2 No-Brainer Dividend Stocks to Buy Hand Over Fist

These two blue-chip TSX dividend stocks can be excellent holdings for an uncertain market environment.

Key Points
  • Geopolitical uncertainty has driven TSX volatility, though the index has recovered about 8.51% from its March 20 low — markets remain fragile.
  • Defensive blue‑chip picks: Enbridge (TSX:ENB) — large energy/infrastructure operator with ~5.24% yield and long dividend growth; Bank of Nova Scotia (TSX:BNS) — Big‑Six bank with ~4.12% yield and an almost two‑century dividend record.
  • Foolish takeaway: both offer income and stability for cautious investors, but don’t concentrate holdings—diversify across industries to reduce risk.

The ceasefire between the U.S. and Iran seems to be holding, despite the “defensive operations” seemingly contradicting the terms of the agreement. Any potentially positive or negative development in that situation causes the markets worldwide to move drastically one way or the other. The Canadian stock market has staged quite a recovery from its recent lows.

As of this writing, the S&P/TSX Composite Index, which is the benchmark for the Canadian stock market, is up by 8.51% from its March 20th low. However, uncertainty continues to reign, and many people are not convinced that the peace talks will bear lasting results. In such a market, focusing more on defensive investments might work better for Canadians wary of the news and what it’s doing to their portfolios.

My best bet in such conditions is to invest in Canadian blue-chip stocks that pay dividends without fail to investors.

dividend stocks bring in passive income so investors can sit back and relax

Source: Getty Images

Enbridge

Enbridge (TSX: ENB) is a $161.51 billion market cap giant in the Canadian energy industry. The Calgary-headquartered company owns and operates an extensive energy infrastructure network that transports a lot of the crude oil produced and consumed in North America. It also has one of the most significant presences in the utility sector in the region, pivoting away from being a pure-play traditional energy stock.

Enbridge also has growing renewable energy operations that will further future-proof its business for a greener future in the energy industry. The stock has been paying investors their dividends for several decades and has increased payouts at an average of 9% annually since 1995.

As of this writing, Enbridge stock trades for $74.01 per share and pays investors $0.97 per share each quarter, translating to a juicy 5.24% dividend yield.

Bank of Nova Scotia

Bank of Nova Scotia (TSX: BNS) is a $131.66 billion market-cap Canadian bank. One of the country’s Big Six banks, Bank of Nova Scotia is another reliable dividend-paying stock that finds itself as a staple in most investor portfolios. Also called Scotiabank, BNS stock has an extensive history of paying shareholders their dividends regardless of what’s happening in the market. It has paid investors each year since July 1, 1833.

Boasting an almost two-century dividend-paying streak, it has become a reliable investment for many Canadians, especially for the long run. If you are worried about its dividends due to the Iran conflict, you should know that it did not suspend payouts during two World Wars and several economic crises. As of this writing, it trades for $106.92 per share and pays investors $1.10 per share each quarter, translating to a 4.12% dividend yield.

Foolish takeaway

Before you invest in dividend stocks, it’s important to remember never to put all your eggs in one (or two) baskets. Diversifying across several high-quality dividend stocks can provide you with a buffer if one or more holdings pause, slash, or stop dividends altogether.

Enbridge stock and Scotiabank are two foundational holdings with impeccable dividend-paying streaks, but even the top dividend stocks can experience difficulties. While I would count on these two stocks to provide reliable returns, I would also diversify across different industries for some risk mitigation.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy.

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