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2 of the Best Dividend Stocks to Buy Before They Start to Recover

Written by Amy Legate-Wolfe at The Motley Fool Canada

This Black Friday to Cyber Monday, it’s time to start changing your attitude towards investing. While you’re spending money for the holiday season, what about making some money? This could happen in two ways, all by considering dividend stocks.

There are dividend stocks currently on sale offering deals better than any you’ll see on Black Friday. Some are down by just 5%, others by up to 30%! But, of course, you want the best of the best.

So today, I’m going to cover two of the best dividend stocks out there. Two that you could certainly hold for decades, trade at a discount, and offer long-term passive income to boot.

Canadian Utilities

Let’s first start out with a no-brainer. Canadian Utilities (TSX:CU) is one of the best choices out there, as the company is the only Dividend King on the TSX today. The utility company soared upwards over the last year as investors focus on the utility sector for protection. However, it’s now come back down with a potential recession eyed next year.

That means right now you can get one of the best dividend stocks on the market for a huge deal. Shares are still up 5% year to date, but down 11% since 52-week highs. You can bring in a dividend then of 4.86% as of writing. One that’s risen by a compound annual growth rate (CAGR) of 8.1% over the last decade.

As for shares, Canadian Utilities stock is up 67% in the last decade, at a CAGR of 5.2%. That’s stable growth in both dividends and share prices for those placing this company among their other dividend stocks. So I’d definitely consider it before it’s too late!

NorthWest REIT

Whereas Canadian Utilities stock is a strong choice with a proven track record, NorthWest Healthcare Properties REIT (TSX:NWH.UN) is a bit on the new side. However, the Healthcare REIT offers secured long-term lease agreements, with an average 14-year lease agreement as of its latest earnings report.

NorthWest is still one of the best dividend stocks to consider if you’re really wanting passive income on a regular basis. The company holds a monthly dividend among dividend stocks, with a yield at 7.85%! Though I should note that the company has yet to increase that dividend. That being said, it’s still massive. Plus; it’s using its funds to expand its healthcare properties around the world.

NWH shares are down 21% year to date, offering a steal in my opinion this Black Friday. Even still, it’s up 103% since coming on the market, for a CAGR of 9.9%. So despite recent performance, I would certainly say that based on the fact it trades at 8.9 times earnings, it’s a superior deal to pick up today.

Bottom line

Both of these dividend stocks are solid choices for those seeking long-term passive income. Whether it’s the stability of a Dividend King, or the security of monthly passive income, you have strong options here. In fact, both would do well in any long-term portfolio, especially at these prices.

The post 2 of the Best Dividend Stocks to Buy Before They Start to Recover appeared first on The Motley Fool Canada.

Should You Invest $1,000 In Canadian Utilities?

Before you consider Canadian Utilities, you'll want to hear this.

Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in November 2022 ... and Canadian Utilities wasn't on the list.

The online investing service they've run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 15 percentage points. And right now, they think there are 5 stocks that are better buys.

See the 5 Stocks * Returns as of 11/4/22

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Fool contributor Amy Legate-Wolfe has positions in NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool recommends NORTHWEST HEALTHCARE PPTYS REIT UNITS. The Motley Fool has a disclosure policy.

2022