The market correction is making quality stocks more attractive. Investors should take this opportunity to accumulate shares in wonderful businesses. Here are three of the best dividend stocks I’m eyeing.
A top dividend stock in the utility sector
Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is one of the best utility stocks to own for the long haul. The dividend stock has grown investors’ money almost six-fold in the last 10 years, turning an initial $10,000 investment to about $59,340.
Investors can rely on the utility for growing cash distributions. So far, it has held up relatively well in the correction, which will probably provide an even better buying opportunity over the next few months.
Its defensive portfolio is globally diversified across cash cow assets in the utility, transport, midstream, and data infrastructure industries. BIP is confident in its ability to increase cash distributions by 5-9% per year. Currently, it provides a yield of 3.8%.
Investors can also invest in the equivalent corporation shares of the company under the tickers TSX:BIPC and NYSE:BIPC. These shares pay out dividends instead of cash distributions.
Leading BIP is Brookfield Asset Management (TSX:BAM.A)(NYSE:BAM), its general partner and manager, which is also a great buy in this market correction.
This growth stock is a must-buy in market downturns
Brookfield Asset Management is a global alternative asset manager that owns, invests, and operates infrastructure, private equity, renewable power, and real estate assets. It’s well positioned to grow in a high-inflationary environment. Rising interest rates are also weighing down the valuation of quality assets that it can scoop up at a cheaper valuation.
In the last year or so, BAM increased its fee-bearing capital by 19% (i.e., US$60 billion) to US$379 billion. It also raised US$71 billion in the year and sourced opportunities on the ground, investing US$70 billion across high-quality investments. It’s a value investor that’s not shy to capitalize on mature assets. In the period, it monetized US$37 billion worth of assets and booked some lucrative gains.
For the long haul, BAM targets a 12-15% rate of return on its investments. BIP is but one of the listed entities it owns a large stake in and generates substantial cash flows from.
The growth stock has almost turned an initial $10,000 investment to about $46,620 in the last 10 years. It’s an incredible opportunity to accumulate BAM shares during this market correction.
National Bank of Canada (TSX:NA) is another wonderful business you can buy and forget.
One of the best Canadian bank stocks to own
As the sixth-largest bank in Canada, the bank’s spotlight is often stolen by its bigger peers. However, investors should pay more attention to the “little” bank stock. It’s not really that small. Its market cap is close to $30 billion. Its yearly net income is securely over $3 billion.
Importantly, the bank stock has outperformed its larger peers in total returns over the last three, five, and 10 years. The stock has more than tripled investors’ money in the last decade, turning an initial $10,000 investment to about $35,490.
Big Six Canadian Bank stocks Total Return Level data by YCharts
At $88.47 per share at writing, National Bank trades at a decent discount of about 15% from the analyst consensus price target according to Yahoo Finance. It also offers a nice yield of almost 4.2%. Investors should definitely consider scooping up cheap shares in this market correction.
