Dividends can be your friend when the market is topsy-turvy. Stocks can quickly decline. However, if you pick your dividends wisely, your dividend stream can remain resilient (and even grow if you are lucky).
Dividend income can offset any temporary losses. It can act like ballast that balances the overall returns of a portfolio during a market storm.
While I don’t recommend a portfolio of only dividend stocks, it is a good idea to befriend a few of these stocks within your portfolio. Here are some dividend stocks I’d hold if the market continues to be uncertain for the rest of 2025 and beyond.
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Fortis: The safest dividend you are going to find
Fortis (TSX:FTS) is not a stock to own if you want exciting gains. This dividend stock has only compounded its capital by about 5% per year for the past five and 10 years. It is not exciting, period. However, when you add in the dividends, Fortis has delivered a market-beating 9% total annual return.
Fortis is a low-beta stock. This means its returns have a low correlation to the broader stock market. Often, when the market declines, its stock outperforms. You hold this stock for times when the market is crashing.
Fortis has a very stable and resilient business. It operates a regulated gas and electricity utility business across North America. It just delivered solid first-quarter results where earnings per share rose 7%. The company is targeting 5-6% annual dividend-per-share growth. This stock has over 50 years of dividend growth under its belt. It yields 3.73% right now.
CP: A top blue-chip stock in Canada
Canadian Pacific Kansas City (TSX:CP) does not pay a large dividend. This dividend stock only yields 0.8% right now. However, it has a history of great dividend growth (despite pausing dividend growth in the past couple of years).
Today, its balance sheet is in good shape, with its net debt to adjusted earnings before interest, tax, depreciation, and amortization (EBITDA) dropping below 3.1 times. It just announced a 20% dividend increase and a 4% share-buyback program.
Its new integrated transportation network across North America is yielding strong growth opportunities. The company continues to outperform its railway peers.
Given its diversified network, it can be very flexible in adapting to various economic circumstances. As a result, it may not be as impacted by tariffs or trade wars as the market is worried. This stock continues to generate strong cash flow, so the outlook for further dividend growth is good.
Pembina Pipeline: A high-dividend stock and modest growth ahead
Another stable dividend stock for uncertain times is Pembina Pipeline (TSX:PPL). This is a stock you can look at if you want to get a higher dividend yield that you know will be safe. It yields 5.4% right now.
Its infrastructure assets are essential to Canadian energy producers. Over 85% of its business is on long-term contracts. That contracted income widely supports Pembina’s dividend.
Pembina has some attractive growth opportunities as it develops one of only a few LNG terminals in Canada. Demand for that asset is already very strong. There could be potential for more capital project additions from there.
With a strong balance sheet, Pembina can largely self-fund its growth. Likewise, it has returned to a low single-digit dividend-growth trajectory. For a safe business, a high dividend, and modest growth, it’s a great bet today.
