2 TSX Dividend Stocks to Buy Amid Slowing-Recovery Fears

Here are two of the best Canadian dividend stocks to buy right now that could help you protect your stock portfolio from slowing-recovery fears.

| More on:

Canadian stocks continue to trade on a mixed to slightly negative note for the fourth consecutive session today. At 11:15 AM EST, the TSX Composite Index was hovering near 20,389 — down 0.5% for the day. The recent weakness in oil prices, mixed metal prices, and rising fears of slowing global economic recovery could be keeping stock investors on their toes lately. Nonetheless, investors could safeguard their portfolios against such negative factors by investing in some high-dividend-yielding TSX stocks for the long term. Here are two of the best Canadian dividend stocks to buy right now.

Enbridge stock

Enbridge (TSX:ENB)(NYSE:ENB) is one of the best Canadian dividend stocks to buy at the moment. This Calgary-based energy infrastructure company generates most of its revenue from the United States, as it transports nearly 20% of total natural gas consumed in the country. Enbridge’s liquids pipelines also transport roughly 25% of total crude oil produced in North America.

Last year, the global pandemic caused a sudden drop in energy demand and oil prices. It took Enbridge’s total revenues in 2020 down by 22% from a year ago. Nonetheless, the company’s revenue-growth trend has already turned positive in the first half of 2021. Its revenue growth is likely to accelerate further in the second half of this year, as the demand for energy products is consistently rising amid reopening economies.

Its reliable business model, resilient cash flow, and transparent long-term growth outlook help Enbridge keep rewarding its investors with high dividends, even in difficult times. For example, the company’s dividend increased by 9.8% YoY (year over year) to $3.24 per share last year. Interestingly, its dividends have grown positively by about 74% in the last five years (between 2015 to 2020). At the current market price of $49.28 per share, ENB stock has a solid dividend yield of 6.8%.

Scotiabank stock

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) could be another great TSX dividend stock to buy right now. The bank makes most of its revenue by providing a variety of financial services in its home market. Apart from Canada, the bank’s other key markets include the United States, Caribbean and Central America, Mexico, Chile, and Peru.

Scotiabank stock currently has a strong dividend yield of 4.4%. Its well-diversified financial services portfolio helped it remain financially stable during the pandemic phase. That’s why the bank increased its dividend by 2.6% in 2020 to $3.60 per share. After posting a 25% drop in its fiscal 2020 adjusted earnings, Scotiabank’s earnings in the first half of fiscal 2021 have been much stronger than the pre-pandemic levels (compared to the first half of the fiscal year 2019).

While ongoing fears about slowing global economic growth might hurt the stock market temporarily, it might not affect strong long-term economic recovery across North America. It could be another reason why Street analysts expect Scotiabank’s YoY earnings-growth rate to improve further in a coming couple of quarters. Despite its strong balance sheet and ongoing strong financial recovery, Bank of Nova Scotia stock hasn’t seen much appreciation this year so far. The stock is currently trading with only 17% year-to-date gains. That’s why you may want to add this amazing dividend stock to your portfolio right now before it starts rallying.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool owns shares of and recommends Enbridge. The Motley Fool recommends BANK OF NOVA SCOTIA. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »

how to save money
Dividend Stocks

The Smartest Dividend Stocks to Buy With $200 Right Now

These smartest dividend stocks can consistently pay and increase their dividends in the coming years, irrespective of the macro uncertainty.

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

3 Utility Stocks That Are Smart Buys for Canadians in November

These utility stocks benefit from regulated businesses and generate predictable cash flows that support higher dividend payouts.

Read more »

Start line on the highway
Dividend Stocks

Invest $10,000 in This Dividend Stock for $600 in Passive Income

Do you want to generate passive income? Forget the rental unit! This option will save you the mortgage yet still…

Read more »

Senior uses a laptop computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

TD Bank (TSX:TD) shares are way too cheap with way too swollen a yield for retirees to pass up right…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Is Brookfield Infrastructure Partners a Buy for its 4.75% Yield?

Brookfield Infrastructure Partners (BIP) has a 4.75% dividend yield. Is it worth it?

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »