Dividend stocks are a great place to weather the recent tariff tumult. Even though stocks may fluctuate, you can still collect a steady income stream. That can help offset losses in your portfolio when the market turns for the worst.
Luckily, Canada is chock-full of great dividend stocks. The best dividend stocks are those that predictably and regularly increase their annual dividends. If you are looking for solid dividend stocks to hold right now, here are four to consider buying now.
GRT.UN: A REIT for dividend-growth
The first dividend-growth stock to look at now is Granite Real Estate Investment Trust (TSX:GRT.UN). With industrial properties across Canada, the United States, and Europe, it is one of the largest REITs listed on the TSX.
Granite has grown its annual distribution for 14 consecutive years. It yields 5% right now. Ordinarily, this stock trades with an approximate 4% yield. But REITs have been beaten down in the past year. You can pick up some incredible bargains. Granite is one of those bargains.
Granite has a very strong balance sheet, high-quality tenants, long-term leases, and strong occupancy (over 95%). For value and income, this is a great stock to buy today.
CNQ: A dividend legend in Canada
Another stock for strong dividend growth is Canadian Natural Resources (TSX:CNQ). It has grown its dividend for 25 consecutive years. The most amazing fact is that its dividend has compounded by a 21% growth rate.
Canadian Natural is the GOAT (greatest of all time) of Canadian energy production. Not only is it the largest energy producer, but it is also one of the most efficient and low-cost producers. While energy prices have dropped, recent acquisitions are going to contribute to strong free cash flow generation.
Canadian Natural’s stock has fallen about 11.75% in the past year. You can buy this stock with a 5.5% yield. It looks like an attractive time to add this dividend-growth legend.
FTS: As safe as they come
Fortis (TSX:FTS) is another great Canadian passive-income stock. It has grown its dividend for 51 consecutive years.
Investors have been flocking to this stock for its safe qualities. That has pushed up the stock price a bit. Its yield has recently come down. It trades with a 3.8% dividend yield today.
However, if it is safety you want, it is safety you will get. The company has an incredibly solid regulated utility business. Fortis has an excellent balance sheet and a prudent management team. It expects to grow earnings by a mid-single-digit rate, and the dividend should follow.
ATD: Rapid dividend growth for investors
Alimentation Couche-Tard (TSX:ATD) only yields 1.17%. However, it has compounded its annual dividend by a 20.5% growth rate over the past decade. Its dividend per share is up 522% in that time!
Recently, Couche-Tard’s stock has been under pressure. A weakening economy has slowed demand for cigarettes, premium alcohol, and higher-margin food products. The good news is the company just announced a quarter where it returned to modest growth.
The company is looking to take over the 7-11 convenience chains. The deal could vastly expand its global footprint and provide attractive accretive growth (if it gets it for the right price). It’s a really well-managed business that trades at a decent valuation right now.