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!

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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.

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.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fiera Capital. The Motley Fool has a disclosure policy.

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