2 unstoppable dividend stocks to buy when there’s a stock market sell-off

Yes, I’m well aware that growth investors have had their day in the sun (or years), with growth stocks essentially outperforming dividend stocks for fifteen years. That’s true for most of the world’s developed markets, and it’s a trend that many expect to continue.

There are good reasons for this. Our economy has become much more technologically dependent worldwide. And given rising inflation and the concerns many investors have that their savings won’t keep up with the ever-rising costs of health care, food and housing, this is a reasonable perspective.

That said, I would also argue that many top dividend stocks have a much more solid balance sheet and can position a portfolio much more defensively during periods of turmoil. For those who are more bearish or cautious at the moment, here are two top Canadian dividend stocks that I think are worth considering.

Fortis

With a dividend yield of only 3.6% Fortis (TSX:FTS) is a dividend stock that many investors don’t necessarily buy just for its yield. That said, this is a company I still come back to as a top dividend pick for a number of reasons.

First, as a leading North American utility giant, Fortis’ millions of residential and commercial customers, many locked into long-term regulated contracts with fixed increases over time, provide incredible cash flow stability. And with the rise of AI and other energy-hungry technologies, Fortis can benefit as its pricing power improves alongside rising demand.

These regulated revenue streams also provide incredible cash flow stability for Fortis, which the company has used to both pay down debt and improve its balance sheet, but also to return more and more capital to shareholders. In fact, the company has done this every year, increasing its dividend annually for over fifty years.

Equal parts a growth, value, defensive and income option, Fortis is a dividend stock that still looks like a screaming buy right now, even after its recent run.

Scotiabank

With one of the highest dividend yields among major Canadian banks (and even some small and mid-sized banks), Bank of Nova Scotia (TSX:BNS) remains one of my top picks in this sector for those looking for upfront returns.

This financial giant’s 4.4% dividend yield is impressive, and even more impressive when investors look at the rally this stock has seen in recent months. Moving from a low of around $60 per share to around $100 per share at the time of writing, Scotiabank is pulling out all the stops as investors look for ways to drive strong lending growth in Canada and internationally.

I think Scotiabank’s solid balance sheet, above-average yields for a traditionally high-yield sector, and many global growth opportunities amid weakness, position this company well as a potential addition to the portfolio.

With plenty of dividend growth likely to come as revenue and profits continue to rise, Scotiabank is a top option for those looking to create meaningful and consistent passive income for retirement.