Investing in stocks is not always about timing but about holding. Finding stocks you can buy and hold requires studying the business model, financial statements, cause of stock price decline, the company's financial flexibility to thrive during the crisis, and management's strategy to tackle the headwinds. I have identified five dividend aristocrats that have fallen to their lows despite strong fundamentals because of sector weakness.

Top five dividend aristocrats to buy now

A dividend stock becomes an aristocrat when it shows growth over decades and stability during a crisis. These are the stocks you can invest in your Registered Retirement Savings Plan (RRSP) and be assured of getting an inflation-adjusted passive income in all economic situations. If there is a significant crisis, these stocks will likely pause their dividend growth for a few years and resume when the dust settles.

Dividend aristocrats with yields above 6%

BCE – 8.8%

Speaking of dividend aristocrats, let us get the elephant out of the room. BCE's (TSX:BCE) tussle with the telecom regulator, followed by 6,000-plus job cuts, has not portrayed a good image. At the same time, BCE's aggressive price cuts in mobile plans were not welcomed by investors. Add to this, its high leverage because of its accelerated capital spending to roll out 5G infrastructure.

All this has put downward pressure on its free cash flow (FCF). Last year, the company used 113% of FCF to pay dividends. Despite this, it grew dividends per share by 3% in 2024. It is a challenging year for the telco as it is undergoing a restructuring. It is closing its low-returns businesses, like radio and electronic stores to focus on high-returns cloud, security, and digital advertisement business. The restructuring cost could reduce its 2024 FCF by 3 to 11% and balloon its dividend payout ratio beyond 110%. However, things have begun to settle with interest rate cuts and a pause on BCE's promotional pricing.

The telco has bounced back in past crises. It is well-positioned to withstand the current crisis and ride the 5G wave. You can take advantage of its stock price, down 38% from its peak, and lock in an 8.8% yield.

Enbridge – 7.3%

Enbridge (TSX:ENB) is in a better spot than BCE, with its dividend payout ratio within its targeted range of 60 to 70%. The pipeline company is completing the acquisition of three US gas utilities that are accretive to its FCF. While the acquisition will increase its debt, the pipeline operator will allocate resources to reduce debt in the first two years. Hence, the pipeline operator has not increased its dividend growth rate beyond 3% since the pandemic (from 10% pre-pandemic). Any acceleration in the dividend growth rate will likely come past 2025 once it has lowered its debt level.

The stock is a buy anytime between a $45-$50 stock price, as that can help you lock in over a 7% dividend yield.

CT REIT - 6.5%

CT REIT(TSX:CRT.UN) is among the few REITs that have been growing its distributions annually by 3% as it enjoys a 99.5% occupancy. It acquires, develops, and intensifies Canadian Tire stores. Since the parent occupies these stores, the REIT doesnât have to worry about finding a tenant or the tenant paying rent. The agreement between the two allows CT REIT to increase its rent by 1.5% annually. New and intensified stores also attract higher rent, allowing CT REIT to grow its distribution while reducing its payout ratio.

As for its debt profile, 99.7% of its debt is interest-only unsecured debt, and 100% of its debt is fixed rate. While the high interest rate did not impact its balance sheet, the decline in the fair market value of properties pulled down its unit price, inflating the yield to 6.5%.

Dividend aristocrats with yields below 6%

Beyond the above stocks, Canadian Tire is also a good addition to your passive income portfolio, with its decades of dividend growth. The retailer is offering a 4.9% yield. Canadian Utilities is another good addition with a 5.9% yield.

The post Here Are My Top 5 Dividend Aristocrats to Buy Right Now appeared first on The Motley Fool Canada.