In the midst of a stock market sell-off, finding safe and reliable investments can be challenging. However, dividend stocks offer a promising solution for those looking to protect and grow their wealth during turbulent times. By investing in well-chosen dividend stocks when their yields are high and share prices are low, investors can employ a strategy that has historically proven to be profitable. Here are two standout dividend stocks to consider for passive income during a market downturn: Realty Income and Enbridge.
Realty Income: A Pillar of Stability
Realty Income, a renowned Real Estate Investment Trust (REIT), stands out as a top choice for dividend investors seeking stability and reliable income. This REIT manages an extensive portfolio of 15,450 commercial properties, which are leased to over 1,500 different customers across 90 industries. Realty Income’s diversified investment approach includes properties leased to recession-resistant sectors such as grocery stores, drugstores, and discount retailers.
The company’s client roster includes major names like Walmart, CVS Health, and Dollar Tree, reflecting its solid foothold in essential retail sectors. This diversification helps reduce risks for shareholders, contributing to Realty Income’s impressive track record. For over 30 years, Realty Income has maintained occupancy rates of at least 96%, underscoring its reliability.
Realty Income’s commitment to its shareholders is evident in its dividend practices. The REIT has distributed dividends for 649 consecutive months and has consistently increased its dividend for 107 quarters in a row. Currently, Realty Income offers a solid dividend yield of 5.25%, making it an attractive option for those seeking steady passive income.
Enbridge: Capitalizing on Energy Infrastructure
Enbridge, a major player in the energy infrastructure sector, presents another compelling choice for dividend investors. With a vast pipeline network that transports approximately 30% of the crude oil produced in the U.S. and 20% of its natural gas consumption, Enbridge’s operations are crucial to the country’s energy infrastructure.
Enbridge’s business model is built on long-term, volume-based contracts that provide predictable cash flow, mitigating risks associated with commodity price fluctuations. This stability has allowed Enbridge to increase its cash distributions to investors for 29 consecutive years.
Looking ahead, Enbridge is well-positioned to benefit from several growth trends. The company is investing heavily in liquified natural gas (LNG) projects to meet rising demand in Europe and Asia. Additionally, Enbridge is expanding its focus on renewable energy sources, including wind and solar power.
A particularly exciting development for Enbridge is its involvement in the data center sector. The surge in demand for artificial intelligence (AI) services is driving the need for more electricity, much of which will be generated by natural gas power plants and renewable energy projects. Enbridge’s infrastructure is vital for connecting energy producers with data centers and other high-demand users, positioning the company for future growth.
Currently, Enbridge offers an impressive dividend yield of 6.68%, providing investors with an opportunity to benefit from its robust and expanding business.
The Benefits of Investing in Reliable Dividends
During a stock market sell-off, investing in reliable dividend stocks like Realty Income and Enbridge can offer both safety and substantial passive income. Realty Income’s consistent dividend payments and long-term track record make it a cornerstone for dividend investors seeking stability. Meanwhile, Enbridge’s strong position in energy infrastructure and its strategic investments in growth areas promise continued success and attractive returns.
For those looking to capitalize on current market conditions and build their passive income streams, these two dividend stocks represent compelling options worth considering.
