Investing in the Canadian stock market has been challenging in recent times, with short-lived bursts of bullishness followed by a lack of substantive gains in the S&P/TSX Composite Index. Volatility has remained a key theme for investors throughout the year, preventing the market from reaching all-time highs.
However, despite the volatility, there are still opportunities for long-term investors to capitalize on. Instead of loading up on growth stocks, which may carry more risk and uncertainty, one strategy is to invest in reliable dividend-paying companies.
Two top dividend stocks that are well-suited for uncertain market conditions are Brookfield Renewable Partners (TSX:BEP.UN) and Fortis (TSX:FTS).
Brookfield Renewable Partners is a global leader in the renewable energy sector and offers instant diversification in this growing space. Although the stock is down about 40% from its all-time highs, it has delivered a remarkable 70% return over the past five years, outperforming the broader market. Additionally, the stock currently offers a dividend yield above 5%.
Fortis, on the other hand, operates in the utility sector. While it may not be the most exciting space to invest in, utility stocks tend to exhibit lower volatility and more stability. Demand for utilities remains fairly stable regardless of the economy’s condition. Fortis provides low levels of volatility and a 4% dividend yield, making it an attractive option for risk-averse investors.
Amidst uncertain market conditions, it is essential to focus on companies with long-term growth potential. By investing in dividend stocks like Brookfield Renewable Partners and Fortis, investors can find opportunities to weather market pullbacks more comfortably and make sound investment decisions.
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