Passive Income: 2 Safe Dividend Stocks to Buy in an Uncertain Market

In today’s uncertain market, these two dividend stocks are perfect choices for a passive-income portfolio.

Now more than ever, I’m looking to add a couple of dependable dividend stocks to my investment portfolio. Passive income generated through dividend stocks is one way to help offset some of the volatility in the stock market.

There’s a list of catalysts to choose from to blame for the stock market’s wild performance this year. Whether it’s interest rates, inflation, or geopolitical concerns, there’s enough uncertainty in the market today for me to bet that volatility will not be going away anytime soon.

All that to say, it was promising to see the Canadian stock market end last week in positive territory. U.S. stocks surged even higher, with the major American indices gaining close to 10%. 

Even if that does mean a bull run is around the corner, I’m still preparing my portfolio for more volatility.

Building a passive-income stream

It’s important to remember that no dividend is ever guaranteed. A company has the right to cut its dividend at any time. However, the TSX has plenty of Dividend Aristocrats with payout streaks spanning decades. As a result, it may be easier than you may think to build a dependable stream of passive income in today’s volatile market.

I’ve reviewed two top dividend stocks that can provide a portfolio with both passive income and defensiveness. I’ll admit that they’re not the most exciting companies on the TSX. But if you’re looking for dependability, there’s absolutely nothing wrong with boring.

Dividend stock #1: Sun Life

Nearing a market cap of $35 billion, Sun Life (TSX: SLF)(NYSE: SLF) is one of Canada’s largest insurers. The company also boasts a growing international presence, providing its global customers with a range of insurance and wealth management services.

A top yield isn’t the only reason Sun Life is on my watch list today. The dividend stock can provide a portfolio with defensiveness, which can be particularly useful during today’s volatile market conditions.

Insurance is far from the most exciting industry to invest in. It is, however, dependable. Sun Life is by no means immune to volatility, but over the long term, I firmly believe that there will still be a strong demand for all sorts of different insurance policies. 

At today’s stock price, Sun Life’s annual dividend of $2.76 per share is good enough for a yield above 4.5%.

Dividend stock #2: Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP) is another slow-growing dependable dividend stock that’s on my watch list right now. 

Similar to insurance stocks, there’s not much to get excited about with utility companies. But if you’re like me, in the process of building a dependable stream of passive income, utility stocks are one of your best bets.

Even more so than in the insurance industry, utility stocks experience very low levels of volatility compared to the majority of companies on the TSX. That’s a result of the dependable nature of the utility business. Irrespective of the health of the economy, demand for utilities doesn’t waver all that much. 

At today’s stock price, Brookfield Infrastructure Partners’s annual dividend of $1.82 per share yields just under 4%.

Brookfield Infrastructure Partners may not be able to match Sun Life’s 4.5% yield, but it sure makes up for it with the defensiveness that it provides a portfolio.

Fool contributor Nicholas Dobroruka has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infra Partners LP Units.

More on Dividend Stocks

man shops at grocery store
Dividend Stocks

A High Dividend Yield Can Be a Warning Sign: Here’s Why

A high dividend yield can signal trouble. TELUS and Slate Grocery REIT show why investors should examine what supports their…

Read more »

Real estate investment concept
Dividend Stocks

Paying Off the Mortgage or Saving for Retirement First? A Guide for Your 40s and 50s

Find out how rates, renewals and tax rules shape your choice in your 40s and 50s, and where blue chip…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

$14,000 in a TFSA: 2 Stocks I’d Buy for Meaningful Monthly Cash Flow

Cardinal Energy (TSX:CJ) and another monthly income play that's fit for those seeking huge dividends and deeper value.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use a TFSA to Generate an Average of $500 in Monthly Tax-Free Income

Unlock the potential of a TFSA for tax-free savings. Discover strategies to generate income while minimizing taxes for the future.

Read more »

senior man smiles next to a light-filled window
Dividend Stocks

This Stock Pays You a 4.7% Dividend Every Single Month

Sienna Senior Living's seemingly safe 4.7% monthly dividend yield, eligible dividend tax perks, and strong growth potential appear attractive today

Read more »

Piggy bank with word TFSA for tax-free savings accounts.
Dividend Stocks

Most Canadians Pick the Wrong Investing Account First: Don’t Be One of Them

Your first investing account matters far more than your first stock. Compare the TFSA, RRSP and FHSA for 2026 and…

Read more »

money goes up and down in balance
Dividend Stocks

Building a Retirement Paycheque: Where Each Dollar Comes From

Thinking about retirement? Find methods to create passive income to cover daily expenses and enhance your financial freedom.

Read more »

Three children jump on an outdoor trampoline
Dividend Stocks

The RESP Deadline is December 31: Ottawa Adds 20% for Free

An affordable RESP contribution can attract a 20% basic grant, with December timing, catch-up limits, and the child's age shaping…

Read more »