Volatility is back! You could argue that it never really left us. It’s just something that all investors need to take into consideration from time to time. Finding that right mix of income and growth investments is a key way to offset some of that volatility from your portfolio. Fortunately, the market gives us plenty of options to consider, including some superb dividend stocks
Here are some of those options to consider buying for your portfolio.
Fast food, fast income, and lots of growth potential
There are some businesses that are mostly immune to the volatile economy. Specifically, these are businesses that cater to a specific and very necessary segment of the market. Prime examples of this include food, shelter, and utility investments.
Within that broad segment, let’s take a moment to talk about fast food. More specifically, Restaurant Brands International (TSX: QSR)(NYSE: QSR). Restaurant Brands is the name behind Burger King, Tim Hortons, Popeyes, and, most recently, Firehouse Subs.
What exactly makes Restaurant Brands a superb dividend stock you should buy? When markets market begins to cool, consumers will look for more frugal dining options. That includes fast-food options like those provided by Restaurant Brands.
In fact, during the pandemic, the company pushed aggressively on expanding its loyalty program and delivery service. This more than offset the closure of dining areas.
Also, it’s worth noting that Restaurant Brands has also taken an aggressive stance on expanding to new markets. Specifically, the company has followed the successful franchising model of Burger King and applied to Tim Hortons. This has allowed the coffee chain to expand to new markets, which is something it has traditionally had problems with in the past. This factor alone holds massive long-term growth potential.
Finally, let’s talk about dividends. Restaurant Brands offers a quarterly dividend with a yield of 4.32%. This makes Restaurant Brands one of the superb dividend stocks for any portfolio.
Buy this retailer that pays over 3%
Yes, you heard that right: it’s a retail stock that offers a dividend over 3%. That company is Canadian Tire (TSX: CTC.A), and that yield currently sits at 3.25%.
Retail stocks are usually higher-risk options, especially during times of volatility. So, what then qualifies Canadian tire on this list of superb dividend stocks? There are a few key reasons.
First, let’s look at Canadian Tire’s business. The Tire is one of the oldest retailers in the country. It has significant brand loyalty among shoppers, which helps it to generate a stable revenue base from its network of stores located around the country.
Further to this, the company owns several diversified brands apart from its namesake. This includes established names such as SportChek, Mark’s, and Party City.
Unlike most traditional brick-and-mortar retailers, Canadian Tire has embraced technology and mobile commerce. The company has managed to integrate technology into the sales process in innovative ways. The retailer has also digitized its popular weekly flyer and even acquired exclusive brands only available online and in-stores.
In short, Canadian Tire is a well-established retailer with a growing physical and digital moat surrounding a growing number of brands. Throw in that juicy dividend, and you have a great long-term investment for any portfolio.
Superb dividend stocks include your wireless data
Canada’s telecoms are some of the most defensive, stable businesses on the market. There’s a good reason for that. Telecoms provide a necessary service to a broad spectrum of the population. Those services are also becoming a necessity in our modern society.
That’s just one part of the reason why BCE (TSX: BCE)(NYSE: BCE) is a great stock to buy now and hold for decades. BCE is one of the largest telecoms in the country with its core subscription services offered nationwide.
The company also operates a massive media arm, which provides a complementary revenue stream to its core subscription business.
Those defensive segments continue to provide a stable and recurring revenue stream for the company. In turn, that revenue gets passed on to investors in the form of a juicy dividend. That dividend currently works out to a yield of 5.37%, making it a superb dividend stock for any portfolio.
