3 Dividend Stocks to Buy for Income (And Then Hold for Growth)

A recession may arrive, but these three dividend stocks offer stable income to see you through it, and growth beyond 2023.

Amy Legate-Wolfe

Author Bio 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. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy 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. Social Media 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 March 30, 2023 1:30 pm EDT

Growth and income. It’s the perfect pair when it comes to investing. You get paid to wait, and can buy on a downturn and see your shares surge in the years to come. Well, today, I have exactly three of these dividend stocks for you.

Without further ado, let’s get into it.

A plant grows from coins. — Source: Getty Images

Brookfield Infrastructure Partners

Infrastructure is a necessary part of our present and future. Luckily, Brookfield Infrastructure Partners LP (TSX: BIP.UN) invests in that essential service. If you’re looking for stable income, it’s definitely a place to look on the TSX today.

Brookfield stock invests in assets focusing on utilities, energy infrastructure, and more. Yet, the thing is, it doesn’t trade in value territory as of writing. Even so, shares are down 16.5% in the last year alone, offering you value in that sense.

Meanwhile, you can bring in a dividend yield at 4.7% as of writing. That’s certainly something to consider as the stock eventually will recover. And when that happens, it will be a strong growth stock from here. Shares are up up 38% in the last five years alone.

Hydro One

While it’s a newer company, Hydro One (TSX: H) has proven as essential, and frankly is just getting started. It’s one of the dividend stocks I would consider as it currently powers most of Ontario, the most populated province in the country.

Yet Hydro One continues to expand, and the need for renewable energy is certainly part of this expansion. I wouldn’t be surprised to see it power most of Canada in the future. Therefore, it’s certainly a good time to invest in the stock on the TSX today.

Again, it may not be in value territory, but shares may offer some protection as they’re up 13% in the last year alone. Meanwhile, you can bring in a dividend yield at 2.98% as of writing. Hydro One stock is up 75% in the last five years.

CIBC stock

Yes, I know, a dreaded Big Six Bank. However, it may actually be an excellent time to pick up a stock like Canadian Imperial Bank of Commerce (TSX: CM). After all, it has provisions for loan losses to get it through a recession. On the other side, it will be able to come out strong and continue its path of strong customer service and client retention.

While shares are down 27% in the last year alone, it’s simply a strong Canadian bank that any investor hoping to hold for the next decade should consider. Especially as you can bring in the highest dividend among the banks at a 5.99% yield as of writing!

Meanwhile, look to past performance on the market to see what the future might hold. CIBC stock recovered to pre-fall prices within a year of hitting 52-week lows. So you could be getting a steal on the share price, and passive income from dividend stocks like this one that will last you decades. Shares are on par with where they were five years ago thanks to the recent drop.