hey guys it's Adrian here the Canadian and the t-shirt and today I'll be breaking down
the best Canadian dividend stocks for drips these stocks pay a high dividend and they're very easy
to qualify for a drip a dividend reinvestment plan a drip allows you to automatically reinvest
your dividends to earn extra shares for free every quarter or every month letting your stocks grow on
autopilot I've never made a video quite like this I love dividend stocks and I always mention the
benefits of drips for that long-term exponential growth but in this video I'm only talking about
stocks that have easy drip thresholds in fact you'll only need twenty five hundred dollars
or less for each of these stocks but let's be clear you should never invest in a stock just
because it's easy to get a drip the same way you shouldn't buy a stock just for its high dividend
they have to be sustainable these are all Quality Companies that I've been investing in for years
because they have a lot long-term future I'm not buying them just for the drip I'm holding on to
them for life to get reliable passive income and capital appreciation the drip is just a bonus I've
already made a whole video illustrating the power of drips with real life examples and how to set it
up so check that out but as a quick recap a drip is when you automatically reinvest your dividends
to buy new shares rather than receiving cash so to qualify for a drip you have to own enough shares
so that the dividend you receive is larger than the current share price the stocks on this list
pay a high dividend and they have a relatively cheap share price that's why it's easy to unlock
a drip compare this to an expensive stock like TD don't get me wrong I love TD it's one of my
favorite stocks of all time but it costs almost a hundred dollars per share so to get a drip to buy
that extra share you'll need about ten thousand dollars invested which is not easy that's the
point of this video for all all of these stocks you'll only need twenty five hundred dollars or
less to lock in that drip and enjoy that automatic growth so let's jump in starting with one of my
favorite dividend stocks Manulife Financial ticker symbol mfc.to I've already talked about Manulife
several times on this channel but really quick Manulife is among the 20 largest companies in
Canada and it's the largest insurance company here but it's so much more than just Insurance
like the big Banks it's one of the oldest and most established financial institutions it's been
here for over a hundred and thirty years so it's seen it all world wars recessions depressions and
they're still here that's because their services and products are always in demand in terms of
insurance they offer everything health insurance life insurance travel mortgage insurance and more
but they also offer bank accounts mortgages credit cards gics loans and investing through mutual
funds they're also Diversified geographically with over 30 million customers world worldwide
Manulife has a strong presence in the US but they are even more successful in the Asian market with
the rising middle class in Asia wealth management and insurance products are in huge demand in fact
Manulife now makes more money in Asia than they do in Canada and they'll continue to expand because
of these consistent profits they've always been able to pay a great dividend right now
their dividend yield is 5.1 percent paid out quarterly not only is this a high dividend
but it's sustainable because of its extremely low payout ratio of 35 percent which is amazing that
means only 35 percent of its profits go out to investors through dividends leaving it with 65
percent of its net income to reinvest in itself and grow as a company because of this super low
payout ratio manulife's dividend is very secure and we can expect a dividend raise later this year
so why am I putting Manulife on this list because it's very easy to lock in a drip you'll only need
about twenty one hundred dollars to qualify let's go through the math with a dividend yield
of 5.1 percent our 2100 investment would give us a hundred and seven dollars and 10 cents per year in
dividends or 26.77 per quarter Manulife currently has a share price of 26.20 so every three months
our dividend will allow us to purchase an extra share of Manulife for free and then we received
the remaining 57 cents as cash looking at my Excel dividend tracker you can see that every quarter
I'm earning two and sometimes three shares from drips in my tfsa account and another two shares
in my margin account and it didn't take a lot of money to get there that's because I invested
heavily in Manulife at the low point during the massive market crash in March 2020 but Manulife
was able to fully recover and I was rewarded with great capital gains since 2022 we've seen some
turbulence with the market downturn but I've been investing throughout and my drips have been buying
more shares on autopilot earning me reliable and increasing passive income along the way if
you're not sure how to actually buy these stocks click the pop-up to watch my quest for tutorial
where I give a step-by-step walkthrough of how to buy stocks using Quest trade my favorite online
broker you can also use wealth simple trade but they do not allow drips it's one of the many
limitations of wealthsimple but with Quest trade drips are super easy to set up for any stock or
ETF so if you'd like to get started with questrade click my referral Link in the box below and you'll
get fifty dollars in commission free trade rebates for the first 30 days when you sign up that
basically means that your first 10 Stock trades will be commission free that saves you fifty
dollars plus I'll get a small referral bonus as well next up let's look at the real estate sector
with one of the Lesser known REITs in Canada called Plaza retail ticker symbol plz.un.to a
Reit is a real estate investment trust this is a collection of hundreds of real estate properties
packaged together as a stock and the rent from all of these properties goes back to to investors as
dividends or distributions they're basically a way to tap into the real estate market through
the stock market so you don't need a hundred grand for a down payment Plaza is a retail rate
so their properties are shopping centers and the individual stores are their tenants who pay them
rent I've talked about the biggest retail rates in past videos like ryokan h r and smart centers but
those are all large cap companies worth billions of dollars Plaza is significantly smaller with a
market cap of about 500 million so it's definitely less established and potentially on the riskier
side but there is room for growth like smart centers plazarite avoids indoor shopping malls
