The TSX is definitely a worrisome place these days. And unfortunately, economists are pretty convinced things will get worse before it gets better. That’s simply what happens when the word recession really starts to be heard all over the place.
However, while I’m certainly worried about some of the stocks in my portfolio, there are dividend stocks I’ve purchased that I know will remain strong. I don’t mean just now but forever.
Today, I’m going to go over the three dividend stocks I’ll be holding in my portfolio no matter what happens in the markets.
CIBC stock
Canadian Imperial Bank of Commerce (TSX:CM) is a strong choice for me because it’s a Big Six bank. That means it has provisions for loan losses. That’s beneficial for time such as, you know, right now. And CIBC stock is my top choice for a few reasons — and one I’ll never sell because of those reasons.
First, it has the highest dividend of the batch. That yield comes in at 6.11% as of writing. Yet it’s also cheap in a number of ways. First, there’s the actual share price, which is far lower thanks to a recent stock split. But it also trades at just 8.28 times earnings!
Finally, now that I’m receiving passive income, I can look back on the company’s strong history of growth and know I’ll continue to see returns. In fact, I could see even more thanks to the recent growth opportunities the company has taken on, including investing in emerging markets.
Shares of CIBC stock are down 22% year to date, so I’ll be buying more before I sell even one of these shares.
NorthWest REIT
Another of the top dividend stocks I’ll be holding no matter what is NorthWest Healthcare Properties REIT (TSX:NWH.UN). Sure, NorthWest stock is new — far newer than CIBC stock or even other real estate investment trusts (REIT). However, it’s invested in the strong sector of healthcare.
It’s not just focused on any healthcare, but healthcare properties. This is a solid investment in my book, as the pandemic has showed us just how much more we need those properties to even survive on a basic level. Meanwhile, NorthWest stock continues to expand its business, now with a global portfolio of properties ranging from office buildings to hospitals.
Yet again, it’s a steal right now. Shares trade at just 8.33 times earnings and under $10 per share! Furthermore, you can lock up a dividend yield of 8.11% right now. That’s a dividend that comes out each month, I might add. And it’s also important to note that while shares are down right now, it’s not due to any poor performance on the company’s part, with growth across the board during its latest earnings report.
Shares of NorthWest stock are down about 27% year to date, and, again, I’ll be buying more to lock in a high yield!
Cargojet
Finally, another stock I won’t sell, no matter what happens in the market, is Cargojet (TSX:CJT). Cargojet stock is actually one of the stocks out there that hasn’t been doing too badly during the last few months. And this comes from the company remaining a necessary part of today’s shipping needs.
Cargojet stock is the only overnight cargo airline in Canada. This has been incredibly beneficial in recent years, especially with the partnerships the company has made through Amazon and DHL. These partnerships have even been renewed, with DHL just renewing its partnership recently and expanding it to add more international destinations.
So, Cargojet stock is on the growth path, despite what might be believed about e-commerce slowing down. Cargojet seems to negate all those fears, with the company showing growth across its metrics during the latest earnings report. In fact, it went from a loss to profit of $83.4 million during the quarter!
While the dividend remains at just 0.92%, I’ll take it, given the growth the stock could provide. Shares are down 27% year to date but should bounce right back once recession fears are over.
