3 Steady TSX Stocks to Buy This Fall

There is no telling how the market uncertainty will pan out in the coming months. Investing in these three low-volatility dividend stocks might be a good idea right now.

The S&P/TSX Composite Index is down by 14.45% from its 52-week high as of this writing, as it remains volatile this year. Stock market investing is inherently risky due to the volatile nature of equity securities. However, the TSX boasts several high-quality dividend stocks that can deliver more reliable returns on your investments in various market environments.

Stock markets have a cyclical nature, and there are bound to be ups and downs in the economy. Canadians with a long investment horizon can use the downturns to their advantage by identifying and investing in high-quality dividend stocks to capture higher yields. When the underlying business is strong, it has the potential to remain resilient during stock market crashes.

Buying and holding these stocks means that the long-term returns dwarf the short-term losses during downturns. Today, I will discuss three stable dividend stocks you can add to your portfolio for relatively safer and stable returns through shareholder dividends.

Image source: Getty Images

BCE

BCE (TSX: BCE)(NYSE: BCE) is a $56.84 billion market capitalization giant in the Canadian telecom space. It is the biggest telecom company in a largely consolidated industry, putting it in an excellent position to dominate the market share.

The company boasts a strong balance sheet than its peers, and it looks well positioned to beat them in the 5G rollout. BCE’s investments to aggressively expand and bolster its network infrastructure over the last few years will likely result in accelerated financial growth in the coming years.

As of this writing, BCE stock trades for $62.33 per share and boasts a juicy 5.90% dividend yield. It is a Canadian Dividend Aristocrat with a 13-year dividend-growth streak. It is a low-risk business due to the essential nature of its services, making it a relatively safer investment.

Fortis

Fortis (TSX: FTS)(NYSE: FTS) is a $26.94 billion market capitalization utility holdings company that owns and operates several natural gas and electric utility businesses across Canada, the U.S., Central America, and the Caribbean.

The company operates in a highly regulated environment, relying primarily on long-term contracted assets to generate revenues. Its business model allows Fortis to create predictable cash flows that it can use to fund its capital programs and grow its shareholder dividends.

As of this writing, Fortis stock trades for $56.27 per share and boasts a 3.80% dividend yield. It is also a Canadian Dividend Aristocrat, with a 48-year dividend-growth streak. The company’s low-risk nature and essential services make it a safe investment for investors seeking stability in an uncertain market environment.

Royal Bank of Canada

Royal Bank of Canada (TSX: RY)(NYSE: RY) is Canada’s largest bank by market capitalization and the biggest publicly traded company on the TSX for the same reason.

The $177.16 billion market cap financial institution is a resilient business that has been around since 1864, and it was one of the first dividend-paying companies in Canada. Without fail, it has paid its shareholders a portion of its profits for the last 152 years.

RBC stock had to freeze its dividend hikes during the 2008 financial crisis. Since then, it has delivered growing shareholder dividends yearly. As of this writing, RBC stock trades for $124.98 per share and boasts a 4.10% dividend yield. It could be another excellent long-term, buy-and-hold investment for all market environments.

Foolish takeaway

The ups and downs caused by volatile market environments can become irrelevant when you invest for the long term, provided you can identify the right buy-and-hold assets. BCE stock, Fortis stock, and RBC stock are at the top of their respective industries.

All three businesses boast solid operations, excellent financial performances, and the ability to continue paying shareholder dividends in harsh economic environments. These three dividend stocks can be excellent additions to your self-directed portfolio.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How I’d Structure My $14,000 TFSA for Constant Income

If you have $14,000 saved in your TFSA, here is one easy investment strategy to earn $50 of tax-free monthly…

Read more »

woman looks at iPhone
Dividend Stocks

I’m Not Selling Telus After the 55% Dividend Cut: Here’s Why

Contrary to what the market seems to be saying, Telus Corporation (TSX: T) still has a lot going for it.…

Read more »

monthly calendar with clock
Dividend Stocks

A No-Nonsense 3.7% Dividend Stock That Can Pay Retirees Monthly

This no-nonsense dividend stock has returned more than $3.4 billion to shareholders through dividends since 2013.

Read more »

dreaming of financial success
Dividend Stocks

3 Questions to Ask Before Buying a Dividend Stock

Buying a dividend stock? Here are three questions to help you look beyond the yield, with examples from Enbridge, Fortis…

Read more »

Woman in private jet airplane
Dividend Stocks

Make $100 a Month Tax-Free: How Much to Invest in Diversified Royalty and Where

The TFSA is the ultimate investment account to place your money and earn tax-free income.

Read more »

man in bowtie poses with abacus
Dividend Stocks

Passive Income From Dividends: What Canadians Can Realistically Expect

Here's the actual dividend math the passive income gurus won't show you.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

RRSP, TFSA or Both? A Quick Guide by Income Level

Your RRSP and TFSA are complementing accounts that you can use to shield your income from taxes.

Read more »

Real estate investment concept with person pointing on growth graph and coin stacking to get profit from property
Dividend Stocks

Buying Your First Home? The $8,000 FHSA Deduction Most Renters Miss

An eligible renter's $8,000 FHSA contribution can save $2,400 at a 30% tax rate, with the purchase date guiding investments.

Read more »