Two of the top TSX dividend stocks that currently yield more than 8% are Pembina Pipeline Corp (TSX:PPL)(NYSE:PBA) and AltaGas Ltd (TSX:ALA).
Energy dividend stock
Pembina Pipeline is an energy infrastructure company that is one of the top TSX dividend stocks you can buy today.
The stock was sold off rapidly to start the month out of nothing but pure fear. Investors who acted quickly and were confident in the company they were buying have already been rewarded.
The stock gained back a lot of its losses during this past week’s rally. However as of midday Friday, the stock is down more than 10% again, trading a little over $25.
At these prices its stable and reliable dividend yields just under 10%. That dividend is expected to payout just 60% of its 2020 adjusted funds from operations (AFFO), so the dividend should remain safe.
Furthermore, less than a fifth of Pembina’s business is exposed to commodity prices, so the company should easily be able to weather this storm.
The stock currently trades at just 11 times its trailing earnings, which is extremely cheap for such a high-quality company like Pembina.
Analysts tend to agree. Looking only at those who have reiterated their target prices in the last two weeks, Pembina still has an average target price of $41.
The combination of capital gains potential and a massive dividend yield combine to make Pembina one of the most attractive dividend stocks on the TSX today.
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