2 Top TSX Dividend Stocks to Buy in January 2023

Value? Check. Market-beating performance? Check. Some of the highest dividend yields on the TSX? Double check!

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published January 22, 2023 11:15 am EST

Everyone and their third cousin continue to seek out dividend stocks to buy on the TSX today. It’s clear why. A potential recession is looming on the horizon, and even should we come out of 2023 back in the black, you certainly want some kind of cash coming in. And that’s usually through dividend stocks when it comes to investing.

Today, I’m going to cover two of the best dividend stocks money can buy this month. Both offer incredibly high yields, true. However, they also offer valuable share prices. Oh, and did I mention both pay out each and every month? Let’s get right to it.

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Fiera Capital

Fiera Capital (TSX:FSZ) shares have actually been doing pretty well, all this considered. The TSX is down about 4.5% in the last year compared to Fiera stock shares down just 2.3% as of writing. So, you get market-beating performance from this among your other dividend stocks.

That market-beating performance comes from a solid management team knowing the best value and growth companies to invest in. Because of this, the company continues to be able to increase its dividend year after year.

Right now, investors can lock up a dividend yield of 9.71% as of writing! And that’s while shares trade at just 16.73 times earnings, and 2.53 times book value. And despite shares being down, long-term investors will see that Fiera stock is a great buy. Shares are up 124% in the last decade, a compound annual growth rate (CAGR) of 8.41%.

Slate Grocery REIT

Another solid choice I would make right now in terms of dividend stocks is Slate Grocery REIT (TSX:SGR.UN). Slate stock is solid because of where it’s chosen to focus its attention: grocery chains. These chains are located across the United States, bringing in significant revenue even during the pandemic.

Because of this, the company has managed to continue expanding, even during a downturn! So, if you’re looking for long-term protection, I would certainly consider Slate stock. Meanwhile, the stock is valuable, yet still trades up 14.73%. So, you may just end up with some major protection, even during a recession from this stock.

Yet we’re here because it’s one of the best dividend stocks out there. And that’s because you can lock up a yield at 7.26% as of writing, while trading at just 6.04 times earnings. And in the last five years, Slate has grown 100% for a CAGR of 14.84% as of writing.

Bottom line

Dividend stocks can be a lifeline during a market correction and indeed a recession. What investors should look for are companies that will continue to do well even during a downturn. Fiera stock and Slate stock have the history to look back on for investors to consider. Plus, each has a major dividend yield you can lock up now. So, if you’re looking for only two dividend stocks to help you through a trying time, these are the two monthly passive-income stocks I would buy on the TSX today.