- The TSX main index fell by almost 11 per cent quarter-to-date.
- BCE stock spiked by over four per cent year-over-year.
- Royal Bank is set to dole out C$ 1.28 as a quarterly dividend on August 24.
Canada saw its primary stock market index slip into the correction territory on Monday, June 13, after it fell 10.6 per cent below its record closing high in March. On Tuesday, the S&P/TSX composite index tumbled further to close at 19,548.51, which is said to have been its lowest closing point in over a year.
The TSX main index also fell by almost 11 per cent quarter-to-date.
This market environment has left investors worried as they see some of their investment holdings in red. Given the inflationary pressure and rate hikes, declines could prevail for a while, fueling more concerns.
Such market conditions can send investors hunting for sturdy dividend stocks that could weather economic downfalls and are available at relatively discounted prices at the moment.
Here are two TSX dividend stocks to explore if you aim to enhance your portfolio income.
BCE Inc (TSX: BCE)
BCE is one of Canada’s biggest and oldest communication service companies, with wireless and fibre networks spread nationwide. The company is said to be strategically working with Amazon Web Series (AWS) to expedite innovation in fifth generation (5G) network and cloud adoption.
BCE’s dividend yield was almost six per cent, reflecting its annual dividend payment relative to its prevailing stock price. The internet service company will disburse a quarterly dividend of C$ 0.92 on July 15, it said.
BCE stock was up by about five per cent from its one-year low of C$ 60.34 (June 14, 2021) on Tuesday. The 5G stock has spiked by around four per cent year-over-year (YoY).
According to Refinitiv, BCE broke its support level this month and seems to be on a downward trajectory, with a Relative Strength Index (RSI) value of 24.22 (June 14).
Royal Bank of Canada (TSX: RY)
Royal Bank held a dividend yield of about four per cent. The financial institution is scheduled to dole out C$ 1.28 as a quarte-basedy dividend on August 24.
Royal Bank recently entered into an agreement with data network Plaid that enable people to connect their financial accounts with over 6000 applications and services. Under the agreement, Royal Bank’s clients will be given the option to share financial data securely on the Plaid network through a direct application programming interface (API).
Stocks of Royal Bank of Canada were up by roughly two per cent from a 52-week low of C$ 124.08 (July 8, 2021). Refinitiv information indicates a bearish trend as this bank stock has breached its support levels this year. Its RSI value was 33.86 on June 14.
2 best TSX dividend stocks to buy after recent correction: BCE & RY
While BCE and Royal Bank seem to be on a bearish trend currently, their dividend payout history could be something to consider. These TSX dividend stocks are also less cyclical in nature, meaning they are likely to be less impacted by market downturns.
Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.