As uncertainty lingers and many stocks are losing rather than gaining value, it’s crucial to own defensive businesses that will be minimally impacted by volatility. Add in a safe and attractive dividend yield, and these will be some of the best stocks to buy.
Investing in companies that have reliable operations and can weather adverse economic environments is crucial. This way, you don’t have to worry about your investment being severely impacted or the passive income you’re receiving drying up.
So, if you’re looking for some of the best and safest dividend stocks to add to your portfolio today, here are two to consider.
A top Canadian REIT to buy and hold for the long haul
Plenty of real estate stocks are excellent dividend-payers to buy and hold for the long haul. One of these stocks that offers consistent growth in its distributions and a tonne of reliability is CT REIT (TSX: CRT.UN).
CT REIT is largely owned by Canadian Tire. It also receives about 90% of its revenue from this Canadian legend. And because Canadian Tire is such a well-known brand that’s been performing exceptionally well in recent years, CT REIT has been an ultra-safe investment.
The stock was minimally impacted by the pandemic and has faced far fewer headwinds than its retail REIT peers. Plus, the fact that almost all of its sales come from its parent company which is one of the most reliable retailers in Canada, CT REIT keeps its payout ratio manageable while consistently increasing its distribution each year.
For example, over the last 12 months, its funds from operations per unit has been roughly $1.24. Meanwhile, CT REIT only pays a distribution of $0.86 per unit annually. Therefore, its payout ratio is below 70%, an ultra-safe amount, even though its current yield is highly compelling at around 5.4%.
So, if you’re looking for dividend stocks that can provide reliable passive income, CT REIT is one of the best to buy today.
This gold stock is one of the best dividend stocks to buy now
You may be surprised to learn that B2Gold (TSX: BTO)(NYSEMKT: BTG) is one of the best dividend stocks you can buy today.
While B2Gold has been losing significant value this year due to falling gold prices, it’s still profitable at these levels, and its dividend is ultra-safe.
Not only does B2Gold have a current payout ratio of 44% over the last 12 months, it also has over $500 million of net cash on its balance sheet. This is crucial because as the price of gold falls, B2Gold’s profitability will fall too, which will naturally increase its payout ratio.
But because the dividend is so conservative combined with the fact that there’s lots of cash on B2Gold’s balance sheet, there’s minimal risk to the dividend.
Furthermore, as the stock has become significantly cheaper in recent months, B2Gold’s dividend yield has now risen to more than 4.7%.
So, if you’re looking for some of the best and safest dividend stocks to buy, keep in mind that B2Gold provides incredible passive income, and when gold prices eventually recover, it could also offer considerable upside.
