As the stock market looks to dip further going into April, investors may wish to look to some of the dividend (growth) stocks that can stabilize a portfolio. Undoubtedly, now isn’t a great time to be reaching for ultra-high yields. That said, I think that some of the more battered names with reasonably well-covered dividend payouts stand out as a deep-value bargain at current levels.
Sure, such names could be at risk of further downside as the market-wide rout continues. But given the band-aid has arguably already been ripped off, let’s just say I wouldn’t be all too surprised if the following beaten-down dividend stocks don’t crumble alongside the market come the next leg lower. In any case, let’s have a closer look at two Canadian gems that could prove outstanding bargains while they’re still off significantly from their all-time highs.
Image source: Getty Images
BCE
First, we have shares of BCE (TSX: BCE), which are currently trading for $32 and change per share. With the stock back on the retreat in recent weeks, there’s a realistic chance that new multi-year lows could be made. Indeed, it’s a scary time to be a BCE stock investor. And while the February lows could hold, I wouldn’t get my hopes up for the dividend’s survival going into 2026. At the time of this writing, shares now yield 12.4%. That’s a jarring payout and one that’s due to get sliced in half at some point down the line, at least in my view.
With the stock down nearly 57% from its all-time highs, though, I think there’s deep value to be had, even if conditions don’t improve for the big telecoms in the next year or two. If you’re in the market for deep value, BCE stock still looks like a tempting deep-value buy. Even if BCE slashes its dividend by 50% or 75%, it’s still an enticing name as management does its best to ride out what’s left of the hurricane en route to smoother waters.
North West Company
North West Company (TSX: NWC) is a mid-cap ($2.3 billion market cap at the time of writing) dividend gem that currently boasts a yield of 3.4%. As North West is one of the oldest retailers around, Canadian investors looking to “buy Canadian” with their next stock buy may wish to show a preference for the name after its recent 16% correction. While the retail landscape could get cloudy in the near to medium term, NWC seems well-equipped to continue holding its own.
Perhaps the top reason to load up on the name is its fairly low 0.60 beta, which entails less correction to the broader TSX Index. Indeed, North West stands out as a tariff-resilient firm as it aims to continue providing value for the communities it serves. Though North West Company may not be the most exciting firm in the world, its defensive nature and well-covered, growing dividend make for an interesting buy in this environment.
Of course, the lesser-known mid-cap stock has been known to drag its feet through bull markets. Just look at the consolidation in shares between 2021 and early 2024. In any case, if you want to play defence, the name stands out going into the second quarter of 2025.
