As volatility and uncertainty in the markets persist, long-term investors are increasingly viewing this as an opportunity to buy high-quality stocks while they’re still trading below their highs. And right now, some of the best opportunities lie in high-quality dividend stocks with strong, dependable operations.
Dividend stocks are some of the best investments to make now since the dividends they pay can help investors earn returns in the short term, should the market continue to see heightened volatility.
Furthermore, the best dividend stocks have high-quality and reliable operations that help make them more resistant to macroeconomic headwinds.
So, if you’re looking to take advantage of the current market environment, here are five of the best dividend stocks to buy now.
Two top monthly dividend stocks
While there are plenty of high-quality Canadian stocks to buy now, two of the best monthly dividend stocks are Freehold Royalties (TSX:FRU) and Killam Apartment REIT (TSX:KMP.UN).
Freehold is an energy stock that earns royalties from other energy companies that are using its land to produce oil and gas. It has a low-cost, low-risk business model that makes it an ideal stock for dividend investors.
Furthermore, Freehold is well-diversified owning land both in the United States and Canada. This helps to reduce risk even further, and exposes it to more growth potential, especially if one region experiences faster development.
And with Freehold trading off its 52-week high, its dividend yield has increased to roughly 8.4%.
Meanwhile, Killam owns residential real estate assets across Canada, making it a reliable business that should be mostly immune from any tariff impacts.
Furthermore, as interest rates continue to decline, Killam has a tonne of potential to see a significant rally. Plus, with the stock trading near its 52-week low, investors can buy Killam today and lock in a yield of more than 4.1%.
So, if you’re looking for top dividend stocks to buy now, both Killam and Freehold are among the best.
Two top blue-chip stocks
In addition to Killam and Freehold, two top blue-chip stocks to buy now are GFL Environmental (TSX:GFL) and Nutrien (TSX:NTR).
Both GFL and Nutrien are ideal long-term investments due to the essential nature of their operations.
GFL provides waste management services, which is one of the most important industries in our economy. Meanwhile, Nutrien is the largest fertilizer producer in the world, playing a critical role in global food production and helping ensure agricultural stability as demand for crops continues to rise.
However, while both companies are massive blue-chip stocks, what they offer investors is considerably different.
GFL continues to reinvest the majority of its capital in growing its operations, especially by acquisition, and therefore only offers a dividend yield of just over 0.1% today. However, with that said, over the past three years its share price has gained over 66%.
Nutrien, on the other hand, still has growth potential, but it returns more capital to investors. And with the stock trading off its highs, its dividend yield has increased to more than 4.2%.
So, if you’re looking for a blue-chip stock with more growth potential, GFL is one of the best to consider, but if you prefer a higher dividend alongside longer-term growth potential, Nutrien might be the better stock for you.
A top Canadian growth stock offering a compelling yield
Lastly, one of the best dividend stocks to buy now is goeasy (TSX:GSY), which is known as more of a growth stock due to its incredible performance over the last few years.
However, in addition to the rapid growth in earnings that goeasy has achieved, it has also consistently returned cash to investors and increased its dividend.
In fact, in 2020 its annual dividend was just $1.84 per share. Meanwhile, today its annual dividend is up significantly at $5.84 per share.
Therefore, with goeasy trading down more than 25% from its 52-week high, not only can you buy the stock while it’s undervalued today, but you can also lock in a dividend yield of more than 3.9%.
So, if you’re looking for a top dividend stock to buy in this environment, there’s no question you’ll want to consider goeasy.
