The Motley Fool

3 Top Dividend Stocks to Survive the COVID-19 Crisis

Image source: Getty Images

During hard times, dividends are your best friend. That’s because they give you regular passive income. With bonds offering very low yields, dividend stocks are very attractive.

When looking for dividend-paying companies, it’s better to pick large companies that have been paying dividends for several years and are solid financially.

Here are three dividend stocks that will provide you with a consistent income during the coronavirus recession and beyond.


Fortis (TSX:FTS)(NYSE:FTS) is a great long-term investment in the utility space as it’s very defensive.

The company generated adjusted net earnings of $315 million, or $0.68 per share, in the first quarter compared to $316 million, or $0.74 per share, a year earlier.

The COVID-19 pandemic has had a modest impact on Fortis’ operations. The company emphasized that because much of its revenue comes from regulated and residential sources, which are highly recurring as opposed to retail, the company’s business will do fine during the COVID-19 crisis.

Along with that income stability comes a dividend that is one of the safest in the business. Fortis has regularly increased its dividend over the past 40 years and should continue to grow it over the foreseeable future. The quarterly dividend amounts to $0.4775 per share and currently yields close to 4%.

COVID-19 hasn’t changed Fortis’ management long-term view so far. Its $18.8-billion, five-year capital plan to modernize infrastructure and move toward cleaner energy delivery will continue.


Nutrien (TSX:NTR)(NYSE:NTR) posted an adjusted net loss of US$0.12 per share and an adjusted EBITDA of US$508 million in its first quarter. However, this quarter is typically a weaker earnings period for the company. Nutrien expects a solid first half despite global economic uncertainty.

The COVID-19 pandemic has had a limited direct impact on Nutrien’s operations or on demand for crop inputs. The global economic downturn has created increased market volatility and uncertainty. However, crop prices have been less impacted than other commodities that are more fundamentally linked to economic growth.

Nutrien is still in an excellent financial situation with a solid balance sheet and free cash flow, a stable dividend, and abundant liquidity.

First-half 2020 adjusted net EPS should come at US$1.20 to US$1.40. Nutrien’s full-year 2020 adjusted net EPS and adjusted EBITDA guidance were lowered to US$1.50 to US$2.10 per share and US$3.5 billion to US$3.9 billion, respectively.

Nutrien pays a quarterly dividend of $0.45 per share, and its current dividend yield is 5%.

Choice Properties Real Estate Investment Trust

Choice Properties REIT (TSX:CHP.UN) owns, manages, and develops a portfolio of 756 properties totaling 68 million square feet of gross leasable area. Its portfolio is made up of 602 commercial buildings, 115 industrial buildings, 15 office complexes, 4 multi-family residential buildings, and 20 buildings under development.

Many high-quality grocery store and pharmacy-anchored properties are part of Choice Properties’ portfolio. Those necessity-based retailers have continued to operate throughout the COVID-19 lockdown.

Choice Properties has a strategic alliance with its main tenant, the food retail giant Loblaw. Its top tenants include Dollarama, which also continues to operate during the COVID-19 lockdown.

Choice Properties has a current dividend yield of approximately 6%. This safe REIT pays a dividend of $0.0617 every month, which is interesting if you need a reliable income.

The 10 Best Stocks to Buy This Month

Renowned Canadian investor Iain Butler just named 10 stocks for Canadians to buy TODAY. So if you’re tired of reading about other people getting rich in the stock market, this might be a good day for you.
Because Motley Fool Canada is offering a full 65% off the list price of their top stock-picking service, plus a complete membership fee back guarantee on what you pay for the service. Simply click here to discover how you can take advantage of this.

Click Here to Learn More 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 Stephanie Bedard-Chateauneuf owns shares of DOLLARAMA INC. The Motley Fool recommends Nutrien Ltd.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.