operates the largest natural gas utility in North America.

Perhaps best of all, Enbridge pays out a juicy quarterly dividend that carries a yield of 6%. The company has also provided annual upticks to that dividend for 30 consecutive years without fail. That fact alone makes Enbridge one of the smartest dividend stocks on the market.

A $500 investment in Enbridge today will provide a good start to any long-term portfolio thanks to reinvested dividends.

Canada’s big banks are stellar long-term investments that boast growing dividends, solid results, and plenty of growth potential. One big bank stock to consider buying right now is TD Bank (TSX:TD).

TD is the second-largest of Canada’s big banks. The bank also enjoys a very strong presence in the U.S. market, where its impressive network stretches across the East Coast from Maine to Florida.

TD’s stock price has taken a dip over the past year, reflected in a 10% dip over the trailing 12-month period. That dip is attributed to TD’s issues in the U.S. market, where U.S. regulators found that the bank didn’t do enough to prevent money laundering.

As a result, TD was hit with an asset cap in the U.S. and a hefty $3 billion fine.

But then why is TD considered one of the smartest dividend stocks to buy? That’s because, despite those short-term issues, TD is a great long-term option to consider. If anything, the current slump makes it a great time to buy the stock at a 10% discount.

Adding to that appeal is the fact that TD offers investors a healthy quarterly dividend, which it has been paying out for over a century without fail.

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