When there is so much uncertainty in markets, and many believe the economy is on the brink of a recession, investors want to know that they can have confidence in the stocks they own. That’s why it’s essential to own some of the safest dividend stocks in Canada.
When you own a high-quality dividend stock, not only can you be confident that the dividend will remain robust and, in many cases, continue to grow from year to year, but often these stocks are also some of the least volatile companies on the market.
Therefore, buying some of the safest stocks in Canada is crucial to helping shore up your portfolio. Plus, many of these stocks are high-quality core portfolio stocks that you can hold for years and potentially decades to come.
So, if you’re looking for reliable stocks to buy now, here are three of the best to consider now.
One of the oldest dividend aristocrat stocks in Canada
If you’re looking for some of the safest dividend stocks to add to your portfolio, an excellent place to start is the utility sector, where many stocks, such as Fortis (TSX:FTS), are highly defensive.
Because the services that Fortis offers are so essential to both residential and commercial customers, and the industry is regulated by governments, much of its revenue, as well as its earnings, is highly predictable.
This makes Fortis one of the least volatile stocks on the market, and also helps the company to constantly increase its dividend each year while knowing that the dividend is sustainable.
In fact, Fortis has increased its dividend for an incredible 49 straight years now. So, not only has it proven to be one of the safest dividend stocks in Canada, but it’s also one of the top dividend growth stocks you can buy.
Therefore, not only is Fortis an ideal stock to buy in this environment, but it’s one that investors can plan to hold in their portfolios for years to come.
One of the safest dividend stocks in the real estate sector
Real estate is another sector where investors can find many of the safest dividend stocks in Canada. Right now, Granite REIT (TSX:GRT.UN) trades at such a significant discount it’s one of the top stocks that investors can buy.
Granite is a massive industrial REIT with properties in Canada and the U.S. as well as Europe. It’s well diversified. But even more importantly, it has been capitalizing on the significant increase in demand for warehouse space that we’ve seen in recent years, making it one of the top stocks to buy now.
In the last three years alone, its revenue has increased by over 66%. Meanwhile, its adjusted funds from operations (AFFO) have increased by over 52% during that stretch.
And considering that its current annual distribution of $3.20 is only 79% of its AFFO in 2022 and expected to be 72% of its AFFO in 2023, Granite REIT is one of the safest dividend stocks in Canada.
Therefore, with the REIT trading nearly 20% off its 52-week high, Granite is one of the top stocks that dividend investors can buy today.
A top Canadian blue-chip stock
Lastly, a stock that has a slightly lower dividend yield but also offers consistent dividend growth each year is Nutrien (TSX:NTR), the massive agricultural stock. This is a company that you can buy and hold for years to come
Nutrien is an intriguing business because it has such a dominant position in an industry that’s essential. It’s one of the largest producers in the world of key chemical ingredients needed for fertilizer. Plus, the stock has vertically integrated operations that also include a retail network of more than 2,000 stores.
So, it’s no surprise that Nutrien is consistently increasing its dividend each year, especially with all the free cash flow that it constantly earns. And today, with its dividend paying out just 16% of the normalized earnings per share that Nutrien reported in 2022, it’s certainly one of the safest dividend stocks in Canada.
So if you’re looking for a high-quality stock that you can buy now and have confidence owning in both the short and long run, Nutrien is a top choice for any investor.
