Considering the fact that the S&P/TSX Composite Index is up by over 31% from its 52-week low, the Canadian economy seems to be doing well on paper. However, the growth in the equity securities market has accompanied rising inflation, slower economic growth worldwide, and persistent geopolitical tensions that paint a bleak picture.
In a market environment as uncertain as this, seasoned investors have fewer options when it comes to investing for stability and attractive returns. Fortunately, the Canadian stock market has no shortage of high-quality stocks with resilient underlying businesses and reliable payouts.
Today, I will discuss two TSX dividend stocks with impeccable dividend streaks that can deliver consistent income and long-term returns to shareholders. Staples in many investment portfolios, these high-quality dividend stocks might be the right holdings to consider for your self-directed investment portfolio.
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Enbridge
Enbridge Inc. (TSX: ENB) is a $156.6 billion market-capitalization diversified energy infrastructure company that boasts a portfolio of revenue-generating assets including renewable energy, natural gas utilities, and midstream operations. Around 98% of the company’s revenue comes from regulated assets and long-term contracts. This means predictable cash flows that do not fluctuate due to changing commodity prices.
The resilient business model lets Enbridge enjoy shielded financial performance during times of economic uncertainties, letting it deliver consistent returns to investors. As a result of its business model, Enbridge stock has rewarded shareholders with quarterly dividends for 70 years without fail, increasing payouts for the last 31 years. As of this writing, Enbridge stock trades for $71.71 per share and pays $0.97 per share each quarter, translating to a 5.4% annualized dividend yield that you can lock into your portfolio today.
Fortis
Fortis Inc. (TSX: FTS) is another excellent dividend stock with a long history of hiking payouts to investors. Fortis is a $39.5 billion market-capitalization utility holdings company that provides natural gas and electric utility services to over 3 million customers across Canada, Latin America, and the US. Unlike Enbridge, it is a pure-play in the utilities sector, generating almost its entire revenue from long-term contracted assets in highly rate-regulated markets.
The essential nature of its business and predictable cash flows allow management at Fortis to invest comfortably in capital projects and fund dividend growth. Its successful business model has been rewarding increasing dividends to investors for decades. It is one of the few Canadian dividend stocks that boast an over 50-year dividend growth streak. As of this writing, Fortis stock trades for $77.23 per share and pays investors $0.64 per share each quarter, translating to a 3.3% dividend yield.
Foolish takeaway
Successfully investing in a volatile stock market can be challenging, but it is possible. It is a matter of conducting your due diligence and identifying long-term investments that can deliver consistent returns over the long run. If you build a well-balanced portfolio of reliable dividend stocks in a Tax-Free Savings Account (TFSA), you can enjoy the returns without incurring taxes on dividends, capital growth, or on any withdrawals. To this end, Fortis stock and Enbridge stock can be excellent picks to begin building your income-focused portfolio.
