The market rout is a gift for income seekers

Would you recommend buying dividend stocks now, or do you think the market could fall further if the coronavirus spreads and the economy takes a major hit?

For example, shares of Capital Power Corp. plunged about 34 per cent through the first four days of the week. Yet the risk from coronavirus to Capital Power’s business – generating electricity from coal, natural gas, wind, solar and other sources – is “remarkably low,” Mr. McCoubrey said. As of Friday early afternoon, Capital Power’s shares had rebounded slightly but were still yielding an attractive 7.9 per cent.

Mr. McCoubrey said valuations are the most attractive they’ve been in “many, many, many years,” but he added that they could get even more attractive in coming weeks if coronavirus fears cause more indiscriminate selling. “Leases will be abided by, rent will be paid and cheap mortgage debt is readily available for those that have maturities coming up," Mr. Rodrigues said. He also doesn’t see any risk of REITs cutting their distributions in the near term, although REITs with heavy exposure to Alberta could be facing greater risk if oil prices remain low for an extended period.

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