As inflation persists in the high-interest rate environment, Canadian investors are increasingly worried about a stock market crash. While a full-blown market crash might not occur, investing when the market is weak is intimidating. Fortunately, there are ways to keep your money in the market and grow your wealth, even when the market is weak. This is where investing in reliable Canadian dividend stocks comes in.
Publicly traded companies paying a portion of profits to investors are called dividend stocks. Those that keep growing dividends for several years consecutively are classified as Canadian Dividend Aristocrats. Not only do the aristocrats pay shareholders regularly, they keep increasing the payouts each year, allowing shareholders to see their returns increase.
Today, I will discuss three resilient Canadian Dividend Aristocrats you can consider adding to your self-directed portfolio for the long run.
goeasy
A standout growth stock, goeasy Ltd. (TSX: GSY) might be a surprising entry here. Growing at an impressive pace, it has increased its revenue by almost 70% in the last three years, growing its normalized earnings per share (EPS) by over 120% in that time. The company has managed its loan book well over the years, keeping its charge-off rates low.
The $1.9 billion market capitalization company is a financial services provider offering loans to subprime borrowers who cannot secure loans from traditional lenders. From helping people finance furniture and electronics to home loans, goeasy offers a crucial service.
GSY stock has grown its dividends at a compounded annual growth rate (CAGR) of around 31% over the last nine years. As of this writing, it trades for $111.97 per share and boasts a 3.43% dividend yield.
Intact Financial
Intact Financial Corp. (TSX: IFC) is another excellent Canadian Dividend Aristocrat to consider for your self-directed portfolio. The Toronto-based $35 billion market capitalization company offers casualty and property insurance products to customers in the US, the UK, Canada, and several other international markets.
In its first-quarter fiscal 2023, operating direct premiums written grew by 4% year over year, and its underwriting income jumped by 15%.
As of this writing, Intact Financial stock trades for $199.75 per share and boasts a 2.20% dividend yield. Intact Financial stock has grown its shareholder dividends for the last 18 consecutive years. Despite the broader market weakness, IFC stock is managing to deliver good performance and can be a good investment for passive income seekers.
Canadian Natural Resources
Canadian Natural Resources Ltd. (TSX: CNQ) is an $80 billion market capitalization giant in the Canadian energy industry that can be a valuable addition to any self-directed portfolio. A resilient business, CNRL is the country’s largest oil and natural gas company.
Granted, commodity stocks in the energy sector can be volatile due to rapid oil price changes. However, CNRL has managed to weather the volatility well over the years.
CNRL has grown its shareholder dividends at a 20% CAGR for 23 consecutive years. The long dividend growth streak reflects its strong balance sheet, which allows management to purchase high-quality assets at a bargain during market downturns.
Its mix of oil and natural gas production provides the company with a balanced revenue stream. With this cash flow, Canadian Natural Resources can offset losses when oil prices are down and profit significantly when they soar.
As of this writing, CNRL stock trades for $72.22 per share, boasting a 4.98% dividend yield.
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Foolish takeaway
When it comes to dividend investing, you can rarely go wrong with Canadian Dividend Aristocrats. That said, even the most resilient stocks are not immune to the effects of macroeconomic factors. When investing, you must be careful how much you allocate to any investment.
All three dividend stocks can be excellent income-generating assets. If I were to choose one, I would invest in Canadian Natural Resources stock for its lengthy dividend growth streak, strong balance sheet, and a balanced revenue stream that has given it the liquidity necessary to weather harsh economic environments.
