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Regardless of whether you’re an amateur investor or someone with ample experience, investing in dividend stocks can be an outstanding way to increase long-term portfolio returns. Dividend-paying companies tend to produce consistent cash flows, providing portfolio stability in times of uncertainty. Right now, that’s a great thing.

Here are two great dividend stocks investors may want to consider right now.

Top dividend stocks: Toronto-Dominion Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) remains one of my top picks among Canadian dividend stocks. This Big Six bank boasts a market capitalization of $180 billion, and a dividend yield of 3.6% at the time of writing.

TD is one of the largest banks in North America, with a solid presence both domestically and south of the border. The company’s retail banking network, particularly on the east coast of the U.S., provides TD with intriguing upside to surging retail banking demand.

Additionally, this top lender features a wealth management and brokerage business that has boomed. These business segments may take a hit as a result of higher interest rates. However, increasing net interest margins on the whole should boost TD’s overall lending portfolio. As the key component to TD’s profitability, net interest margins are what many investors watch.

Accordingly, on the whole, TD stock looks like a great pick for investors seeking defensive and sustainable income over time. As one of the top dividend stocks in this sector, and perhaps in Canada, TD is a great option for those with a long-term investing time horizon looking to put fresh capital to work.

Suncor

In the energy sector, one of the top dividend stocks I like right now is Suncor (TSX:SU)(NYSE:SU). This company is a diversified and integrated energy company, providing upstream, midstream, and downstream operations. Thus, the vertically integrated business model of Suncor makes this a great way to play the energy sector.

I suggested a while back that a commodities rebound was likely, coming out of the pandemic-driven economic turmoil two years ago. However, I also think this rally has legs. Looking forward through 2022 and beyond, Suncor’s exposure to the energy sector could provide investors with a stable source of income through what may be difficult times.

Through tightening cycles, history suggests energy stocks have been decent performers. I think this is likely to be the case here. Accordingly, those looking for value and dividend income may want to consider Suncor stock. Currently, Suncor yields 4.9% at the time of writing.



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