As we’ve seen over the last few months, the best Canadian dividend stocks to buy can help protect your portfolio during times of uncertainty.
When you find a company that has strong and resilient operations and can consistently earn impressive cash flow, it’s one of the best investments to make.
Not only do these stocks typically return a tonne of attractive passive income to investors. But because they are so safe, the demand for these stocks increases during times of uncertainty.
So, these are often less volatile than other stocks, which aren’t quite as safe, but it’s not unreasonable to see these stocks also gain in value as investors look to add defence to their portfolios.
So if you’re looking to buy the best Canadian dividend stocks for your portfolio in April, whether you’re just looking to grow your passive income or you want to add defence, here are two of the top companies to consider.
One of the best Canadian dividend stocks to buy and hold for decades
One of the best core Canadian stocks you can buy for your portfolio, whether in April or anytime for that matter, is BCE (TSX:BCE)(NYSE:BCE). As long as you aren’t completely overpaying for BCE, you typically don’t have to worry too much about the price you buy it at. Over the long run, it will continue to increase in value and grow the passive income it returns to investors.
This is why the stock is such an ideal investment because it’s a company you can have confidence in. BCE’s operations are so essential, and therefore the cash flow the company earns is so robust. Everyone wants and needs access to communications. Plus, because the company owns long-life assets, which require little maintenance, the stock is constantly bringing in tonnes of cash flow.
In addition to BCE’s resiliency, though, as we’ve seen for decades, long before the internet was even invented, these stocks have been long-term growth stocks for decades.
So on top of everything else, it’s not surprising that BCE is also a top dividend growth stock. In fact, in just the last five years, investors in BCE stock have seen the passive income they receive grow by 28%. And today, the stock offers a yield of roughly 5.3%.
So if you’re looking for the best Canadian dividend stocks to buy in April, BCE’s one of the top passive income generators on the TSX.
Dividend aristocrats are some of the best investments you can make
Another excellent stock you can’t go wrong with, especially if you’re looking to protect your capital, is Fortis (TSX:FTS)(NYSE:FTS), the massive utility stock.
Fortis is a Canadian dividend aristocrat much like BCE, and in fact, it’s one of the oldest dividend aristocrats in Canada, with an incredible 48 consecutive years of dividend increases. So if you’re looking for the best Canadian dividend stocks to buy in April, there’s no question Fortis deserves consideration.
Fortis is an incredibly safe investment. Not only does it offer electricity and gas utility services to over 3 million customers, but its assets are spread out all across North America, giving it a tonne of diversification.
In addition, it’s not just defensive. It’s also a low-risk growth stock. Fortis typically has a good idea ahead of time of how much growth each capital project will earn the business, which is part of the reason why its dividend is so safe and is constantly being increased every year.
Although, if you are looking for a higher yield, Fortis’ only yields 3.4% today, compared to BCE’s 5.3%. However, it has increased the dividend by over 33% in just the last five years.
So it’s certainly one of the best Canadian dividend stocks to buy for your portfolio, especially if all this uncertainty continues in April.
