5 Dividend Stocks With Reliable Income in a Bearish Market

Canadian investors sweating out a potential bear market may want to target dividend stocks like Capital Power Corp. (TSX:CPX) and others.

| More on:

The S&P/TSX Composite Index plunged 252 points on Tuesday, December 6. This was the second straight triple-digit loss to open the first full trading week of this month. Canadian stocks have looked shaky to start December after putting together a strong run since the middle of October. Today, I want to look at five dividend stocks that offer consistent income. These could offer stability in a bear market. Let’s jump in.

A bull and bear face off.

Source: Getty Images

This energy infrastructure giant is worth trusting in a bear market

Enbridge (TSX: ENB) is the largest energy infrastructure company in North America. Shares of this Calgary-based energy stock have dropped 3.5% week over week as of close on December 6. The stock is still up 8.5% in 2022.

This company released its third-quarter (Q3) fiscal 2022 earnings on November 4. Enbridge posted adjusted earnings of $1.4 billion, or $0.67 per common share — up from $1.2 billion, or $0.59 per common share, in the third quarter of fiscal 2021. Shares of this dividend stock currently possess a favourable price-to-earnings (P/E) ratio of 19. Moreover, it offers a quarterly distribution of $0.887 per share. That represents a tasty 6.6% yield.

Here’s a dividend stock that offers very strong monthly income

Keyera (TSX: KEY) is a Calgary-based company that is also engaged in the energy infrastructure business. This dividend stock is up 8.5% in the year-to-date period. That has pushed its shares into the black year over year. Investors hungry for peace of mind in a bear market may want to seek out monthly income.

In Q3 2022, Keyera posted funds from operations (FFO) of $218 million compared to $168 million in the third quarter of 2021. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This stock last had an attractive P/E ratio of 13. Better yet, Keyera offers a monthly dividend of $0.16 per share, which represents an excellent 6.1% yield.

Don’t sleep on this dividend stock in the green energy space

Capital Power (TSX: CPX) is an Edmonton-based company that develops, acquires, owns, and operates renewable and thermal power-generation facilities in Canada and the United States. Its shares have shot up 11% month over month as of close on December 6. The stock has climbed 21% so far in 2022. Canadian investors can scoop up a red-hot dividend stock and gain exposure to the green energy space.

The company unveiled its Q3 fiscal 2022 results on October 31. Capital Power achieved total revenues of $786 million — up from $377 million in the previous year. Meanwhile, adjusted EBITDA rose to $1.05 billion in the first nine months of fiscal 2022. That was up from $830 million in the previous year.

Shares of this dividend stock are trading in favourable territory compared to its industry peers. Capital Power offers a quarterly dividend of $0.58 per share, representing a very solid 4.8% yield.

Worried about a bear market? Target this highly diversified stock with a high yield

Power Corporation (TSX: POW) operates as an international management and holding company that services North America, Europe, and Asia. Shares of this dividend stock have dropped 19% in the year-to-date period.

This dividend stock possesses a very favourable P/E ratio of 11. Moreover, it offers a quarterly dividend of $0.495. That represents a very strong 5.8% yield.

One more super dividend stock to target today

Bridgemarq Real Estate (TSX: BRE) is the fifth and final dividend stock I’d look to target in a bear market. Canada housing has been hit hard by interest rate hikes in 2022. However, I’m still looking to target this realtor company for the long term. Its shares have dropped 21% in 2022.

Shares of this dividend stock last had an attractive P/E ratio of 9.6. Bridgemarq offers a monthly distribution of $0.113 per share, which represents a monster 10% yield.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Keyera. The Motley Fool has a disclosure policy.

More on Dividend Stocks

dividends grow over time
Dividend Stocks

$10,000 Invested at 8% for 20 Years Could Become $46,610

$10,000 doesn’t need perfect timing to become meaningful wealth — it mainly needs time and compounding.

Read more »

Partially complete jigsaw puzzle with scattered missing pieces
Dividend Stocks

How I’m Structuring My $7,000 TFSA for Steady Monthly Payouts

Learn the importance of structuring your portfolio to achieve steady payouts and minimize risk through smart diversification.

Read more »

holding coins in hand for the future
Dividend Stocks

The Best Canadian Dividend Stocks for Passive Income

Given their resilient business models, reliable cash flows, consistent dividend growth, and healthy growth prospects, these three dividend stocks are…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

TFSA Strategy: Turn $25,000 Into $130 in Monthly Passive Income

This TFSA strategy invests $25,000 across two monthly REITs to generate approximately $130 in tax-free passive income every month.

Read more »

dividends grow over time
Dividend Stocks

2 Dividend Stocks to Lock-In Right Now for Long-Term Passive Income

These stocks are off their highs and pay attractive dividends.

Read more »

investor schemes to buy stocks before market notices them
Dividend Stocks

Here’s a 6.6% Dividend Stock Trading Near a 52-Week Low

This Canadian stock currently trades just 2% above its 52-week low while offering a juicy 6.6% annualized dividend yield.

Read more »

stocks climbing green bull market
Dividend Stocks

This 5%-Yielding Dividend Stock Could Turn $20,000 Into $95.64 a Month

$20,000 can turn into nearly $100 a month in dividends, but only if the cash flow behind the yield is…

Read more »

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

This TFSA Setup Could Generate Over $110 a Month

This TFSA setup invests $30,000 across an ETF and two REITs to generate over $110 a month in tax-free income.

Read more »