As markets across North America continue to see increased volatility, there’s no question that some of the best stocks to buy right now are high-quality dividend stocks.
Dividend stocks are always some of the best long-term investments you can buy, but they’re especially compelling in the current environment.
First off, many dividend stocks, especially the highest-quality companies, have top-notch operations that can continue to generate strong returns regardless of the stock market and economic landscape.
Furthermore, during periods of heightened volatility when markets trade sideways or even drift lower for extended stretches, the consistent income from dividend payments can continue to drive your portfolio’s growth, even in the absence of capital gains.
Finally, with many economists and analysts still forecasting additional interest rate cuts this year, dividend stocks could see a boost in prices as they become even more attractive to income-seeking investors.
So, if you’re looking to put some of your hard-earned capital to work today, here are two of the smartest dividend stocks to buy right now.
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One of the best residential REITs in Canada
With so much uncertainty in the economy, especially with the impact of tariffs on everyone’s minds, one of the best dividend stocks to buy now is a reliable residential real estate investment trust (REIT) like Canadian Apartment Properties REIT (TSX: CAR.UN).
CAPREIT, as it’s known, owns a massive portfolio of apartment properties across the country and has been strategically repositioning its portfolio to continue growing both its operations and distribution for years to come.
In 2024, it not only disposed of more than $2 billion worth of properties, both in Canada and Europe, but it also acquired more than $650 million worth of new properties, paid down over $400 million in debt and bought back more than $300 million worth of its shares.
These transactions help to strengthen CAPREIT’s balance sheet and lower the risk for investors. However, it also allows CAPREIT to refocus on its core Canadian portfolio and capitalize on future growth opportunities.
Furthermore, CAPREIT continues to capitalize on the strength of the Canadian real estate market, with its average monthly rent (AMR) reaching a record high in the fourth quarter, just shy of $1,650 per month, a significant increase from under $1,350 per month in the fourth quarter of 2021, just three years earlier.
In addition, it has maintained an occupancy rate above 97.5%, demonstrating the consistent demand for its rental units and the resilience of its core portfolio.
Therefore, while you can buy CAPREIT as it trades nearly 25% off its 52-week high, it’s one of the best dividend stocks to buy now.
Not only does it currently offer a yield of more than 3.5%, but that payout is well-supported, with CAPREIT distributing less than 60% of its funds from operations. On top of that, it continues to have compelling long-term growth potential as it constantly looks to upgrade its portfolio and make additional acquisitions.
So, if you’re looking for smart dividend stocks to buy now, a reliable residential REIT like CAPREIT is certainly one of the best to consider.
One of the best high-yield dividend stocks to buy now
In addition to a reliable residential REIT like CAPRIET, another high-quality real estate stock that dividend investors can buy now is CT REIT (TSX: CRT.UN).
CT REIT is one of the best dividend stocks to buy now because Canadian Tire is not only its largest tenant, making up roughly 90% of its revenue, but also its majority owner.
That relationship is key, especially since Canadian Tire is one of the most well-known retailers in the country and should see limited impact from tariffs, helping ensure that CT REIT remains a reliable investment in this environment.
In fact, CT REIT has been one of the most reliable REITs on the TSX for years now. Since going public in 2013, it’s never had a single year where its revenue didn’t increase, including through the pandemic when many of its retail REIT peers struggled.
Therefore, with the REIT trading off its 52-week high and offering a yield of more than 6.3% today, it’s easily one of the best high-yield dividend stocks you can buy right now.
