Trump’s Tariffs Are Here: This 11.3% Divdiend Stock Is a Safe Haven

Overall, these tariffs are going to be rough on Canadians. But there are still some Canadian stocks offering protection.

| More on:
Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.

Source: Getty Images

In the ever-changing world of global trade, investors have grown increasingly concerned about how market shifts could impact their portfolios. With President Trump introducing new tariffs, uncertainty has spiked, sending ripples through various sectors. These trade tensions can lead to market volatility, particularly for industries that rely on global supply chains.

But for those looking to shelter their investments from the storm, BCE (TSX:BCE) stands as a rock-solid choice. With its defensive business model and high-yield dividend, this telecom giant remains a safe haven in an unpredictable economic climate.

Created with Highcharts 11.4.3Bce PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

A defensive sector

BCE stock’s appeal as a defensive stock stems from its dominant position in Canada’s telecommunications sector. The company provides essential services, including internet, mobile, and television, which consumers and businesses rely on regardless of economic conditions. Unlike cyclical stocks that tend to struggle during downturns, BCE stock enjoys stable demand, making it a reliable choice for investors seeking consistency. Even as new tariffs create uncertainty in the broader market, BCE’s core business remains resilient, ensuring continued cash flow and steady returns.

One of BCE stock’s strongest selling points is its impressive dividend yield. As of writing, the company boasts an 11.3% dividend yield, making it one of the most attractive income-generating stocks on the TSX. For income-focused investors, this means a reliable stream of passive earnings — a critical advantage in times of market turmoil. Plus, BCE stock has a long history of maintaining and growing its dividend, reinforcing its status as a dependable pick for those seeking stability and long-term gains.

What to watch

Of course, dividend investors should always assess whether a company’s payout is sustainable. BCE stock’s recent earnings report, released in late 2024, showed some signs of financial pressure. The company reported operating revenues of $5.971 billion for the third quarter (Q3) of 2024, a slight decline of 1.8% year over year. This was largely due to a slowdown in product revenue, which fell 14.3% as consumer electronics demand weakened. However, BCE made up for this shortfall with strong cost-cutting measures. This led to a 2.1% rise in consolidated earnings before interest, taxes, depreciation, and amortization (EBITDA). Plus, BCE had a margin improvement to 45.6% — its best in over three decades.

Despite revenue fluctuations, BCE stock’s financial foundation remains solid. The company continues to generate significant cash flow, with operating cash flow sitting at $7.48 billion over the trailing 12 months. This is crucial for sustaining dividend payments and funding future growth initiatives. While BCE stock does carry a substantial debt load of approximately $40 billion, it maintains a strong position in the market, allowing it to manage its financial obligations effectively.

Future outlook

Looking forward, BCE is set to report its Q4 2024 earnings on February 6, 2025, with analysts expecting earnings per share of around $0.51. While this represents a modest year-over-year decline of 8.93%, the broader picture remains positive. The company has been investing heavily in expanding its fibre-optic network, a move that will not only enhance its service quality but also support long-term revenue growth. BCE’s continued investment in 5G infrastructure also positions it well for future profitability as more consumers and businesses adopt next-generation connectivity solutions.

For those looking to invest in a company that can weather market uncertainties, BCE stock is an ideal choice. Its strong dividend, stable cash flow, and strategic growth initiatives provide a level of security that many other stocks lack in today’s unpredictable environment. While tariffs and other economic factors may continue to create turbulence in the broader market, BCE’s core business remains steadfast. Whether you’re seeking long-term growth or reliable passive income, BCE offers the kind of stability that every investor can appreciate.

Bottom line

In times of economic uncertainty, it’s crucial to have solid investments that can withstand market headwinds. BCE stock is one such company. With its high dividend yield, consistent earnings, and strong market position, it remains a top pick for investors seeking both security and income. As Trump’s tariffs reshape the global trade landscape, BCE’s defensive qualities make it an even more compelling investment choice. So, while the broader market grapples with volatility, consider anchoring your portfolio with BCE. An essential service provider that continues to deliver regardless of what’s happening in the world.

Should you invest $1,000 in Deutsche Bank right now?

Before you buy stock in Deutsche Bank, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Deutsche Bank wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,345.77!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 24 percentage points since 2013*.

See the Top Stocks * Returns as of 4/21/25

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.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Doctor talking to a patient in the corridor of a hospital.
Dividend Stocks

This Dividend King Paying 7.5% in Monthly Income Is a Must-Have

This high-yield TSX stock might not be a textbook Dividend King, but its reliable monthly payouts and improving financials make…

Read more »

path road success business
Dividend Stocks

How to Invest $50,000 of Tax-Free Cash as Canada-US Trade Uncertainty Escalates

Few Canadian stocks are as easy a choice as this one, making it perfect during volatile periods.

Read more »

monthly desk calendar
Dividend Stocks

How I’d Generate $200 in Monthly Income With a $7,000 Investment

Want to establish $200 in monthly income (or even more?) Here's an easy way to start today that will provide…

Read more »

Printing canadian dollar bills on a print machine
Dividend Stocks

Got $25,000? Turn it Into $250,000 in a TFSA as the Canadian Dollar Rises

Investing doesn't have to be risky or difficult, especially with this top stock.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Where Will Loblaw Be in 3 Years?

Loblaw (TSX:L) stock could be a stellar performer as tariffs and headwinds move in on Canada's economy.

Read more »

customer uses bank ATM
Dividend Stocks

Where Will National Bank Be in 5 Years?

National Bank of Canada (TSX:NA) stock still looks like a great deal at these levels.

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

The Smartest Industrial Stock to Buy With $3,000 Right Now

Aecon is a value stock that's benefiting from strong infrastructure spending today and in the years to come.

Read more »

chart reflected in eyeglass lenses
Dividend Stocks

This Stock Down 30% Could Be the Bargain of the Decade

With this impressive Canadian growth stock trading 30% off its 52-week high, it might be the best bargain we've seen…

Read more »