The ongoing macroeconomic uncertainties have led to a roller-coaster ride in Canadian stocks in 2022. Nearly six months ago, when stocks were trading close to their all-time highs, not many market experts predicted a market crash. However, growing economic uncertainties have dramatically changed investorsâ behaviour since then. In uncertain economic times like these, it becomes more important for investors to have some quality dividend stocks in their portfolio with a track record of consistently rewarding their investors with stable dividend income, irrespective of market conditions.
While the recent market selloff looks horrifying at first, it has made many fundamentally strong dividend stocks look undervalued. Given that, it could be the right time for investors to buy such dividend stocks at a bargain. In this article, Iâll highlight two of the best Canadian dividend stocks you can buy right now to earn reliable passive income, even in difficult economic phases.
Quebecor (TSX:QBR.B) is a MontrÃ©al-based telecommunications and media company with a market cap of about $5.8 billion. In September so far, this Canadian dividend stock has seen 11% value erosion, as it currently trades at $25.26 per share. At the current market price, it has an attractive annual dividend yield of around 4.8%.
In the second quarter, Quebecor reported a 1.4% YoY (year-over-year) drop in total revenue to $1.1 billion, as its wireline equipment revenue fell slightly. Despite facing a highly competitive environment, the companyâs continued focus on operational efficiencies and financial discipline helped it post a 4.6% YoY increase in its adjusted quarterly earnings to $0.68 per share.
Quebecor might face increased challenges in the short term as inflationary pressures take a toll on advertising spending. Nonetheless, its long-term growth outlook remains strong, given the companyâs continued focus on expanding its telecom services across Canada for its free cash flow and EBITDA (earnings before interest, taxes, depreciation, and amortization) expansion.
Northland Power stock
Northland Power (TSX:NPI) could be another great dividend stock in Canada to buy now, especially if youâre looking to generate stable passive income from stock investing. This Toronto-headquartered company owns and operates clean energy infrastructure assets in countries including Canada, the Netherlands, Germany, Latin America, and Spain.
It has a market cap of about $9.6 billion, as its stock trades with 8% year-to-date gains at $40.95 per share. At the current market price, Northland Power has a decent dividend yield of 2.9%. While this passive-income stock is continuing to outperform the TSX benchmark on a year-to-date basis, it has seen a 9% value erosion in September so far due mainly to a market-wide selloff.
The ongoing growth trend in Northland Powerâs financials looks solid, as it reported adjusted net earnings of $1.01 per share in the June 2022 quarter, reflecting a massive improvement over its adjusted net loss of five cents per share in the June 2021 quarter. You could expect Northlandâs financial growth to accelerate further in the long run as this offshore wind-focused firm continues to make new acquisitions to expand its global presence to take an early-mover advantage in the clean energy segment.
The post 2 Canadian Dividend Stocks to Buy Amid a Market Correction for Years of Passive Income appeared first on The Motley Fool Canada.
Before you consider Northland Power, you’ll want to hear this.
Our market-beating analyst team just revealed what they believe are the 5 best stocks for investors to buy in September 2022 … and Northland Power wasn’t on the list.
The online investing service they’ve run for nearly a decade, Motley Fool Stock Advisor Canada, is beating the TSX by 21 percentage points. And right now, they think there are 5 stocks that are better buys.
See the 5 Stocks
* Returns as of 9/14/22
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