When it comes to choosing dividend stocks, you want companies that are going to keep paying dividends. Honestly, right now, that is a huge concern. With a potential recession looming closer, there is real concern over companies cutting dividends to make ends meet.
With that in mind, I would understand if you’re one of the many investors who first worried about returns and now worry about a dividend cut as well! At least you had that going for you, right?
Well, I’m here to tell you these six (yes six) dividend stocks will certainly help you sleep at night. Don’t roll around. You can rest easy with these six in your portfolio.
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Go banking
The Canadian banks are some of the best companies that I would not only continue to hold in my investment account right now. I also want to continue investing in them. These banks are hitting 52-week lows in some cases. But if you look to the past, the Big Six Banks tend to recover to pre-fall prices within a year of hitting those lows.
Yet of all the six, I would currently choose Toronto Dominion Bank (TSX:TD), Royal Bank of Canada, (TSX:RY) and Bank of Montreal (TSX:BMO) primarily. These three are solid companies that also have substantial exposure to other markets. Further, they’re all growing. TD and BMO continue to expand in the United States. Royal Bank has been doing so as well, but also within emerging markets.
And, of course, these three have solid dividend stocks and each are Dividend Aristocrats. That means even through the Great Recession, these companies were able to increase their dividends year after year for over 25 years.
TD stock offers a dividend yield at 4.74%, with BMO stock at 4.89% and Royal Bank stock 3.98% as of writing. So, these three would certainly continue to pay you big bucks while you buy them at these valuable prices.
Turn to essentials
Banks are pretty essential, yet they’re not doing well. However, there are essential companies out there that continue to do well no matter what the market is doing. Essentials that include basic materials which support our daily life.
The three in this sector I would look to are Nutrien (TSX:NTR), Teck Resources (TSX:TECK.B), and NorthWest Healthcare Properties REIT (TSX:NWH.UN). Nutrien stock provides crop nutrients to support the growth of food, and continues to merge the fractured crop nutrient industry. Teck stock focuses on basic materials such as silver and copper, but also fertilizer for some diversified essentials.
Finally, NorthWest stock offers growth from its diversified set of healthcare properties located around the world. Healthcare also isn’t going anywhere, so you can look forward to continued income from dividend stocks in this sector as well.
All three of these dividend stocks are down, but all three have substantial, strong dividends that won’t be gone anytime soon. Nutrien stock holds a 2.82% yield, Teck stock 2.01%, and NorthWest stock a whopping 8.59%.
With these six dividend stocks, not only will you receive passive income that helps you rest easy. You can look forward to these companies recovering quickly even after a recession.
