When Canada and the U.S. have trade disagreements, investors often look for companies that can handle the economic bumps. Mid-sized Canadian companies that pay dividends, especially those that don’t rely too much on trade across the border, can be a good mix of being stable and providing income. Today, let’s look at three dividend stocks that look like strong options.
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Exchange Income
Exchange Income (TSX:EIF) is a dividend stock with a mix of different businesses, mainly in aviation and manufacturing. Most of what it does is within Canada, so it’s less likely to be affected by trade issues with the U.S. In 2024, the dividend stock reported revenue of $1.6 billion, showing that there’s a steady need for what it offers.
With a dividend yield of about 5.4% at writing, EIF pays a consistent monthly income to its shareholders. Because it has different kinds of businesses and focuses on essential services, it tends to be pretty stable even when the economy is a bit shaky. It’s like having a few different engines to keep the plane flying smoothly.
Altogether, it holds a diverse range of businesses, including aviation services in remote communities and manufacturing of specialized equipment. This diversification helps to cushion it if one sector faces a downturn. This makes it a solid dividend stock that should be able to give investors a smoother ride.
Emera
Emera (TSX:EMA) is a utility company with operations in both Canada and the United States. While it does have some business in the U.S., its main utility businesses are regulated, which means it has pretty predictable revenue coming in. In 2024, Emera reported earnings of $1.1 billion. This was helped by its investments in renewable energy and infrastructure.
The dividend stock offers a dividend yield of around 4.76% for regular income. Because Emera focuses on sustainable energy and has a stable cash flow, it can be a reliable choice even when there are trade uncertainties. People always need power, right?
Emera’s regulated utilities provide essential services like electricity and natural gas. These are services that people and businesses need consistently, regardless of trade disputes. Dividend stock investments in renewable energy sources like wind and solar power are also becoming increasingly important. All considered, it offers stability in returns and dividends to boot.
Cameco
Cameco (TSX:CCO) is a uranium producer with main operations in Canada, but it sells to customers all over the world, including the United States. In 2024, Cameco reported revenue of $2.4 billion, driven by more demand for nuclear energy. The dividend stock has a smaller dividend yield of about 0.3% because it’s focusing more on reinvesting in the business and growing. Because Cameco is in the nuclear energy sector and its main operations are in Canada, it has some protection from trade-related problems.
Cameco’s position as a major uranium producer benefits from the growing global interest in nuclear energy as a cleaner alternative to fossil fuels. While its dividend yield is lower, its potential for growth in a sector with increasing demand could be attractive to some investors. Uranium isn’t typically subject to the same trade tariffs as manufactured goods.
Bottom line
Exchange Income Corporation’s monthly dividend payments can be attractive for those seeking regular income. Emera’s long history of dividend payments and its commitment to sustainability can appeal to long-term investors. Cameco’s focus on growth in a strategic energy sector could offer capital appreciation potential. Together, these three dividend stocks have established track records and are not overly reliant on exports to the United States. This makes them potentially more resilient during trade disputes. Investors should still consider the overall economic climate and sector-specific risks when evaluating these stocks. However, these business models provide some insulation from direct cross-border trade headwinds.
