As macroeconomic uncertainties continue in 2023, investors have run into extended stock market turmoil with unpredictable ups and downs. Market volatility continues to puzzle even experienced investors. In this choppy market, exploring alternative investment strategies that can help you make consistent returns becomes increasingly important.
That said, dividend investing could be one of the best strategies you can follow to keep generating reliable passive income even in a difficult market environment. In this article, I’ll highlight two top TSX dividend stocks you can buy at a bargain right now to see your invested wealth keep growing even during these uncertain times.
Laurentian Bank stock
As the broader market turmoil and recent U.S. regional banking crisis have driven the Canadian financial sector down lately, Laurentian Bank of Canada (TSX:LB) could be worth considering for investors seeking reliable passive income. The shares of this Montréal-based lender have seen more than 7% value erosion in the last three months to currently trade at $31.94 per share with about $1.4 billion in market cap. At the current market price, LB stock offers an impressive 5.9% annualized dividend yield.
Laurentian Bank recently announced largely positive quarterly results that triggered a buying spree in its stock, taking it up by 4.5% on June 1. While most large Canadian banks failed to meet Street analysts’ expectations in the latest quarter, LB continued to beat earnings estimates for the third consecutive quarter. In the quarter ended in April, its revenue fell slightly on a year-over-year basis to $257.2 million.
On the positive side, despite an increase in its provision for credit losses, the bank’s adjusted quarterly net profit of $51.7 million exceeded analysts’ expectation of $48.9 million. This beat was due mainly to higher interest income from commercial loans.
Also, Laurentian Bank continued to strengthen its liquidity position and capital level in the last quarter by optimizing its funding profile. Its main focus on commercial banking and institutional customers gives it the ability to continue rewarding its investors with healthy dividends even in difficult economic times, making it an attractive stock to earn passive income in Canada.
Pembina Pipeline stock
Pembina Pipeline (TSX:PPL) could be another cheap dividend stock at the current market price, especially after it has fallen sharply in recent months due mainly to rising fears about slowing global economic growth. It currently has a market cap of $22.6 billion as its stock trades at $41.51 per share after losing nearly 10% of its value year to date. At the current market price, PPL stock offers a 6.4% annualized dividend yield.
This Canadian energy infrastructure and midstream services provider has more than six decades of experience in the North American energy industry. In the five years from 2017 to 2022, Pembina’s revenue rose nearly 115% to $11.6 billion, while its adjusted earnings jumped 196% to $5.12 per share. The company’s ongoing efforts to expand its global presence to geographically diversify its revenue streams could help it reduce its risk profile further in the coming years, making this dividend stock worth considering on the dip right now.