Canada markets close in 1 hour 7 minutes
  • S&P/TSX

    20,093.77
    -171.60 (-0.85%)
     
  • S&P 500

    4,227.36
    -56.38 (-1.32%)
     
  • DOW

    33,691.49
    -307.55 (-0.90%)
     
  • CAD/USD

    0.7696
    -0.0030 (-0.39%)
     
  • CRUDE OIL

    90.67
    +0.17 (+0.19%)
     
  • BTC-CAD

    27,806.63
    -2,603.17 (-8.56%)
     
  • CMC Crypto 200

    508.67
    -32.93 (-6.08%)
     
  • GOLD FUTURES

    1,761.50
    -9.70 (-0.55%)
     
  • RUSSELL 2000

    1,959.03
    -41.70 (-2.08%)
     
  • 10-Yr Bond

    2.9780
    +0.0980 (+3.40%)
     
  • NASDAQ

    12,707.47
    -257.88 (-1.99%)
     
  • VOLATILITY

    20.74
    +1.18 (+6.03%)
     
  • FTSE

    7,550.37
    +8.52 (+0.11%)
     
  • NIKKEI 225

    28,930.33
    -11.77 (-0.04%)
     
  • CAD/EUR

    0.7666
    +0.0011 (+0.14%)
     

4 Dividend Stocks With Yields of at Least 5% in a Bearish Market

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
·3 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
stock market
stock market

Written by Sneha Nahata at The Motley Fool Canada

With top TSX growth stocks erasing most of their gains and the broader market under the bear grip, it’s prudent to focus on earning steady and high yields from relatively stable stocks. Besides offering regular income, high-quality dividend stocks offer protection to your portfolio due to their strong earnings base. Among the top dividend payers, my top picks offer dividend yields of 5% or more.

Scotiabank 

Let’s begin with Scotiabank (TSX:BNS)(NYSE:BNS). The financial services giant has a stellar track record of dividend payments. It paid its first dividend in July 1833. Moreover, it has been continuously paying dividends since then.

What’s more? Scotiabank’s increased its dividend at a CAGR of 6% since 2011. Further, investors can earn a reliable dividend yield of 5.4% by investing in it at current levels.

Scotiabank’s diversified revenue streams, exposure to high-growth banking markets, rising interest rates, and strong credit quality bode well for growth. Also, its focus on driving productivity and strong balance sheet bode well for future earnings growth and dividend payouts.

TC Energy

With 22 consecutive years of dividend growth and most of its adjusted EBITDA coming from the regulated and contracted assets, TC Energy (TSX:TRP)(NYSE:TRP) is one of the most reliable names to generate regular income amid all market conditions.

TC Energy owns a solid and growing portfolio of regulated and contracted assets that generate resilient cash flows to support its payouts. Further, a high utilization rate, multi-billion secured capital projects, energy transition opportunities, steady energy demand, and higher commodity prices will support its growth.

Thanks to its solid cash flows, TC Energy expects to deliver 3-5% growth in its annual dividend in the coming years. Further, TC Energy offers a dividend yield of 5.3%.

NorthWest Healthcare Properties REIT

Investing in REITs could be a smart move to generate regular income. Moreover, NorthWest Healthcare (TSX:NWH.UN), with its defensive portfolio of healthcare assets, is a reliable investment amid the current market scenario.

As most of its tenants are supported by governments, NorthWest generates relatively stable cash flows. Further, its long lease expiry term, high occupancy rate, and growing penetration of inflation-indexed rents support its payouts. NorthWest is also expanding into high-growth markets and focusing on deleveraging its balance sheet. What stands out is that NorthWest Healthcare offers an attractive dividend yield of 6.6%.

Enbridge

Energy infrastructure giant Enbridge (TSX:ENB)(NYSE:ENB) is a dependable bet for income investors. With 27 consecutive years of dividend growth and a high yield of 6.3%, it is a must-have stock in your portfolio. It’s worth mentioning that despite the challenges from the COVID-19 pandemic, Enbridge didn’t reduce its dividend payments. Moreover, it continued to increase it, which reflects the strength of its business model and the resiliency of its cash flows.

Its diverse cash streams, high asset utilization rate, contractual arrangements, recovery in mainline volumes, and solid energy outlook provide a strong foundation for future earnings growth. Its solid secured capital program, acquisitions, and opportunities in the renewables segment bode well for growth. Also, about 80% of Enbridge’s EBITDA is protected against inflation. Enbridge’s payouts are well protected. Moreover, its payout ratio of 60-70% is sustainable.

The post 4 Dividend Stocks With Yields of at Least 5% in a Bearish Market appeared first on The Motley Fool Canada.

5 Free Passive Income Stock Picks for 2022

Looking for high-quality Canadian stocks that pay attractive dividends?

Our market beating* Stock Advisor Canada team has released a new report revealing five blue-chip Canadian stocks that pay handsome dividends, and we’re giving away this report for free for a limited time.

Get our favorite passive income stocks today, and learn more about all the perks Stock Advisor Canada provides our members!

Get Your Free Report * Returns as of 6/22/22

More reading

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA, Enbridge, and NORTHWEST HEALTHCARE PPTYS REIT UNITS.

2022

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting