When building your stock portfolio, you should always aim to keep your risks low. One of the best ways to do that is to add some fundamentally strong dividend stocks to it that can keep delivering passive income, despite temporary market ups and downs.
In this article, I’ll highlight two of the best Canadian dividend stocks you can buy before March 2023 ends.
Canadian Western Bank stock
In March 2023, the shares of regional banks have seen extreme volatility due to the collapse of the California-headquartered Silicon Valley Bank and the New York-based Signature Bank. These bank failures spread the fear of contagion risks across the global financial system, leading to a sharp correction in bank stocks. However, most Canadian banks have a well-diversified business model with well proven financial growth track record and strong financial position. That’s why the recent declines in some quality bank shares could be an opportunity for long-term investors to buy them at a bargain.
Canadian Western Bank (TSX:CWB) could be one such attractive bank stock to consider now that offers an attractive 5.3% annual dividend yield. Despite starting 2023 on a solid note by rising 17% in January, its stock currently trades without any notable year-to-date change due to a recent decline in bank shares. With this, Canadian Western Bank has a market cap of $2.3 billion, as its share prices is around $24 per share.
To give an idea about the underlying strength in its financial growth trends, CWB posted an outstanding 48% revenue growth in five years between its fiscal year 2017 and 2022. During the same period, its adjusted earnings also grew positively by 41% to $3.62 per share, encouraging its management to raise the dividend per share by about 31%.
While economic challenges might temporarily slow the pace of its financial growth in the short term, its long-term financial growth outlook remains solid with its impressive liquidity position, underpinned by a robust balance sheet.
TC Energy stock
No matter how reliable a dividend stock looks at the time of investing, you should always try to diversify your portfolio to minimize the risks. That’s one of the reasons why the second Canadian dividend stock I want to recommend now, TC Energy (TSX:TRP), is from the energy sector. The shares of this Calgary-headquartered energy infrastructure firm currently trade at $52.29 per share with about 3% year-to-date losses. With this, it has a market cap of $53.2 billion and an attractive annualized dividend yield of 7.1%.
TC Energy has nearly three decades of experience in the energy sector and currently has one of the largest natural gas networks in North America. In the five years between 2017 and 2022, the energy firm’s revenue grew positively by 11.4%, and adjusted earnings jumped 39.2%, reflecting its strengthening profitability. To maintain the ongoing strong profitability and financial growth trend intact in the long run, the company plans to significantly expand its presence in renewables and hydro segments. Given its impressive long-term business growth outlook, recent declines in TRP’s stock could be an opportunity to buy it cheap.