It’s a really hard time to get in on the market for young investors. After several years in a row of market growth, we’re now entering a recession by the summer. And young investors, frankly, don’t have all that much money to put aside. But they do have something else: time. That is why dividend stocks can be the best buys for them.
If you’re a young investor seeking out dividend stocks, there are a few I’d recommend above the rest in April 2023. Let’s get right to them.
BMO stock
While other banks have come under fire for their expansion, Bank of Montreal (TSX: BMO) continues to do well. BMO stock has been the top performer among the major Canadian banks, with shares down 17% in the last year.
Yes, that’s quite a lot. And, I’m not going to lie, financial institutions like BMO stock could certainly fall further. But if you want a company that’s going to do well long term, using time to your advantage, I would certainly consider it.
BMO stock currently trades at a valuable 7.6 times earnings as of writing, with a dividend yield at 4.72% on the TSX today. It’s been expanding throughout the United States, purchased Air Miles reward program recently and has more growth on the way. With shares down now, it’s the perfect time to buy, as those shares are still up 93.42% in the last decade alone.
Brookfield Renewable
Then there are stocks that are doing well, and perhaps aren’t in value territory, but are still a buy on the TSX today in April 2023. That includes Brookfield Renewable Partners (TSX: BEP.UN), which is having a moment in the sun after falling for the last two years.
Brookfield stock continues to climb higher as the company acquires and partners with other renewable energy companies. It’s seen shares grow 15.5% year to date, yet those shares are still down 17% in the last year. So, there is certainly room to run.
And, of course, Brookfield stock offers a dividend yield currently at 4.45% on the TSX today. That dividend continues to remain steady and strong, even as the market remains volatile. What’s more, it’s one of the few renewable energy companies that has decades of experience behind it. With shares down, I’d pick it up and perhaps bring in another decade of growth at 153%, as with the last decade.
SmartCentres REIT
Another strong investment for young investors to consider on the TSX is SmartCentres REIT (TSX: SRU.UN). Smart Centres again isn’t doing so well right now, but think long term. While the company may be in the retail business, partnering with companies for its many properties, it’s expanding as well.
This expansion includes its SmartLiving branch. This will include condos, apartments, and even senior residences for the next few years. And that’s a smart investment, given the aging baby boomer population. And with the company already invested in industrial properties as well, it certainly is becoming a solid investment for those seeking diversified property income.
What’s more, you can get an incredible 7.01% dividend yield as of writing from this dividend stock. Furthermore, it trades at 8.72 times earnings, with shares down 19% in the last year alone. So, this stock could see a major rebound even in just 2023.
