Dividend stocks are well known to play an important role in investors’ portfolios. Especially today, with so many factors impacting the economic and investing environment, finding the best dividend stocks to buy can be crucial to building a portfolio that can withstand volatility.
What’s difficult for investors is that, often, the safest and most resilient dividend stocks that pay reliable dividends also don’t have businesses that offer spectacular growth potential. These stocks will surely continue to increase their earnings and raise their dividends, albeit slowly.
This is why it’s crucial to have solid diversification in your portfolio, owning both reliable stocks and high-potential growth stocks. However, there are some businesses that offer both robust and reliable earnings today that also offer significant growth potential over the coming years.
So, if you’re looking for the best Canadian dividend stocks to buy now, here are two impressive businesses to consider buying and holding for years.
One of the best green energy stocks dividend investors can buy
If you’re looking for the best dividend stocks that you can buy that offer attractive passive income, but, more importantly, tonnes of long-term growth potential, one of the first stocks you’ll want to consider is Brookfield Renewable Partners (TSX: BEP.UN)(NYSE: BEP).
Brookfield is a massive green energy company with assets diversified throughout North America, South America, Europe, and Asia. The company is easily the largest renewable energy stock in Canada, with roughly 21,000 megawatts of generating capacity. However, it’s far from just a renewable energy generator.
While it does own hydro, solar, and wind generating assets, it also owns storage facilities as well as a range of other renewable energy technologies.
Brookfield’s well-diversified portfolio makes the stock highly attractive, because it’s so safe. However, the massive size of Brookfield’s portfolio and its incredible deal flow mean that investors have exposure to some of the best opportunities in the world.
And because power generation is an industry that’s highly defensive, Brookfield and its 3.5% dividend yield will be highly robust.
If you’re looking to buy the best dividend stocks that can return passive income but also grow consistently for years to come, Brookfield is one of the best to buy.
A high-quality utility stock with significant long-term growth potential
In addition to Brookfield, another high-quality dividend stock to consider today is Algonquin Power & Utilities (TSX: AQN)(NYSE: AQN). Algonquin is one of the best dividend stocks you can buy, because it’s an incredibly reliable utility stock that has exposure to the long-term potential of green energy.
Right now, roughly two-thirds of Algonquin’s business comes from its utility operations. And because it has so much exposure to utilities, one of the safest and most resilient industries you can invest in, it could be an even better buy than Brookfield today, especially for those investors seeking more defence.
Plus, not only is Algonquin more reliable because it’s more of a utility stock, but for those investors looking for a higher-yielding stock, Algonquin’s dividend currently yields roughly 4.5% — almost 100 basis points more than Brookfield.
It’s always crucial to have some defensive and highly robust stocks in your portfolio. However, in this market environment, these stocks and the passive income they provide can go a long way.
If you’re looking to buy some of the best Canadian dividend stocks for your portfolio amid all this recent volatility, Algonquin is, without a doubt, one of the top stocks to consider.
