Market Crash: 2 Top TSX Dividend Stocks to Buy

Although many stocks have extremely attractive valuations at these levels, these two dividend-growth companies are the best stocks to buy.

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As many investors know, a stock market crash is one of the best opportunities for long-term investors to buy stocks. A lot of high-quality stocks have major discounts that you may not see again for years.

Because so many companies are now this cheap, it’s paramount you choose only the highest-quality stocks that will outperform the market. And when the market finally recovers, many stocks will provide investors will solid returns.

But the best returns will only come from a select few top companies, businesses such as these two stocks. The types of businesses you’ll want to focus on are strong and well-run companies that can immediately be counted on to protect your wealth and grow your money.

One of the top industries where you’ll find stocks to buy in this environment is in infrastructure.

Infrastructure stock to buy

Infrastructure is always a great investment, because many of the assets are of high importance to the normal functioning of the global economy.

That’s why Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) should be at the top of every investors’ buy list.

The company has assets geographically diversified all over the world. In addition, the sources of its cash flow are also diversified, coming from four main segments.

It derives its cash flow from high-quality assets such as utilities businesses, railroads, toll roads, and energy operations.

The high-quality assets it owns and strong management team sourcing new deals combine to make Brookfield Infrastructure one of the best long-term stocks on the TSX in addition to a great business to own in a recession.

The value it’s presenting is second to none, especially considering what well-run companies all Brookfield businesses are.

As of Monday’s close, the stock was trading for roughly $39. That’s nearly 50% off its 52-week high. And at that low of a price, its dividend yields approximately 6.1% — an incredible deal for such a great business.

The company is extremely strong financially and paid out just 75% of its adjusted funds from operations in 2019. This gives it a major margin of safety and checks all the boxes of a long-term stock you’ll want to buy.

Another Brookfield business you could consider that’s also in a great long-term industry is Brookfield Renewable Partners (TSX:BEP.UN)(NYSE:BEP).

Green energy stocks are a buy

Brookfield Renewable is one of the top renewable energy companies on the TSX and one of the best stocks you can buy today. It’s also one of the biggest with a market cap of $8 billion and generation capacity of more than 7,400 megawatts.

Green energy is a long-term growth industry that will be continuously growing as the world moves to fight climate change. Because of the popularity of these stocks for their growth potential, they have traditionally traded at a premium.

That means the discounts the stocks are trading at these days are creating an opportunity for investors that may not ever come around again.

Brookfield Renewable gets roughly 90% of its power from hydro and wind assets. For 2020, roughly 95% of its production is contracted an extremely attractive amount. Furthermore, its power-purchase agreements have a weighted average length of 13 years. This gives Brookfield Renewable considerable stability in its cash flow.

As of Monday’s close, the stock was trading at roughly $44. At just $44, it’s down roughly 44% from its 52-week high — a major discount. In addition, its dividend is currently yielding about 5.6%. And that’s with a sustainable payout ratio, which was just 90% in 2019.

Brookfield Renewable is one of the top stocks you can buy for its assets right now. However, its long-term potential is extremely attractive as well.

In addition to the renewable industry being a natural growth industry, Brookfield also has considerable capacity that is under construction, giving it growth potential in the short run as well as the long run.

Bottom line

Brookfield companies are known to be some of the best long-term stocks that investors can own. Both these companies are well managed, have great assets, pay distributions, and, thanks to the current market environment, are extremely undervalued. That is why they are two of the top TSX stocks to buy today.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Daniel Da Costa 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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