2 Dividend Stocks to Buy and Hold Through Market Volatility

When markets get volatile, the best dividend stocks usually aren’t the ones with the highest yields, but the ones with reliable cash flow, sticky demand, and enough pricing power or resilience to keep paying shareholders when the market gets nervous. That can mean financial infrastructure, strong consumer brands, or businesses tied to everyday habits instead of big economic swings.

In shaky markets, consistency gets expensive fast, so it helps to look for dividend stocks that still offer quality without relying on a flashy story. With that in mind, let’s look at two to consider on the TSX today.

X

TMX Group (TSX:X) looks like a smart place to start. It runs the Toronto Stock Exchange, TSX Venture Exchange, the Montreal Exchange, and several market data and analytics businesses, so it earns money from trading, listings, clearing, and data. That gives it a nice mix of revenue streams when markets get noisy. Over the last year, it also stayed in the spotlight as management pushed for changes to Canadian reporting rules and talked up a stronger initial public offering (IPO) pipeline for 2026, especially in mining and critical minerals.

The earnings were strong. TMX reported record fourth-quarter 2025 revenue of $457.8 million, up 16%, while adjusted diluted earnings per share (EPS) climbed 22% to $0.60. For full-year 2025, adjusted diluted EPS rose 25% to $2.13. The board also raised the quarterly dividend 9% to $0.24 per share, marking its fourth increase in two years.

The valuation is not dirt cheap, but it still works for a long-term defensive holding. It currently sits at about 36 times earnings, which is a premium, but investors are paying for a business that benefits from volatility rather than fearing it. That’s a handy trait when markets get rocky. The main risk is that capital markets activity cools off, but TMX has enough recurring and diversified revenue to keep looking attractive. And a 1.6% yield makes it that much sweeter.

AW

A&W Food Services (TSX:AW) is a different kind of dividend stock, but it also fits. It franchises A&W restaurants across Canada, which gives it exposure to a familiar consumer brand and lots of everyday spending. That’s useful in volatile markets since people may cut back on splurges, but they still want quick and affordable meals. Over the last year, A&W leaned harder into value offers, opened 26 new restaurants, and kept posting positive same-store sales growth in all four quarters of fiscal 2025.

Its latest earnings showed steady progress. Fiscal 2025 system sales rose 2.8% to $1.9 billion, revenue increased 1% to $294.1 million, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rose 7% to $100 million. Net income per diluted share jumped to $2.29 from $0.95 a year earlier. Better yet for income investors, A&W declared total cash dividends of $1.92 per share in fiscal 2025 and reaffirmed its quarterly dividend of $0.48 per share. That yield now sits at about 5.1% at writing.

The dividend stock still looks reasonable for a steady restaurant franchisor. It trades at about 16 times earnings. That’s not a bargain-bin multiple, but it’s hardly excessive for a brand with improving margins and a solid dividend. Management’s 2026 guidance also calls for adjusted EBITDA of $103 million to $105 million and same-store sales growth of 0.5% to 3.0%. The risk is simple, however. Canadian consumers are still under pressure, but A&W’s value focus makes it one of the better names to watch when volatility sticks around.

Bottom line

If you want two dividend stocks that could handle market volatility with less drama, these look like strong options. TMX gives you a business that can actually benefit from trading activity and market noise. A&W gives you a familiar consumer brand with dependable demand and a healthy payout. And both can bring in stellar income with even $7,000.

One is tied to the plumbing of the market. The other is tied to everyday habits. In a shaky year, that’s a pretty useful mix.