Are you new to stock market investing? Becoming an investor can be difficult, especially if you’re investing for the first time when the market is going through a downturn. The possibility of a recession is high, and stock prices across the board are uncertain.
If you’re new to investing and are researching stocks for beginners, it might be best to stick with relatively safe stocks. Canadian Dividend Aristocrats are typically some of the safest stocks you can invest in during any market condition. Today, I will give you a quick overview of what makes these dividend stocks so special and discuss two assets you should have on your radar.
What are Canadian Dividend Aristocrats?
Dividend Aristocrats are dividend-paying stocks with a track record of raising shareholder dividends for several consecutive years. If a company increases the payouts of profits it shares with investors, it’s likelier to deliver stronger long-term returns.
Companies that deliver consistent dividend hikes tend to have favorable long-term outlooks. These companies usually offer essential services that allow them to generate decent revenues in all market conditions.
Gaining exposure to a few high-quality dividend stocks can help you get your stock market investing career off to a good start. You can rely on these stocks to provide you with passive income generated through reliable dividend payouts regardless of the broader economic conditions.
Fortis
Fortis Inc. (TSX:FTS)(NYSE:FTS) is a utility holdings company with a $28.90 billion market capitalization. It provides over 3.4 million customers across Canada, the U.S., the Caribbean, and Central America with electricity and natural gas utility services. Regardless of the economic situation, people require these essential services, making its revenues virtually guaranteed even in recessionary periods.
Fortis stock trades at $60.49 per share at the time of this writing and boasts a healthy 3.54% dividend yield. The company generates most of its revenue through highly rate-regulated and long-term contracted assets.
Fortis’ ability to earn a predictable income allows its management to comfortably fund capital programs and grow shareholder dividends. With a 48-year streak of delivering dividend hikes, it’s one of the top Canadian Dividend Aristocrats on the TSX.
Enbridge
Enbridge Inc. (TSX:ENB)(NYSE:ENB) is a multinational pipeline company with a $116.21 billion market capitalization. Headquartered in Calgary, Enbridge is responsible for transporting a massive portion of the natural gas and crude oil consumed in North America. The company plays a vital role in the region’s economy, making its revenue streams relatively secure.
Enbridge stock trades at $57.51 per share at the time of this writing and boasts a juicy 5.98% dividend yield. It’s increased its shareholder dividends for 27 consecutive years.
The fact that it’s managed to deliver dividend hikes amid the worst period that the energy sector has seen in recent years reflects its strong financial performance and long-term outlook. It could be a valuable addition to your portfolio if you seek reliable dividend income.
Foolish takeaway
Canadian Dividend Aristocrats are companies that deliver consistent dividend growth. These income-generating assets warrant being staples in every investor’s portfolio. Dividend Aristocrats can be invaluable to achieving long-term wealth growth through reliable and growing shareholder dividends.
Fortis and Enbridge stocks are two such assets that you should consider adding to your portfolio.
