The stock market is full of opportunities right now. After reaching new all-time highs and entering an increasingly overvalued territory, the pandemic saw the broad equity markets take a plunge.
The markets began a miraculous recovery in the months following the February and March 2020 crash. Things have become significantly better for the stock market, as the S&P/TSX Composite Index reached another all-time high. So far, there is no way to tell when, or even if, we will see bear market conditions again. But higher overall valuations should indicate the need to practice a certain degree of caution with your investment capital.
Dividend investing is an excellent way for you to achieve your financial goals while practicing caution during uncertain market environments. Today, I will discuss two buy-and-hold dividend stocks that should be no-brainer picks for you if you have $1,000 to invest in the stock market right now.
Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is one of the best stocks you can buy and hold in your portfolio today if you have the capital to invest in the stock market. The company owns a massive portfolio of diversified infrastructure assets diversified spread worldwide, managed by one of the best investment managers on the planet.
The fund’s portfolio is impressive, boasting assets like data storage, utility roads, and more than 32,000 km of railroad operations. The businesses that BIP owns and operates play a crucial role in their respective economies, making BIP an ideal stock to own in any market environment. The fund boasts a vast economic moat, and its management is skilled in allocating the capital from its different businesses to strengthen the rest.
Trading for $71.52 per share at writing, the stock is up by 13.20% on a year-to-date basis and has plenty more room to grow regardless of the operating environment.
goeasy (TSX:GSY) is a stock that has made its shareholders wealthier individuals by delivering stellar shareholder returns in the last few years. The double-digit growth for the sub-prime lending firm’s top and bottom line has allowed the stock to appreciate by over 2,000% in the last decade and 208% in the previous 12 months at writing.
The sub-prime lending market is enormous. Between the massive demand for its services, its growing loan portfolio, strategic acquisitions, and operating leverage, it is no surprise that goeasy stock has appreciated so much since last year. With plenty of room left to grow, goeasy stock can continue providing its shareholders with wealth growth for a long time.
The stock is trading for $200.33 per share at writing, boasting a meagre but respectable 1.32% dividend yield at writing.
Investors who own these high-quality businesses can continue to hold onto the shares and enjoy consistent and reliable returns through shareholder dividends. Should the market see another downturn anytime soon, the payouts from these income-generating assets can provide you with relative safety for your investment capital and let you grow your wealth in the long run.
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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infra Partners LP Units and Brookfield Infrastructure Partners.