Safer Dividend Stocks to Buy With $20,000 Right Now

Find out how dividend stocks can provide income stability during volatile times. Check out these two top Canadian stocks today.

Key Points
  • In volatile markets, dividend stocks can provide income and lower volatility—this piece recommends two safe Canadian dividend names to own with $20,000.
  • Fortis (TSX:FTS) — ultra‑defensive regulated utility with 52 years of dividend increases, ~3.35% yield (a $10K stake ≈ $330.24/year).
  • Granite REIT (TSX:GRT.UN) — high‑quality industrial/logistics REIT with 15 years of distribution growth, ~4.3% yield (a $10K stake ≈ $437.92/year), combining for about $768.16/year on $20K.

Canadian investors are astute to look for safer dividend stocks to buy and hold through the turmoil. The world and stock market have become incredibly volatile.

A dividend stock is nice because you can collect dividend income returns that help offset any stock price volatility. Likewise, many quality dividend stocks tend to be less volatile than the broader market, so they can often outperform the market when things turn bearish.

If you have $20,000 to invest, here are two safe dividend stocks to contemplate owning. You could earn a combined $768.16 per year if you put $10,000 equally into each name.

Pile of Canadian dollar bills in various denominations

Source: Getty Images

Fortis: Canada’s most defensive dividend stocks

The first dividend stock I look to during times of volatility is Fortis (TSX: FTS). Clearly, I am not the only one. Fortis stock is up 17% in the past year.

Fortis just has an incredibly resilient, defensive business. It operates nine regulated utilities across North America. Its assets are 100% regulated. 95% of its assets are distribution and transmission assets. Fortis forms the real backbone for electricity and energy consumption in North America.

Even though it isn’t the most exciting company, it has a $28.8 billion five-year capital plan. It expects to grow its rate base by a 7% compounded annual growth in its rate base over the coming five years. Likewise, it expects to grow its annual dividend by a mid-single-digit rate over that time.

Given its stable business, it has a high credit rating and a good balance sheet. Its debt is long-dated, so it is not overly exposed to interest rate fluctuations.  

Fortis stock yields 3.35% today. A $10,000 investment would earn $82.56 quarterly or $330.24 annualized. It has a 52-year record of growing its annual dividend. I don’t see that legacy falling short any time soon. The stock is a bit pricey today, but it is worth holding if you believe the world will remain a little less than stable in the year ahead.

Granite REIT: One of the safest real estate stocks

Granite Real Estate Investment Trust (TSX: GRT.UN) is one of the most defensive REITs you can find in Canada. It owns 141 institutional quality industrial, logistic, and manufacturing properties across Canada, the United States, and Europe.

This is the perfect alternative to an investment property. You get world-class properties without any of the hassle of managing them. Granite’s properties have over 98% occupancy and an average lease term of over five years.

Granite is very prudent about its balance sheet. This has allowed it to be opportunistic in acquisitions and in unit buybacks (when the stock is depressed). Preserving its strong credit rating ensures Granite doesn’t get into trouble when interest rates fluctuate.

Granite has grown adjusted funds from operations per unit by a 9% compounded annual growth rate over the past five years. The REIT is projecting mid-single-digit growth in 2026.

This dividend stock yields 4.3% today. A $10,000 investment would earn $36.50 monthly or $437.92 annually. Granite has a 15-year history of growing its dividend annually.

The Foolish bottom line

With both these stocks, you are likely to see your dividend income rise over time. With both Fortis and Granite, you get defensive business models, great assets, solid balance sheets, and sustainable dividends. These are perfect safe bets for the world today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
Fortis$75.84130$0.635$82.56Quarterly
Granite REIT$81.17123$0.2967$36.50Monthly

Prices as of March 24, 2026

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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