3 Dividend Stocks to Buy on Sale

It has been difficult to escape the effects of inflation this year. Whether it’s in the grocery store or in your investment portfolio, rising inflation had a major impact on Canadians across the country in 2022.

Extreme volatility is just one example of how inflation affects the stock market. It’s no secret that investors despise uncertainty, which we’ve had no lack of this year.

Investors have been desperate to predict the direction in which interest rates will move. The result has been a year of volatility for investors, which unfortunately I’m not sure will slow down.

Building a passive income portfolio

Because I’m looking for more volatility in the short term, I’m looking for ways to prepare my portfolio for that. Boosting the defensive position with reliable stocks like utilities is one way to do this.

Another is through residual income. Fortunately, the TSX has plenty of high-yielding dividend stocks currently trading at opportunistic discounts.

When it comes to investing in dividend stocks, Canadian investors have choices. Whether you’re looking for a high return, a long payout streak, or both, the TSX has you covered.

I’ve compiled a list of three top dividend stocks that combine to make a perfect basket of passive-earning companies. Additionally, all three picks are trading at discounts, so now could be a good time to take a long-term position.

Brookfield Renewable Partners

as electricity Brookfield Renewable Partners (TSX:BEP.UN) Shareholders, I have enjoyed expanding my position several times during the year.

With a nearly 20% decline in 2022, it hasn’t been a great year for the energy stock. However, for a company with a lot of long-term growth potential in the renewable energy space, I don’t think it will be long before shareholders are back to above-average earnings.

The discounted price has boosted the company’s profitability. At today’s share price, Brookfield Renewable Partners’ dividend yield is nearly 5%.

There aren’t many dividend stocks with a market-leading track record like Brookfield Renewable Partners that also boast a dividend yield close to 5%.

Bank of Nova Scotia

When it comes to investing in dividend stocks, you can’t go wrong with Canadian banks. Whether you’re looking for a prime return or a long payout streak, the Big Five have got you covered.

At today’s share price Bank of Nova Scotia (TSX:BNS) is the most profitable of Canada’s major banks. It’s also one of only two Canadian banks to have a yield above 6% at the time of writing.

Along with a whopping 6% yield, the Bank of Nova Scotia’s dividend-paying streak is nearing a whopping 200 straight years.

Telus

Last on my list is the reliable telco company, Telus (TSX:T).

Excluding dividends, the nearly $40 billion company’s shares are roughly in line with the Canadian market in 2022. However, the dividend stock is down 20% from 52-week highs earlier this year.

While telecom stocks aren’t the most exciting industry, they do have a certain long-term growth element. The growth story of 5G technology is still largely in its infancy, which has the potential to propel companies like Telus to market-beating profits for years to come.

At the current share price, Telus’ dividend is over 5%.