3 Dividend Stocks I’d Buy Before a Bull Market

These undervalued dividend stocks should be picked up right now before a bull market comes your way and you lose out on ultra-high yields.

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It’s still a great time to pick up dividend stocks for investors seeking funds during this bear market. But don’t forget that a bull market always comes after a bear market or recession. That means right now is the perfect time to pick up solid dividend stocks before a bull market comes down.

I do say solid dividend stocks, which means companies that are due to recover in the bull market. Not those that just offer high yields, with nothing else. So, consider these three when talking to your financial advisor.

NorthWest REIT

NorthWest Healthcare Properties REIT (TSX:NWH.UN) remains a strong buy even after earnings that came in with nothing too exciting to offer. The REIT reported it continued to have a 97% occupancy rate as well as a 13.6-year average lease agreement.

Yet NorthWest REIT also continues to move forward with a joint venture in the United Kingdom, one it expects to be up and running by June 30. So, now could be a great time to pick it up with your other dividend stocks for a recovery in the next few months.

NorthWest REIT is now one of the dividend stocks offering a 9.91% dividend yield, with shares down 37% in the last year, as of writing. Should it recover to former 52-week highs, that would be a potential upside of 69% as of writing.

iShares Monthly Income ETF

If you don’t want to sink your cash into just one stock, that’s totally fair in a bear market. Which is why now is a great time to buy an exchange-traded fund (ETF) that focuses on dividend stocks. iShares Canadian Financial Monthly Income ETF (TSX:FIE) is therefore the perfect option for investors on the worried side ahead of a bull market.

This is also one of the dividend stocks providing some protection for a quick recovery, with shares down just 7.7% in the last year. It currently offers a 7.07% dividend yield as well, with holdings mainly in financial institutions with some real estate. It also offers global exposure, as the ETF invests in companies outside Canada as well.

Should shares recover soon, you could be getting a steal with dividend stocks like this one. Should the stock recover to former 52-week highs, that would be a potential upside of about 14% as of writing.


Both of these dividend stocks offer stable passive income because they’re receiving stable passive income. But what about Canadian banks? Many investors may worry that Canadian banks are going to drop just as American ones have. However, there is far less competition here where Canadian banks enjoy an oligopoly. Even so, many Canadian banks have a lot of exposure in the United States and could drop because of it.

Not Bank of Nova Scotia (TSX:BNS). Scotiabank stock offers security, as its investments outside of Canada mainly focus on Central and Latin America. This focus on emerging markets has also provided slow and steady climbs in share price, rather than climbs and falls.

Scotiabank stock now offers a dividend yield at 6.19%, with shares down 18% in the last year. It should recover quickly, however, as it has during the last few recessions. So, it currently has a potential upside of 29% to reach former 52-week highs.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has positions in NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool recommends Bank Of Nova Scotia and NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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