If you’re looking for some of the safest stocks that you can buy for your portfolio today, there’s no question that high-quality dividend stocks are some of the best choices.
Not every stock that pays a dividend is defensive or offers a tonne of reliability. Often a high-yield dividend can be a sign of trouble. However, when you can find well-established businesses with resilient operations, these are the dividend stocks you can buy with confidence even in this market environment today.
This is because you can count on the income from the dividends even if the market is flat or declining. Furthermore, many of these high-quality stocks will also be keeping cash flow to invest in growth, which will help the share price to grow over the long run, as well as allowing for more dividend increases down the line.
Already many high-quality dividend stocks have been gaining in value or at least outperforming the market on days where the TSX is selling off due to uncertainty.
So if you’re looking to shore up your portfolio and buy dependable dividend stocks, here are two that you can buy with confidence today.
Image source: Getty Images
A highly dependable royalty stock
One of the most dependable high-yield dividend stocks that you can buy for your portfolio is Pizza Pizza Royalty (TSX:PZA).
Pizza Pizza is one of the best dividend stocks to buy today because, in addition to being reliable, it also offers investors a significant dividend that currently yields upwards of 6%. Plus, because it’s a royalty company that earns its revenue from the sales that its locations generate, the revenues are typically very stable.
From 2016 until the pandemic began, for 17 consecutive quarters, Pizza Pizza’s trailing 12-month revenue was between $35 and $36 million. This goes to show just how stable its revenue is. And, because the stock has few expenses, its dividend is just as reliable.
While it was impacted by the unprecedented pandemic and especially the significant shutdowns in the early months, its recovery has been impressive. Plus, the fact that we haven’t quite put the pandemic in the rearview yet means that there is still recovery potential with Pizza Pizza, another reason it’s a top dividend stock to buy today.
Over the last 12 months, Pizza Pizza’s revenue has been roughly $32 million, about 10% below where it was before the pandemic.
So if you’re looking for a highly dependable stock that offers an attractive dividend as well as more recovery potential, Pizza Pizza is one of the best dividend stocks to buy today.
One of the best dividend stocks to buy today
Another high-quality, high-yield dividend stock to buy that’s highly dependable is Enbridge (TSX:ENB)(NYSE:ENB).
Enbridge is one of the most dependable dividend stocks due to its massive size, the fact that energy is such a defensive industry, and because its operations are critical to the North American energy industry.
The dividend stock has a significant economic moat, with high barriers to entry and long-life assets that make it a major cash cow. So it’s earning tonnes of cash, allowing it to pay the significant dividend while keeping capital for future growth. In addition, with the energy industry now seeing a tailwind, Enbridge has more upside potential today.
Right now, its dividend offers a yield of roughly 6%. Plus, the company increases that dividend each year and has been doing so for over a quarter-century now.
So if you’re looking for a high-quality dividend growth stock at the heart of our economy, Enbridge is one of the most dependable stocks you can buy today.
