Market Correction: 2 Top Dividend Stocks to Own

These two dividend stocks could be worthwhile additions to your portfolio if you are looking for high dividend yields.

| More on:
edit Woman calculating figures next to a laptop

Image source: Getty Images.

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The S&P/TSX Composite Index went on sale this past Thanksgiving, as the Canadian benchmark index declined by 5.31% between November 25 and December 1, 2021. At writing, the index is up by almost 2% from its December 1, 2021, levels. However, the sharp decline could be a sign that a market crash is likely in the near future.

Investors worried about a market crash should start planning for a market correction, as we inch closer to 2022. Dividend investing with the right income-generating assets could be a good way for you to gear up your self-directed portfolio and capitalize on a downturn. The right high-quality dividend stocks can continue providing you with investment returns through shareholder dividends while you wait for the stock market to recover.

Today, I will discuss two dividend stocks that you could consider adding to your portfolio for this purpose.

Suncor Energy

Suncor Energy (TSX:SU)(NYSE:SU) is a Calgary-based $45.31 billion market capitalization integrated energy company. The oil sands giant has been through a rough time due to the pandemic, but it managed to turn things around in 2021 as economies began reopening and energy demand surged. The recent pullback in the stock market saw its shares decline by over 10% between November 25 and December 1.

WTI oil prices are going down amid concerns about a reduction in travel demand due to the possibility of more lockdowns. Oil prices were due for a downside correction, as several countries worldwide planned to release strategic reserves that would bring down prices. Despite reduced oil prices, Suncor stock is generating significant revenues.

At writing, the stock is trading for $31.10 per share, and it boasts a juicy 5.40% dividend yield.

TC Energy

TC Energy (TSX:TRP)(NYSE:TRP) is a Calgary-based $57.93 billion market capitalization energy company that develops and operates energy infrastructure in Canada, the U.S., and Mexico. The company boasts an extensive network of natural gas pipelines in the three countries that span over 93,000 km and operates primarily as a natural gas transmission and storage business. It also has oil pipelines and power-generation facilities in its portfolio.

TC Energy has also become a prominent player in the hydrogen market. TC Energy recently announced two partnerships to establish hydrogen production facilities. It is also exploring the prospects of a carbon-sequestration site in the Canadian energy patch to align with global plans for a greener future.

At writing, TC Energy stock is trading for $58.90 per share, and it boasts a juicy 5.91% dividend yield.

Foolish takeaway

Suncor Energy stock and TC Energy stock are high-quality income-generating assets that boast juicy dividend yields. If a market downturn occurs, a decline in their share prices could inflate the dividend yields that these two publicly listed companies offer, but the companies have wide enough economic moats to ride out the wave.

High-yield-chasing investors could consider adding Suncor stock and TC Energy stock to their investment portfolios right now for this purpose.

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 has no position in any of the stocks mentioned.

More on Dividend Stocks

analyze data
Dividend Stocks

2 Safe Dividend Stocks That Could Help You Fight Inflation

A dependable stream of passive income is one way to help offset rising inflation rates. Here are two top dividend…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

Stay Invested in a Recession: Increase Positions in 2 Value Stocks

The suggestion of market analysts is to increase positions in two value stocks if you want to stay invested amid…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Dividend Stocks to Buy as Inflation Surges in Canada

If you're worried about how surging inflation may impact your portfolio, here are three of the best dividend stocks to…

Read more »

You Should Know This
Dividend Stocks

High Inflation: The Good and the Bad for Canadians

Consider tucking away some of your long-term savings in quality dividend stocks like Brookfield Infrastructure in this correction.

Read more »

Dividend Stocks

TFSA Investors: Turn $1,000 Into $10,000 in 10 Years

10-fold growth within a decade is rare but not unheard of. You can capture this growth either by predicting a…

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

1 Oversold REIT Stock to Buy for Safe Dividends

If you're looking for stable dividend income from an oversold stock, this office REIT is a perfect option.

Read more »

edit Real Estate Investment Trust REIT on double exsposure business background.
Dividend Stocks

3 Cheap Canadian REITs to Buy in 2022

Are you looking for passive income? Start treasure digging in cheap Canadian REITs in this market correction!

Read more »

Dividend Stocks

TFSA Passive Income: 3 Undervalued, High-Yield TSX Dividend Stocks to Buy Now

These top TSX dividend stocks with high yields now look attractive to buy for TFSA passive income.

Read more »