2 TSX Dividend Stocks I’d Hold Through a Volatile Summer

Summer is coming, and the temperature isn’t the only way Canadians might feel the heat. After what’s been a volatile year in the markets, the summer doesn’t look much better and could punish high-growth stocks. Especially with rate fears, trade headlines, and weaker consumer spending all coming together.

That’s why investors might want to consider moving towards companies with stable cash flow, defensive industries, and dividends backed by essential services. So today, let’s look at one offering stability and steady growth, while the other offers a turnaround opportunity with major income potential.

EMA

First, there’s Emera (TSX:EMA), which operates regulated electric and gas utilities, creating predictable cash flow during uncertain markets. The company currently serves 2.6 million customers across Canada, the U.S., and the Caribbean through electric and natural gas utilities. What’s more, about 95% of earnings come from regulated utility operations, which reduces volatility.

But the company isn’t just standing still. Recently, it completed major investments in grid modernization and renewable infrastructure while continuing to grow rate base assets. Now, management expects its rate base to grow from about $41 billion in 2024 to $57 billion by 2029. Furthermore, it plans to invest roughly $20 billion into infrastructure between 2025 and 2029.

That’s on top of stellar earnings, with Emera stock reporting adjusted EPS came in around $1.03 versus $0.76 the year before in Q1 2026. Full-year 2025 adjusted earnings per share (EPS) was about $3.10, up from $2.98 in 2024. Meanwhile, revenue remained strong due to regulated asset growth and customer increases. Investors thus get all this, plus a dividend yield of 4.1% at writing, which Emera stock has increased for 18 consecutive years!

BCE

I know, I know. BCE (TSX:BCE) hasn’t exactly been a golden goose lately, but that could be exactly why investors want to get into it right now. BCE stock became one of the market’s most controversial income stocks after its dividend cut, but the reset may have improved long-term sustainability. Now, Canada’s largest communications company with wireless, broadband, fibre internet, and media assets is down 43% in the last five years, but finally back on the rise, up 6% in the last year.

The cut helped, it can’t be denied, and even now the dividend yield sits at 5.2%. BCE stock also partnered more aggressively on fibre and infrastructure spending to preserve balance sheet flexibility. Now investors are starting to see improvements, and it’s coming up in the numbers.

In Q1 2026, revenue was roughly $5.9 billion, with adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) relatively stable despite competitive pressure. Free cash flow improved after reduced capital spending guidance. And now, BCE stock trades at just 5 times earnings, making it incredibly cheap for long-term investors.

Bottom line

The summer can be volatile, but both of these stocks look either stable or stabilizing, creating income and growth for investors. Emera stock offers the dependability of a utility, while BCE stock is a turnaround story. Both can also create income through even a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTBCE$33.33210$1.75$367.50Quarterly$6,999.30EMA$72.5296$2.92$280.32Quarterly$6,961.92

So while volatile markets are tough, they also often reward durable cash flow and reliable dividends over trending stocks. And both of these stocks are prime choices, remaining essential no matter how nuts the markets get this summer.

The post 2 TSX Dividend Stocks I’d Hold Through a Volatile Summer appeared first on The Motley Fool Canada.

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More reading

• The Bank of Canada Held Rates: Here’s What I’d Buy in a TFSA Now
• 2 Top Dividend Stocks to Buy in May
• What to Know About Canadian Utility Stocks in 2026
• 3 Canadian Dividend Stocks Yielding Up to 6.5% Worth Owning When Growth Falls Out of Favour
• Don’t Buy BCE Stock Until This Happens

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.