Passive-income investors seeking consistent payouts, steady appreciation, and deep value shouldn't flinch at the first signs of September volatility. Undoubtedly, as longer-term investors with five or more years to invest, market corrections and worsening sell-offs can be a good thing.

That is, if you take advantage by buying bargains on weakness and don't check in too often on your portfolio's value on any given day!

Indeed, the more we start viewing stocks as partial ownership of businesses and less as mere abstract tickers and numbers on a screen, the likelier that investors will exercise more discipline, even in the heat of the sudden and most horrid of market pullbacks.

Of course, market plunges can feel much worse when you listen to the bears that come out with their downside projections.

Timing the market is too hard: Buy shares of wonderful companies on weakness instead

Though the folks attempting to time the market over on the monthly are smart and mean well, it's tough to nail down the market's next move. In essence, it's a coin toss. And when things feel the worst (think stocks dropping with no bottom in sight and economic data flashing red), it tends to be a better time to put a bit of new money to work. Indeed, it's hard to act contrarian when you've got herds of investors willing to part with their stocks for less than they bought them.

However, the potential rewards of going against the grain can be high. And with the TSX Index off mildly from its highs, I think that investors may have a shot at landing intriguing dividend bargains while interest rates are still on the high side.

Undoubtedly, the rate cuts have started in Canada, but they're probably going to be a heck of a lot lower by this time next year. And with that, you shouldn't expect today's yields on top passive-income plays to be nearly as bountiful.

Arguably, the path of least resistance for their shares is higher. And, as you may know, higher share prices tend to mean lower dividend or distribution yields, assuming no dividend hikes are considered. Now, look at one of the most exciting passive-income opportunities on the TSX Index.

Royalty in Canadian banking

Enter Royal Bank of Canada (TSX:RY), which recently hit new all-time highs of $166 and change per share. Indeed, the banks have been weighed down in this economic environment for quite some time. And while not all the Canadian banks are taking off, I think that shares of RY stand out in a big-time way as they go parabolic while some of its peers stay stuck in a rut, down by double-digit percentage points.

Indeed, the variance in performance of the big banks hasn't been this notable in quite a while. Though each bank has its unique slate of issues and opportunities, Royal Bank remains one of the no-brainer buys, even on strength. Why? It's an incredibly high-quality bank that's demonstrated far better resilience amid the last few years of rocky industry pressures.

Additionally, it's made a genius move by scooping up HSBC's Canadian banking assets. As a domestic banking juggernaut with a 3.46% dividend yield and a mild 14.78 times trailing price-to-earnings (P/E) multiple, RY stock should be a top pick in the banking scene. I think the stock has legs to take it to even higher highs. And while I'm no fan of chasing parabolic rallies, I believe the valuations make more sense than some of its underperforming rivals.