2 No-Brainer Dividend Stocks to Buy in This Volatile Market

Two “no-brainer” dividend stocks for volatility are the ones with essential demand and cash flow you can actually trust.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 1, 11:45 am EDT

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Key Points

Hydro One is a regulated utility with steady earnings and dividend growth, supported by Ontario’s long-term grid buildout.
Topaz pays a higher yield from royalty and processing cash flows, but it’s still exposed to commodity-price swings.
Hydro One is the safer, slower income pick, while Topaz offers more yield and upside with more energy risk.

Volatile markets make investors picky fast. Flashy growth stories can still work, but dividend investors usually want something simpler when prices swing. The best “no-brainer” dividend stocks don’t need perfect conditions to make sense, but serve real needs, generate repeatable revenue, and give investors a reason to stay calm — all while everyone else watches the market bounce around.

woman considering the future — Source: Getty Images

H

Hydro One (TSX:H) owns and operates much of Ontario’s electricity transmission and distribution system, so its business ties directly to the province’s need for reliable power. That gives it a defensive feel. Over the last year, Hydro One stock also leaned into one of the biggest long-term themes in Canada: grid expansion. The company was selected for new transmission projects, including lines tied to growth across Ontario, and continued working with First Nations partners on major infrastructure.

The latest numbers back up the steady story. In the fourth quarter of 2025, Hydro One stock reported revenue of $2.27 billion, up from $2.1 billion a year earlier. Net income attributable to common shareholders rose to $233 million from $200 million, while basic earnings per share (EPS) climbed to $0.39 from $0.33. For the full year, EPS reached $2.23, up from $1.93 in 2024. That’s not explosive growth, but it’s useful growth. The company also declared a quarterly dividend of $0.3331 per share, putting the annual payout near $1.33. With Hydro One stock recently trading around 26 times earnings and yielding about 2.3%, investors don’t get a bargain-bin price, but reliability.

The future outlook still looks solid. Ontario needs more power for population growth, industrial demand, electrification, and data-heavy infrastructure. Hydro One stock sits right in the middle of that buildout. The risk, of course, comes from valuation and debt. Utilities often carry heavy debt, and higher financing costs can pressure earnings. Regulators also shape returns, so Hydro One stock can’t simply raise prices whenever it wants. Even so, its regulated model, growing asset base, and essential service make it a strong fit for investors who want income without drama.

TPZ

Topaz Energy (TSX:TPZ), meanwhile, gives investors exposure to Canadian energy without acting like a traditional producer. Topaz owns royalty interests and infrastructure assets across the Western Canadian Sedimentary Basin. That means it earns revenue from production on its lands and from processing assets, but it avoids much of the direct capital spending burden producers face. In a volatile market, that asset-light model can look very attractive. Energy prices still matter, but Topaz doesn’t need to fund every drill bit itself.

Its recent results showed why investors keep paying attention. In the fourth quarter of 2025, Topaz generated cash flow of $80.6 million and free cash flow of $79.7 million. Royalty production revenue came in at $62.5 million, while infrastructure assets added $24.2 million in processing revenue and other income. Net income rose 64% year over year to $32.7 million, helped by higher royalty production, stronger processing revenue, and hedging gains. The company paid a quarterly dividend of $0.34 per share, giving the stock a recent yield of around 4.3% at writing. That’s a much richer income stream than Hydro One stock, though investors should remember Topaz trades at a premium valuation for an energy name.

The outlook also looks encouraging. Topaz expects 2026 royalty production of 23,500 to 23,900 barrels of oil equivalent per day (boe/d) and annual processing revenue and other income of $92 million to $94 million. Its Clearwater and northeast British Columbia Montney exposure gives it growth potential, while hedges help soften commodity swings. Still, risks remain. Oil and natural gas prices can move fast, and Topaz’s payout looks high if you only judge it by earnings instead of cash flow. That makes cash generation the key number to watch.