Most TSX growth stocks plunged sharply in 2022, as concerns about high inflationary pressures, global supply chain disruptions, and growing geopolitical tensions triggered a sharp selloff in growth stocks. On the contrary, the year 2023 has started on a solid note for many beaten-down stocks on the Toronto Stock Exchange, with investors hoping for a near-term recovery. However, continued macroeconomic challenges and the possibility of a looming recession still have the potential to hinder the expected recovery in growth stocks.
In such an uncertain macroeconomic scenario, it makes sense for you to add some quality Canadian dividend stocks with low volatility to your portfolio to keep your risk profile low. Their dividends help investors earn healthy passive income each quarter, usually even if the market falls.
In this article, I’ll talk about two safe TSX dividend stocks you can buy with an investment of as low as $2,000 and hold for the long term. And, as is always the case with dividend investing, you have the flexibility to increase or decrease the amount you earn in passive income from stock dividends by adjusting your invested money according to your risk appetite.
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Mullen Group stock
Mullen Group (TSX: MTL) is an Okotoks-based logistics company with a market cap of $1.3 billion. Despite the broader market weakness, MTL stock inched up by 25.1% in 2022. However, its share prices have seen a minor 2.7% correction in January to trade at $14.15 per share. At this market price, the TSX stock offers an attractive annual dividend yield of 5.1%.
In the first three quarters of 2022, Mullen Group’s total revenue rose 44.6% YoY (year over year) to $1.5 billion, as the demand for its services remained strong. Also, its adjusted earnings for the same three quarters jumped by a solid 83.3% YoY to $0.99 per share with the help of stronger pricing.
In 2023, Mullen Group expects that its current business units might be unable to replicate its strong 2022 results due to the recent softness in freight demand. Nonetheless, its long-term growth outlook remains strong, as Mullen continues pursuing new acquisition opportunities with its strong balance sheet to accelerate growth further and expand market share.
Enbridge stock
The Canadian energy transportation and infrastructure giant Enbridge (TSX: ENB) could be another reliable TSX dividend stock to hold for the long term. It currently has a market cap of $112.5 billion, as its stock trades at $ 55.55 per share with 5% gains in January. ENB stock has an attractive 6.4% dividend yield at the current market price.
Enbridge’s total revenue rose by 14.7% YoY in the first three quarters of 2022. Similarly, its adjusted earnings grew positively by 5.3% YoY, despite cost pressures due to a high-interest rate environment — reflecting underlying strength in its business model.
It’s true that investing in Enbridge stock might not give you some eye-popping returns in the short term like growth stocks. But its predictable cash flows, strengthening profitability, and outstanding track record of consistently increasing dividends make it a very reliable TSX dividend stock to buy for the long-term for passive-income investors.
