The TSX has not been in the best shape since it became rocky in April 2022. As of this writing, the S&P/TSX Composite Index is down by 10.10% year to date. With the Canadian benchmark index hovering close to its 52-week lows, investing in growth stocks amid the market volatility does not seem appealing.
However, not all hope is lost for stock market investors with a long investment horizon. Stocks across the board are suffering substantial share price declines, but it is only a matter of time before the broader market recovers. Until that time, there are assets you can invest in to keep getting returns through reliable shareholder dividends.
Well-capitalized and fundamentally strong businesses can navigate harsh economic environments better than most. While their share prices also decline in such conditions, they are well equipped to come out stronger on the other side.
Today, we will look at two dividend stocks that offer reliable payouts with enough industry tailwinds to see them through the slump.
Brookfield Asset Management
Brookfield Asset Management (TSX: BAM) is one of the two new Brookfield entities trading on the stock market. The $15.74 billion market capitalization company is an asset manager that offers alternative asset management services across several industries, including renewable power and transition, private equity, real estate, credit history, and infrastructure.
In essence, the well-capitalized and well-managed business provides investors with exposure to several verticals. By diversifying across different industries, it reduces the risk to investors.
BAM has more than tripled its fee-bearing capital in the last five years, allowing it to generate steady cash flows regardless of market cycles. As of this writing, Brookfield Asset Management stock trades for $40.19 per share, boasting a juicy 4.31% dividend yield that you can lock into your portfolio today.
Brookfield Renewable Partners
Brookfield Renewable Partners (TSX: BEP.UN) is listed as a separate entity on the stock market but is effectively one of the names under the Brookfield banner.
Supported by one of the largest alternative asset management firms, the $8.57 billion market capitalization company is the owner and operator of a globally diversified portfolio of clean energy assets. The future of the energy industry is green, and Brookfield Renewables is one of the biggest players in this space.
As of this writing, BEP.UN stock trades for $29.66 per share. Down significantly from its all-time highs, it seems too cheap for investors to ignore. While the historic slump in its share prices can be alarming, it is well capitalized enough to make it through to the other side stronger. At current levels, it pays its shareholders at a juicy 6.08% dividend yield that is too good to pass up on.
- We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Brookfield Renewable Partners made the list!
Foolish takeaway
Down from all-time highs, BAM stock and BEP.UN stocks are attractively priced right now and have slightly inflated dividend yields. Adding the shares of these two stocks to your self-directed portfolio can let you capitalize on dividends while the market recovers. Once things start getting better, you can also generate wealth growth through long-term capital gains.
If I had to choose, I would go with Brookfield Renewable Partners for the immense growth potential of its industry and its higher-yielding dividends.
