Rising geopolitical tensions are worsening the already prevalent volatility in the market. In times of uncertainty in the stock market, finding reliable investments that can offer you stable returns is crucial. Dividend investing is one of the best ways to use your investment capital during such market environments.
Income-generating assets like dividend stocks can help you create a passive-income stream that can supplement your account balance with a little extra cash through payouts. The TSX boasts several companies that pay investors their shareholder dividends. Ideally, you should focus on investing in dividend-paying companies with resilient cash flows, a potential for growth, and a track record for delivering regular payouts.
Today, I will discuss three dividend stocks that you could consider investing in for this purpose.
Fortis
Fortis (TSX:FTS)(NYSE:FTS) is a $28.02 billion market capitalization utility holdings company headquartered in St. John’s. The company owns and operates several utility businesses across Canada, the U.S., Central America, and the Caribbean, generating most of its revenues through highly rate-regulated and long-term contracted assets.
It generates predictable cash flows that allow its management to fund its capital plans and dividend payouts comfortably. A Canadian Dividend Aristocrat, Fortis stock has delivered dividend hikes for 48 consecutive years and looks well positioned to continue its streak. At writing, Fortis stock trades for $59.26 per share, and it boasts a juicy 3.61% dividend yield.
Enbridge
Enbridge (TSX:ENB)(NYSE:ENB) is a $114.14 billion market capitalization giant in Canada’s energy infrastructure industry. Headquartered in Calgary, Enbridge owns and operates an extensive network of pipelines that services oil producers. It is responsible for transporting a considerable portion of all the traditional energy sources used in North America, playing a crucial role in the economy.
Enbridge stock is also another strong bet for Canadian investors looking for assets to create a reliable passive-income stream. The company’s strong operational revenues and outlook as it expands its renewable energy projects could position it well for long-term growth. At writing, the Canadian dividend stock trades for $56.33 per share, and it boasts a juicy 6.11% dividend yield.
TC Energy
TC Energy (TSX:TRP)(NYSE:TRP) is a $68.88 billion market capitalization energy company. Headquartered in Calgary, TC Energy is another major pipeline company with an extensive network that services energy producers in Canada. TC Energy boasts a high asset utilization rate, and its strong, secure capital program paints a good picture for its future.
TC Energy stock trades for $70.21 per share at writing, and it boasts a juicy 5.13% dividend yield. The company projects its dividends to increase by 3-5% per year for the next few years, and it could be the right time to pick up its shares before its dividend hikes kick in.
Foolish takeaway
Finding and investing in the right dividend-paying companies can help you create a strong passive-income portfolio. You could consider using the payouts as extra spending cash for your monthly expenses. Alternatively, you could reinvest the shareholder dividends to buy more shares of the dividend stock and accelerate your wealth growth through the power of compounding.
TC Energy stock, Fortis stock, and Enbridge stock are three reliable dividend stocks that could be ideal for either purpose.
