The Canadian markets have been volatile since the start of 2026, with the TSX 60 Index up 5.2% year-to-date after two sharp dips in January and March. Rising energy prices from the US-Iran war kept Canadian energy stocks at their all-time high. The upcoming review of the U.S., Mexico, and Canada Agreement (USMCA) on July 1, 2026 has kept certain stocks, especially Bombardier, volatile despite strong fundamentals. Meanwhile, the fears of artificial intelligence replacing traditional software have kept Constellation Software in the red.
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No-brainer Canadian dividend stocks for volatile markets
When markets are difficult to predict, as was the case during the pandemic, the solution lies in investing in the most obvious stocks. Stability outperforms in a volatile market.
CT REIT
Speaking of stability, CT REIT (TSX: CRT.UN) has shown stable and consistent cash flow growth with no major restructuring or deleveraging. Many REITs have undergone portfolio recycling, dividend cuts, and a pause on new development projects since the pandemic. However, CT REIT continued to acquire, develop, and intensify Canadian Tire stores. In fact, Canadian Tire announced its True North strategy to modernize its operations and accelerate retail growth.
CT REIT continued to develop and intensify Canadian Tire stores and grow its funds from operations and dividends annually. Its dividend payout ratio has hovered between 72% and 74%, with the last reported ratio of 72.5% in the first quarter of 2026. It has the financial flexibility to keep growing its dividends annually. Every new store brings new rental income.
At the first-quarter 2026 earnings call, CT REIT chief executive officer Kevin Salsberg announced a 3.5% increase in distributions from July 2026. This assurance makes CT REIT a stock to buy amidst uncertainty.
A gold stock to buy for dividends
While CT REIT brings the stability of real estate income, Lundin Gold (TSX: LUG) brings the safety of gold as an asset class that hedges against paper currency. Among the many large gold mining stocks, my favourite is Lundin Gold because of its low all-in-sustaining cost (AISC) of $1,114/oz. The gold price is above US$4,500/oz. The wider the gap in the cost and gold price, the higher the free cash flow for the gold miner.
When the gold price rally began in 2024, Lundin used the extra cash to become debt-free. Since then, it has maintained a healthy cash reserve. It had a cash balance of $704 million at March 31, 2026.
The company also sustained its dividend policy to distribute 50% of the free cash flow above $300 million in dividends. The $300 million is for the fixed dividend component of $1.20 a year. The widening gap between the gold price and AISC is fueling the variable component of the dividend. That explains the $1.21 quarterly dividend declared in the first quarter of 2026.
If market volatility increases, investors may rush to buy a safe-haven asset like gold, pushing up its price. That means higher dividends for Lundin Gold shareholders.
Now is a good time to buy Lundin shares as you can lock in a higher dividend yield.
