Volatility reigns over the stock market, as the S&P/TSX Composite Index dips again. As of this writing, the Canadian benchmark index is down by 5.45% from its 52-week high, experiencing a 1.59% decline between June 2, and June 21, 2023. While the downturn indicates weakness in the broader market, it can be an excellent opportunity for Canadians with a long investment horizon.
Dividend investing is an excellent strategy to capitalize on market downturns. When share prices go down, dividend yields become inflated. Due to the current dip, several dividend stocks have seen their payout yields shoot up. Investors savvy enough to buy on the dip can lock high-yielding dividends into their self-directed portfolios.
That said, not every high-yielding dividend stock is a must-buy in such market environments. Not only should you seek high-yielding dividends. Instead, you must also ensure you buy and hold stocks capable of riding the wave of uncertainty and continue delivering shareholder dividends regularly.
To this end, I have one no-brainer, high-yielding dividend stock that I would buy and hold right now and forever: BCE (TSX:BCE).
Canadian telecom giant
If you want to invest in a business that can keep on paying shareholder dividends, BCE stock can be an excellent asset to consider. The $54.13 billion market capitalization company is Canada’s largest telecom provider and has several mass media assets under its belt. BCE stock is the leading provider of 5G services in the country, and it continues to expand its offerings.
The company has also been expanding its service areas to deliver high-speed internet to all Canadians. The country is large, and there is still a substantial share of the market to capture. As the largest telecom in Canada, BCE is the company well positioned to dominate Canada’s untapped market.
While there are telecom operators in the country competing for the top spot, BCE beats them by a significant margin due to its sheer size.
As BCE continues expanding its infrastructure, it has plenty more shareholder value to unlock in the coming years. Due to its position at the top of a vital industry, it is a stock I would own in all market environments, especially during downturns.
Foolish takeaway
As of this writing, BCE stock trades for $59.33 per share, boasting a juicy 6.52% dividend yield. While regulatory issues and the current economic environment have led to a drop in its advertisement revenue, BCE’s overall revenue is expected to grow this year alongside its free cash flow. As for its media business suffering, BCE has already announced an overhaul to improve efficiency and cut spending.
BCE is not just any dividend stock. It is also a Canadian Dividend Aristocrat that has increased shareholder dividends by at least 5% for the last 15 years. As the business continues to perform well, its dividend hikes will likely continue. Considering the essential nature of its services, BCE stock will be around to see the market recover and experience a boom when the economy improves.
Investing in its shares at current levels can let you lock its high-yielding dividends into your self-directed portfolio. Between its reliable, growing dividends and long-term capital gains, BCE stock can help you generate significant wealth.
