After starting 2022 on a positive note, TSX stocks have seen a roller-coaster ride in the last three months. The TSX Composite benchmark fell by 9% in June, posting its biggest monthly losses since March 2020. While the index has seen some recovery since June, investors are still apparently nervous due mainly to macro concerns, including high inflation, rising interest rates, a continued supply chain crisis, and rising geopolitical tensions. These factors have fueled concerns about a near-term recession.
As the stock and commodity markets across the globe continue to witness high volatility, it’s time for TSX investors to add some safe dividend stocks to their portfolios. In this article, I’ll highlight two of the safest dividend stocks on the TSX you can buy right now.
Bank of Nova Scotia stock
Speaking of the safest stocks in Canada to buy now, Bank of Nova Scotia (TSX: BNS)(NYSE: BNS) is the first stock that comes to my mind. The Toronto-based bank currently has a market cap of about $98.5 billion. BNS stock trades with 8.7% year-to-date losses at $81.79 per share, underperforming the broader market, despite its strong post-pandemic financial recovery.
In the April quarter, Scotiabank reported a 2.7% YoY (year-over-year) rise in its total revenue to $7.94 billion with the help of its continued momentum in fee income in Canada and robust loan growth across geographical segments. With this, the bank registered a 14.7% YoY increase in its adjusted earnings for the quarter to $2.18 per share, beating Street analysts’ estimate of around $1.96 per share. In addition, Scotiabank’s global wealth management segment is continuing to perform well, even in the post-pandemic era due to higher mutual fund fees and strong volume growth in private banking.
Moreover, the consistency in its operating performance, its multiple growth initiatives across business lines, and its strong balance sheet make BNS one of the safest TSX dividend stocks to buy now. Its stock offers a 5% dividend yield at the current market price.
Enbridge stock
The next on my list of safest TSX stocks is the Calgary-based energy transportation and infrastructure firm Enbridge (TSX: ENB)(NYSE: ENB). The company currently has a market cap of $113.8 billion, as its stock trades at $56.04 per share with 13.4% year-to-date gains.
Apart from being one of North America’s key energy transportation companies, Enbridge has increased its focus on diversifying its revenue streams in recent years. This is one of the key reasons the Canadian energy firm acquired North America’s premier crude oil facility, Moda Midstream Operating, in a deal worth US$3 billion in 2021. The company expects this acquisition to help it advance its U.S. Gulf Coast export strategy.
In addition, Enbridge has also been striving to grow its renewables business by focusing on renewable natural gas, hydrogen, and carbon-capture and storage segments. These factors will likely accelerate the company’s financial growth further in the coming years. All these factors and its strong dividend yield of around 6.1% make it one of the safest TSX stocks to buy right now, which could continue delivering good returns, even in a tough economic environment.
