The best Canadian dividend-paying stocks to own right now

The Tax Free Savings Account (TFSA) is an extremely useful investment tool for Canadian investors. TFSA users can enjoy significant tax savings over the years, as the account type allows their capital gains, dividends, and other income from account assets to accumulate without incurring tax.

You can use your TFSA contribution room to hold a wide variety of assets. Reliable income-generating assets like dividend-paying stocks are great additions to TFSA portfolios. Today, I’m going to discuss a great Canadian dividend-paying stock that you could hold in your TFSA for non-standard and long-term returns.

Brookfield Infrastructures Partners

Brookfield Infrastructures Partners (TSX: BIP.UN) (NYSE: BIP) might be an ideal stock if you are looking for a company that has the qualities necessary for meaningful, reliable long-term growth while delivering dividends.

Brookfield Infrastructure Partners has a wide range of infrastructure assets in its portfolio that are diversified across several industries, including transportation, utilities, intermediary and data infrastructure assets. The company has low maintenance capital requirements. Its maintenance expenses have averaged less than 20% of its operating funds over the past five years. Last year, its maintenance capital expenditure was only 19.3%.

The assets of Brookfield Infrastructure will continue to be critical to many sectors of the economy. With 95% of its cash flow coming from regulated or contracted assets, it generates reliable cash flows. 65% of its cash flow carries no volume risk and approximately 75% is indexed to inflation. This means the company is generating significant cash flow to comfortably support its dividend payments.

Promising growth prospects

Brookfield Infrastructure Partners can hardly ever be short of growth opportunities. The company spans five continents and has many opportunities to generate high returns over the long term after adjusting for risks. The company also has significant mature assets to generate profit in the form of capital that it can use to make further investments.

The company started to privatize Inter-pipeline in the first quarter of fiscal 2021 – a company in which it had already established a one-fifth stake during the pandemic-fueled market crash last year.

Brookfield Infrastructure Partners has closed or secured three asset sales totaling over US $ 1.7 billion, generating 34% annual after-tax returns and quadrupling its return on investment. The company ended its final quarter with US $ 2.6 billion in liquid assets that it can use for other investments.

Stupid takeaways

The management of Brookfield Infrastructure Partners has always been successful in appealing to investors by achieving their goal of 12-15% total long-term return on investment. Investors may simply consider buying the stock at a reasonable valuation to take advantage of the 12% compound annual growth rate that seems virtually guaranteed due to its excellent track record.

The stock is trading at $ 65.31 per share at the time of writing, and it has a 12-month dividend yield of 3.87%. The company’s cash distribution grows by almost 5-9% per share each year, making it an excellent stock of dividends for wealth growth through capital gains and dividend income in your business. TFSA wallet.

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This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Foolish contributor Adam othman has no position in any of the stocks mentioned. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS and Brookfield Infrastructure Partners.

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