Although many expected a recession to materialize by now, the uncertainty in the stock market continues to persist. If anything, it’s even higher now due to all the mixed signals we’re getting. That’s why some of the top stocks to buy in August are blue-chip dividend stocks.
Blue-chip dividend stocks are ideal, because they are stocks you can plan to buy and hold for the long term due to their well-established businesses and track records of long-term growth.
However, they’re also ideal to buy in this market environment, because many of these blue-chip stocks are recession resistant due to their essential operations and the size and scope of their businesses all over the country and beyond.
So, if you’re looking for some top picks to buy in August, here are three blue-chip dividend stocks that can help shore up your portfolio, return you an attractive dividend and offer considerable long-term growth potential.
An impressive utility stock to help shore up your portfolio
If you’re looking for a safe and reliable blue-chip dividend stock to buy now, a top utility stock like Emera (TSX: EMA) is one of the best.
Emera is an ideal investment because utility stocks are some of the safest and most predictable investments you can buy. However, in addition to its safety and stability, Emera is well positioned to benefit from the growing global trend of moving toward cleaner energy and reduced carbon emissions.
This helps add attractive long-term growth potential to a stock that’s one of the most reliable investments in Canada.
Already, Emera is in the midst of a multi-year growth plan where it expects to grow its rate base at a compounded annual growth rate of 7-8% and its dividend by 4-5% annually through 2025.
So, with the stock now trading near the bottom of its 52-week range and offering a dividend yield of more than 5.3%, it’s easily one of the best blue-chip stocks to buy now.
A top blue-chip dividend stock to buy in August and hold for years
In addition to Emera, another excellent choice for investors today is Telus (TSX: T), the massive telecommunications stock.
In an age where connectivity is paramount, Telus has consistently made strides in expanding its network infrastructure and ensuring top-tier services for its customer base.
This makes it both highly defensive since communications are so important and gives it a tonne of long-term growth potential, especially as new technology, such as 5G, continues to create new demand for wireless and wireline services.
So, given Telus’s recession-resistant operations and constantly expanding operations, it’s no surprise that the blue-chip dividend stock is constantly increasing its dividend payments each year, making it one of the best stocks to buy now.
Not only has it increased its dividend for 19 consecutive years now, the 19th-longest dividend-growth streak of any Canadian stock, but Telus is also trading well off its highs and now offers a dividend yield of more than 6.2%.
So, if you’re looking for a top blue-chip dividend stock to buy now, Telus is certainly one of the top investments to consider.
One of the best bank stocks in Canada
Finally, many of the big Canadian banks make excellent blue-chip dividend stocks to buy. One of the very best big bank stocks, though, is Royal Bank of Canada (TSX: RY), the largest bank by market cap.
While many banks have been struggling over the last year, RBC’s third-quarter earnings of its fiscal 2023, which it just released this morning, actually came in above expectations.
RBC’s adjusted earnings per share came in at $2.84, which was up 11% year over year and beat consensus expectations of $2.70. The impressive results were thanks to a combination of loan growth, higher net interest income, and lower-than-expected provisions for credit losses.
These results are an excellent reminder of what a high-quality, blue-chip dividend stock RBC is and why it’s one of the best to buy now.
In fact, Royal Bank’s dividend-growth streak is now at 12 years, and its current dividend yield has climbed to more than 4.1% as the stock has sold off in the current market environment. So, if you’re looking for stocks to buy now, there’s no doubt RBC is one of the best.
