Dividend stocks continue to be one of the primary investments Canadians look for these days. Growth stocks remain too scary, and even stocks marked in value territory could lose returns before gaining them back.
Even among dividend stocks it can be frightening to think that your shares are going to get worse before they get better. And with the TSX today still down by 11% from 52-week highs, and inflation and interest rates on the rise, that looks likely in the near future.
Yet as Warren Buffett has said in the past, “Be fearful when others are greedy and greedy when others are fearful.” With that in mind, here are three stable dividend stocks it’s time to get greedy over.
TC Energy Stock
TC Energy (TSX: TRP) is one of the top dividend stocks to consider a deal these days. It’s a Dividend Aristocrat with over five years of dividend increases, with management remaining committed to more dividend increases in the future. The company has exposure to assets in both the United States and Canada, a strong balance sheet, and a long history of posting positive earnings and returns.
Shares, however, are down 22% in the last year. That’s despite beating earnings estimates and reporting strong reports over the last few quarters. This is why it’s one of the top dividend stocks that remains a deal right now.
TC Energy stock offers a 6.93% yield as of writing, with dividends increasing at a compound annual growth rate (CAGR) of 7.77% over the last decade. That’s likely to continue as we’ve seen in the past, so it’s a solid deal on the TSX today.
Scotiabank
Another deal among dividend stocks today is Bank of Nova Scotia (TSX: BNS). As one of the Big Six banks, it continues to have provisions for loan losses, and has remained strong, despite all this economic turmoil. The bank has a history of very slow but very steady growth, which has led risk-averse investors towards the stock.
Scotiabank stock is also a Dividend Aristocrat, with dividends increasing over the last five years. As a bank, the company remains committed to those increases and offers exposure to Canadian banking as well as growth in South American emerging markets.
Shares are down 16% in the last year, due to missing earnings estimates along with the other Canadian banks with loan losses eating up provisions. However, the bank has proven it can return to normalcy before and is likely to do so again. It now offers a 6.7% dividend yield as of writing, with a CAGR of 5.55% in the last decade. Further, it trades at 9.54 times earnings, the cheapest of the Big Six banks.
Bridgemarq REIT
Finally, for something a little different, investors may want to consider dividend deal Bridgemarq REIT (TSX: BRE). The company provides real estate services to agents and brokers, providing a long history of dividend payments as well. The company is more Canadian focused, and currently is a bit on the pricey side compared to peers, but still remains a top dividend stock to consider.
Bridgemarq REIT currently offers a 9.16% dividend yield, making it the highest among those on this list. However, it does pose more risk in terms of when returns will come your way. Given its exposure to the current housing industry, that could be a while.
Even so, the stock remains a strong choice among dividend stocks, as shares remain up 7% in the last year as of writing. It has a dividend CAGR of 2% in the last decade, providing slow but steady growth for investors to consider on the TSX today.
