Over the last year, as uncertainty has picked up, Canadian dividend stocks have quickly become some of the best stocks to buy.
We’ve already seen tonnes of volatility, as interest rates have begun to rise over the last year and a half, and we could see even more if we get a recession in the second half of the year, as many expect.
Therefore, it makes sense that so many investors are looking to shore up their portfolios to protect their capital and reduce their exposure to the market’s volatility.
That’s why dividend stocks are some of the best investments that Canadians can buy now. The majority of dividend stocks have well-established businesses, which is what allows them to pay a dividend in the first place.
Therefore, when you focus on finding these well-established businesses that operate in defensive industries, not only will they be less volatile than the market, helping to protect your capital, but they can also provide impressive and consistently growing passive income.
If you’re one of those investors looking for low-risk, high-quality dividend stocks to buy today, here are two of the best to consider adding to your portfolio.
One of the very best Canadian dividend stocks you can buy
If you’re looking for top Canadian dividend stocks with low volatility to buy in this environment, one of the best stocks to consider is Fortis (TSX:FTS).
Fortis is a leader in the North American regulated electric and gas utility industry. The company operates in an industry that provides essential services to customers across Canada, the U.S., and the Caribbean.
Therefore, because it’s a utility stock that provides essential services, and because it’s an industry that’s regulated by governments, its revenues are relatively stable. Even during economic downturns, people and businesses still need electricity and gas.
Therefore, it’s a stock that is not very volatile since it’s so reliable. Utility stocks, in general, are low-volatility stocks, but to double check a company you’re looking at can mitigate the fluctuations in the market, it’s essential to check the stock’s beta.
A beta below one means that the stock will be less volatile than the broader market. And right now, Fortis has a beta of just 0.20.
Furthermore, because the Canadian utility stock is earning consistent revenue and cash flow, it leads to an ultra-safe dividend, which the company increases each year.
For 49 consecutive years now, Fortis has increased its dividend, showing just how reliable it is and why it’s such an excellent company to buy and hold for the long term.
And today, its dividend has a yield of more than 4%, making it one of the best Canadian dividend stocks you can buy in this environment.
A top telecom stock with a 6.6% yield
In addition to Fortis, another impressive Canadian dividend stock to consider in this environment is BCE (TSX:BCE).
BCE is another excellent Canadian dividend stock to buy now, as it’s a massive telecommunications company with a market cap of over $53 billion that provides a range of communication services to consumer, residential, business, and government customers.
It’s a massive player in an industry that has a tonne of similarities to utilities. First off, telecommunications are considered essential, especially in the modern digital age, where internet access and mobile connectivity are critical for everyday life and work.
Furthermore, BCE’s diversified services and substantial subscriber base help create consistent revenue streams. And because it owns long-life assets, it’s also constantly generating tonnes of cash flow, which helps make it another Canadian Dividend Aristocrat, much like Fortis.
Plus, BCE also has an impressive dividend-growth streak of 14 straight years, and today it offers an unbelievable dividend yield of roughly 6.6%. And on top of that attractive yield, its beta is just 0.51, showing it’s significantly less volatile than the broader market.
So, if you’re looking to shore up your portfolio and buy some of the best Canadian dividend stocks today, BCE is certainly a top choice you’ll want to add to your watch list.
