When markets feel shaky, and interest rates stay higher for longer, it’s comforting to have a few steady dividend payers in your portfolio. Not every stock needs to be flashy. Some are just solid. These hum along, pay you cash, and hold up when everything else starts spinning. In Canada, two stocks that offer this kind of comfort are Hydro One (TSX: H) and goeasy (TSX: GSY). Both have different strengths but share one important trait: reliability.
Image source: Getty Images
Hydro One
Hydro One isn’t the kind of company that makes headlines every day, but that’s part of the appeal. The company is Ontario’s largest electricity transmission and distribution provider. It supplies power to approximately 1.5 million customers, and most of its operations are regulated by the Ontario Energy Board. That means earnings are steady. There’s not much guesswork when it comes to how Hydro One brings in revenue.
As of writing, Hydro One trades at around $50.75 and has a market cap close to $30 billion. It pays a quarterly dividend of $0.3324 per share, which works out to $1.33 annually. That gives it a yield of 2.6%, which isn’t massive, but it’s reliable and consistent. In its most recent quarterly earnings report, Hydro One posted revenue of $2.15 billion, up from $2.08 billion the year before. Net income came in at $282 million, with earnings per share of $0.47. The company also raised its dividend by 6%, marking its eighth straight annual increase.
Hydro One isn’t going to double your money overnight. But in a market where volatility is high, and bonds don’t always offer enough return, this stock fills a crucial role. You can count on it to pay its dividend. You can count on it to operate with low risk. And you can count on it to grow slowly and steadily over time. In a defensive strategy, that’s exactly the kind of company you want on your side.
goeasy
Then there’s goeasy. This one’s a little different. goeasy provides personal loans and leasing services to non-prime Canadian borrowers. That might sound risky, but goeasy has built a strong business by understanding this customer base and managing risk better than most people expect.
goeasy stock trades around $148.45 and has a market cap of about $2.4 billion. It pays a quarterly dividend of $1.46, or $5.84 annually, giving it a yield of about 3.9%. That’s a solid return for a company that’s also growing fast. In its most recent earnings report, goeasy reported revenue of $364 million, up from $312 million the year before. Net income hit $65 million, or $3.87 per share. It was the 20th consecutive quarter of earnings growth.
The company also has a solid dividend track record. It raised its dividend every year for nine years. And with a payout ratio under 30%, there’s room for more growth. This is the kind of dividend stock that can work for both income and growth investors. You get regular cash, and you also get exposure to a business that’s expanding its footprint across the country.
Bottom line
Together, Hydro One and goeasy offer a blend of safety and growth. Hydro One gives you the calm, predictable side of dividend investing. goeasy gives you the high-yielding, fast-growing side. Allocating to both means you don’t have to pick between playing defence and going for income upside; you get both.
In a market like this one, that balance matters. Higher interest rates can stick around longer than we expect. Inflation might not fall as fast as central banks hope. And volatility will probably return. That’s why these two Canadian stocks are worth securing now. They’re not just paying you while you wait; they’re helping you sleep at night. And that’s not a bad deal.
