2 Top TSX Dividend Stocks to Buy as Market Selloff Intensifies

Buying these two Canadian dividend stocks could help you navigate through rough economic waters in 2022, as the stock market selloff intensifies.

| More on:

The stock market selloff is intensifying, as inflationary pressures, rising interest rates, continued global supply chain issues, and slowing corporate earnings growth are haunting investors. In such an uncertain market environment, when fears of a looming recession are increasing, investors may find a safe haven in dividend stocks. Adding some reliable TSX dividend stocks to your stock portfolio could help you keep getting regular income — helping you navigate through rough economic waters.

Let’s take a closer look at two of the most reliable Canadian dividend stocks I find worth buying now, irrespective of market uncertainties.

Pembina Pipeline stock

Pembina Pipeline (TSX:PPL)(NYSE:PBA) is the first stock in my list of the most reliable Canadian dividend stocks to buy now. This Calgary-based energy transportation company currently has a market cap of about $ 27 billion, as its stock trades at $49.18 per share with strong 28% year-to-date gains.

On May 5, Pembina Pipeline announced its solid first-quarter financial results, as its adjusted earnings stood at $0.81 per share — up 58.8% YoY (year over year). Higher volumes on certain systems and new assets placed into service pushed its total revenue higher by 48.6% YoY in Q1 to $3.04 billion.

To add optimism, the pipeline company’s quarterly adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) crossed the $1 billion mark for the first time ever. This positive development gave Pembina Pipeline confidence to raise its full-year 2022 adjusted EBITDA guidance range to $3.45 to $3.6 billion from its original guidance range of $3.35 to $3.55 billion.

Given its attractive dividend yield of around 5.1% and a handsome track record of consistent dividend growth, long-term investors could consider adding it to their stock portfolios right now.

Dream Industrial REIT stock

In times of economic uncertainty, it might be a good idea for investors to diversify their income-based stock portfolios with shares from different sectors. I find the shares of Dream Industrial Real Estate Investment Trust (TSX:DIR.UN) to be undervalued at the moment, as it hasn’t seen much appreciation lately, despite the consistent strength in its financials throughout the pandemic phase. This reliable dividend stock currently trades with 22% year-to-date losses at $13.45 per share against a 5.8% drop in the TSX Composite benchmark.

Apart from its home market, other markets like Europe and the United States act as major revenue streams for Dream Industrial REIT. In 2021, Dream Industrial’s total revenue rose by 22.8% YoY to $289.8 million, as the robust leasing momentum continued to drive organic growth. With this, the Toronto-based REIT managed to register a solid 138% YoY jump in its adjusted earnings last year to $2.81 per share, beating estimates by nearly 30%. Despite these positive growth figures, this Canadian dividend stock continues to underperform the broader market by a huge margin.

As Dream Industrial continues to focus on executing its development pipeline, its strong financial growth trends are likely to remain intact in the long term, helping the company continue rewarding its investors with strong dividends. This REIT currently has an impressive dividend yield of nearly 5.2%, which should help you keep generating extra income irrespective of stock performance.

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 recommends DREAM INDUSTRIAL REIT and PEMBINA PIPELINE CORPORATION. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

These top dividend stocks both offer attractive yields and trade off their highs, making them two of the best to…

Read more »

Middle aged man drinks coffee
Dividend Stocks

Here’s the Average TFSA Balance at Age 35 in Canada

At age 35, it might not seem like you need to be thinking about your future cash flow. But ideally,…

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Invest Your $7,000 TFSA Contribution in 2024

Here's how I would prioritize a $7,000 TFSA contribution for growth and income.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

CPP Pensioners: Watch for These Important Updates

The CPP is an excellent tool for retirees, but be sure to stay on top of important updates like these.

Read more »

Technology
Dividend Stocks

TFSA Investors: 3 Dividend Stocks I’d Buy and Hold Forever

These TSX dividend stocks are likely to help TFSA investors earn steady and growing passive income for decades.

Read more »

four people hold happy emoji masks
Dividend Stocks

Love Dividend Growth? Check Out These 2 Income-Boosting Stocks

National Bank of Canada (TSX:NA) and another Canadian dividend-growth stock are looking like a bargain going into December 2024.

Read more »

An investor uses a tablet
Dividend Stocks

A Dividend Giant I’d Buy Over Enbridge Stock Right Now

Enbridge stock may seem like the best of the best in terms of dividends, but honestly this one is far…

Read more »