Stocks for Beginners: 3 Reliable Dividend Stocks to Buy Right Now

Are you new to investing but don’t want a lot of risk? Here are three safe dividend stocks to build a fortress-like investment portfolio.

| More on:
Young woman sat at laptop by a window

Image source: Getty Images.

Dividend stocks are great assets to hold during times of stock market volatility. While the market might be going down, you can at least collect a stream of quarterly or monthly dividends to offset any temporary losses in your portfolio.

Who knows what will happen with interest rates, geopolitics, or the economy? However, these three Canadian dividend stocks are pretty safe bets if you just want a reliable stream of income.

An energy stock for dividends

While Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) operates in the cyclical oil and gas industry, it has been a dividend rock star for years. For the past 22 years, CNQ has grown its dividend on average by 22% a year! Not many Canadian stocks have that history.

CNQ stock has pulled back recently, as has the price of oil. Fortunately, CNQ can still fund its dividends and operations, even if oil trades at US$30 per barrel. It is an incredibly efficient energy operator, and its assets are long term and sustainable.

That means its current 4.71% dividend yield should be reliable, safe, and likely growing for several years ahead.

top dividend growth stocks

A top infrastructure stock with an outsized dividend

If you aren’t comfortable with direct oil pricing risk, Enbridge (TSX:ENB)(NYSE:ENB) could be a stock with relatively lower risk but a higher yield. After declining 8.8%, its stock is yielding a 6.7% dividend. It has raised its annual dividend for 27 consecutive years. That’s a pretty good track record.

Despite the price of oil declining, Enbridge’s portfolio of pipelines, export terminals, and utilities are mostly contracted. 80% of its businesses have inflation indexation. Likewise, it gets volume upside when energy demand is high (like it is today).

Enbridge has a healthy growth pipeline of natural gas, utility, and renewable power projects. This sets it up perfectly for the coming energy transition, and that is why it’s a great dividend stock to own now and long into the future.

A top telecom for steady income and growth

TELUS (TSX:T)(NYSE:TU) is another great Canadian dividend-growth stock. It has grown its dividend by an 8.6% annual rate for the past 15 years. After an 11% decline this month, it is trading with a 4.77% dividend yield.

TELUS is one of Canada’s leading telecommunications service providers. Yet it is also making strong in-roads into various digital services like virtual health, agriculture technology, and digital customer experience/artificial intelligence.

The company continues to post market leading customer additions and above average earnings and dividend growth. After completing an outsized capital spend, TELUS is expecting to earn very high levels of spare cash.

With that it plans to boost its dividend by 7-10% annually for several years ahead. For a combination of income, growth, and an attractive valuation, TELUS is a great dividend stock to buy today.

The dividend stock takeaway

If you are looking for passive income, now is the perfect time to load up on dividend stocks. These three all have strong business models, well-covered dividends, and dividend growth ahead. They are perfect stocks to weather the recent stock market and economic storm.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Robin Brown has positions in TELUS CORPORATION. The Motley Fool recommends CDN NATURAL RES, Enbridge, and TELUS CORPORATION. The Motley Fool has a disclosure policy.

More on Dividend Stocks

analyze data
Dividend Stocks

Telus Stock Rose 1% in November: Is it a Buy Today?

After a mostly flat November, is Telus one of the best stocks to buy in December, as we head into…

Read more »

money cash dividends
Dividend Stocks

How to Generate $500 in Passive Income Each Month

Instead of letting the stock market control your earnings, take control. Earn stable passive income with this strategy.

Read more »

Dividend Stocks

2 of the Best Stocks to Buy for Fast-Growing Passive Income 

In this economy, you need a passive income that grows fast enough to beat inflation in any situation. These two…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

2 Top TSX Stocks to Buy Now for Passive Income

These top TSX stocks are industry leaders and have good track records of dividend growth.

Read more »

clock time
Dividend Stocks

2 Dividend Stocks to Set and Forget

I guarantee you haven't considered these dividend stocks as ones you can set and forget for decades, for a massive…

Read more »

Target. Stand out from the crowd
Dividend Stocks

1 Oversold Dividend Stock (With a 10% Yield) I’d Buy This December

Fiera Capital is a quality TSX stock that pays investors a handsome dividend yield. Here's why this TSX dividend stock…

Read more »

data analyze research
Dividend Stocks

3 Unstoppable Canadian Dividend Stocks to Buy Before 2023

These three dividend stocks have soundly beaten the TSX in 2022. Here's why they could continue to outperform in 2023.

Read more »

Golden crown on a red velvet background
Dividend Stocks

3 Underrated Dividend Stocks That Are Aristocrats in the Making

These three dividend stocks may not be Dividend Aristocrats yet, but it is highly likely they will be given their…

Read more »