3 Reliable Dividend Stocks to Lean on in Uncertain Times

These three dividend stocks with stable cash flows can strengthen your portfolio in uncertain times.

| More on:
worry concern

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Canadian equity markets performed well last month, with the S&P/TSX Composite Index rising 6.2%. Falling interest rates and optimism over Donald Trump’s pro-growth policies have boosted investors’ optimism, driving the equity markets. Also, Canada’s third-quarter GDP (gross domestic product) declined from 2.1% in the second quarter to 1%, raising the hopes of steep rate cuts in December, thus supporting stock price growth.

However, the concerns over global economic slowdown and geopolitical tensions persist. So, if you are also worried about these uncertainties and the substantial increase in equity markets this year, here are three reliable dividend stocks you can buy to strengthen your portfolios. These three stocks are less susceptible to market volatility, given their stable cash flows and consistent dividend growth.

Enbridge

Enbridge (TSX:ENB) has been paying dividends uninterrupted for 69 years and has increased its dividends for the previous 29 years, thus making it a top dividend stock to have in your portfolio. The diversified energy infrastructure company earns around 98% of its cash flows from long-term contracts, thus shielding its financials from market volatility. Around 80% of its EBITDA (earnings before interest, tax, depreciation, and amortization) is inflation-indexed. So, it generates stable and predictable cash flows, thus allowing it to raise its dividends at an annualized rate of 10% for the last 29 years, while its forward dividend yield stands at 6.04%.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Moreover, Enbridge has strengthened its natural gas utility business by acquiring three assets in the United States, making it the largest natural gas utility asset in North America. The company is progressing with its $28 billion secured capital program, with already making capital expenditure of $5 billion in the first three quarters. These investments could boost its financials and cash flows, thus facilitating its future dividend growth. Its financial position looks healthy, with available liquidity of $17.1 billion at the end of the third quarter.

Fortis

With 51 years of consecutive dividend growth, Fortis (TSX:FTS) is my second pick. The natural gas and electric utility company operates around 10 assets in Canada, the United States, and the Caribbean, serving 3.5 million customers. With 93% of assets involved in low-risk and regulated transmission and distribution business, the company generates stable financials irrespective of the broader market conditions, thus allowing it to raise its dividends consistently. With the quarterly dividend of $0.915/share, its forward yield stands at 3.93%.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Meanwhile, Fortis is investing around $26 billion from 2025 to 2029, with 99% of these investments in regulated assets. These investments could expand its rate base at 6.5% CAGR (compound annual growth rate). Along with these growth initiatives, favourable rate revisions and improving operating efficiencies could boost its financials in the coming years. The falling interest rates could also lower its interest expenses, thus improving its profitability. Considering all these factors, I believe Fortis would be an excellent buy in an uncertain outlook.

Bank of Nova Scotia

Bank of Nova Scotia (TSX:BNS) is another stock that has consistently rewarded its shareholders by paying dividends. It has been paying dividends since 1833. Also, it has raised its quarterly dividends at an annualized rate of 5.75% for the last 10 years, with its forward yield currently at 5.31%.

Created with Highcharts 11.4.3Bank Of Nova Scotia PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Meanwhile, falling interest rates could boost economic activities, driving credit demand. Lower interest rates could also lead to lower provision for credit losses, improving profitability. Meanwhile, BNS is enjoying deposit growth and net margin expansion. Its solid balance sheet, positive operating leverage, and productivity initiatives could continue to drive its financials in the coming quarters.

Focusing on deploying its capital in priority markets, BNS has also made a strategic investment in KeyCorp, which could boost its near-term profitability while further strengthening its United States business. Despite the healthy buying in the stock, BNS trades at an attractive next-12-month price-to-earnings multiple of 14, making it an excellent buy.

Should you invest $1,000 in Bank of Nova Scotia right now?

Before you buy stock in Bank of Nova Scotia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Bank of Nova Scotia wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia, Enbridge, and Fortis. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."
Dividend Stocks

I’d Put $15,000 in These 3 Dividend-Growth Champions for Increasing Income Potential

Want to offset some volatility? Here are three defensive dividend-growth champions that can generate a juicy yield right now.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $7,000

Discover how the Tax-Free Savings Account can be your golden goose for generating cash without losing your investment.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Invest $10,000 in Canadian Value Stocks for Monthly Dividend Income

A $10,000-diversified portfolio of value stocks focusing on dividend safety, yield, growth, and payment schedules can provide a reliable source…

Read more »

a person watches a downward arrow crash through the floor
Dividend Stocks

Is This Correction Your Chance? Top 4 Canadian Dividend Stocks on Sale

Stocks may be down, but now is your chance to get some of these top dividend stocks on sale.

Read more »

Confused person shrugging
Dividend Stocks

Where to Invest $2,500 in the TSX Today

These TSX stocks offer attractive dividends and a shot at decent upside on a rebound.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Invest $25,000 in These Dividend Stocks for $1,956.66 in Annual Passive Income

Dividends stocks can make a huge difference, even if shares don't move an inch. And these might be the best.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

Got $5,000? 5 Income Stocks to Buy and Hold Forever

These income stocks have a solid dividend-payout history that can help you earn stress-free passive income.

Read more »

grow money, wealth build
Dividend Stocks

Why I’d Invest $10,000 in This Undervalued Dividend-Growth Stock for Decades of Income

This undervalued dividend stock offers a high yield of over 8% and can help you earn more than $200 in…

Read more »