instead focusing on open-air shopping plazas and multi-tenant strips which make up about
96 of their portfolio and the majority of their tenants are essential businesses like groceries
and pharmacies this is good news if we ever have another lockdown these open air centers and
essential stores will remain open and can continue to pay rent but unlike the big players Plaza
avoids the expensive markets like Toronto and Montreal instead focusing on value properties and
redevelopments to build equity and attract quality tenants and that's the key by getting quality
tenants Plaza rate has a 97 occupancy rate and 91 of their tenants are Canadian retailers so they
rent out to Consumer Staples like Shoppers Drug Mart Loblaws Dollarama sobies Tim Hortons winners
good life Canadian Tire and some American stores like KFC Staples and Best Buy like most retail
rates Plaza pays out a massive dividend with a yield of 6.15 percent and this dividend is paid
monthly as I always say a high yield is not enough it needs to be sustainable when it comes to rates
we don't use the payout ratio from net income since that doesn't account for the depreciation
of its properties for REITs we look at the funds from operations or ffo instead as I talk about in
this video the ffo is much more representative of the true cash flow of the business for Plaza
reach they have an ffo payout ratio of 69 which is really good for a retail reach that means that
only 69 of its income from regular business activities goes out to investors as dividends
or distributions leaving the rest to buy more properties and expand many REITs have an ffo ratio
above 90 so even though this dividend is quite High it is sustainable and that's what matters
my favorite thing about Plaza Reit is its drip it only takes nine hundred dollars to lock in a drip
and this is a monthly drip that's because of its high dividend but more importantly because of its
low share price less than five dollars out of all the stocks I own Plaza rate is the easiest Drip
by far looking at my dividend tracker you can see that I'm earning five or six shares every month
for free that's 72 extra shares a year totally on autopilot and I love it so with 900 invested and
a yield of 6.15 percent will earn 55.35 a year in dividends or 461 a month the share price is
only 457 right now so that's enough to buy an extra share every single month looking at the
stock price over the past three years you can see the massive crash in March 2020 but it was able
to recover in a matter of months now with Rising interest rates in April we've seen the overall
Market take a drop especially the real estate market but as long as rates like Plaza maintain
those quality tenants to pay out consistent rent they will recover and continue to pay out that
great passive income along the way I've shown you a quick peek of my tvsa portfolio but if you want
to see my full portfolio and to help support my channel hit that join button down below to gain
access to my exclusive videos like my tfsa and rrsp portfolio reveal and to see what's bucks I'm
buying every month this membership program will cost five dollars a month or about one dollar
a week it definitely helps keep me running but don't feel pressured to join watching my videos
and leaving a comment and a thumbs up is more than enough but if you do want to help out and
see more of my content I do appreciate it and at number three we have Telus ticker symbol t.to make
sure you include the dot to if you only search for tea you'll probably get the American company at T
Telus is one of the three Telecom Giants in Canada and so their products and services are always in
demand even in a recession people and businesses need their phones and internet so they are always
profitable we've seen this over the past decade Telus has grown the revenue every single year
even through the pandemic that reliable income allows them to pay out a generous dividend of
4.95 paid out every quarter they actually increase their dividend twice last year back in June and
recently in December for a total raise of 7.3 percent which is great to see in fact they've
increased their dividend every single year for 18 years straight and to keep it going Telus has
committed to increasing their dividend twice every year until 2025. this aggressive dividend growth
is great for passive income but it does come with a larger payout ratio of 90 this means that most
of its earnings are going out to investors this isn't the best news but it's actually in line
with the rest of the Telecom industry and it's significantly lower than their biggest competitor
bell with a payout ratio of a hundred and twenty percent the telecom companies are investing tons
of money to expand their infrastructure and 5G capabilities and with Rising interest rates this
does cost more but it should pay off with future earnings again with these high interest rates we
are seeing a dip in the price of Telus but it does make it easier to qualify for a drip right now you
only need twenty three hundred dollars to lock in drip with Talus with 2300 invested and a yield
of 4.95 percent will earn a hundred and thirteen dollars a year in dividends or 28.46 per quarter
the share price is only 28.35 so that's enough for a free share every three months looking at
my Telus Holdings I'm earning one share from drips every quarter in my tfsa account and two
shares in my margin account looking at the stock price over the past year you'll see a steady drop
since April 2022 when the interest rates started shooting up but if we zoom out to five years we
get a different picture we can see a clear upward Trend fueled by the consistent and growing revenue
of the company we saw a big drop in the market crash of March 2020 but it was able to recover
quickly and once interest rates steady and start to come back down I expect another quick recovery
in the meantime I'll be collecting that passive income and those drips every three months to
actually buy these stocks and to lock in those drips click my for a link down below to sign up
with questrade my favorite online broker and use my code Canadian t-shirt to get that 50 sign up
bonus and you'll help support my channel I'll also include my link below for wealth simple
trade which is a great platform for Canadians but remember they don't support drips so there
you have it those are my three favorite dividend stocks for easy drips thanks for watching guys and
be sure to like comment and subscribe if you found this video helpful every thumbs up and comment
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you guys on the next episode of the Canadian in a t-shirt bye guys