The best dividend stocks for 2023: Can we look to last year’s best-paying stocks?
After coming through what felt like the Red Wedding of 2022, to liken it to a Game of Thrones plot, this year many investors would be inclined to patiently cash out of the markets, but inflation is eroding purchasing power for Canadians, and putting their savings in a basic savings account will put them even further behind. It’s counterintuitive during these times to continue investing in assets that will help protect your purchasing power.
Dividend stocks can provide some level of predictable income to buffer market volatility, but there’s no guarantee. For example, last year, the iShares S&P/TSX Canadian Dividend Aristocrats Index ETF and Vanguard FTSE Canadian High Dividend Yield Index ETF were down 8.09% and 4.3%, respectively. And that’s marginally better than the broader S&P/TSX Composite Index, which posted a 8.5% loss in 2022. It appears more volatility will come in 2023.
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