Source: Getty Images <\/p>\n
Written by Robin Brown<\/a> at The Motley Fool Canada<\/p>\n It may be time to position your portfolio<\/a> a little more defensively with some Canadian dividend stocks. Ever since April this year, stocks in Canada and the U.S. have been on a steady upward trajectory.<\/p>\n However, that trend could be due for a change. The economy is slowing, stock valuations are high, and the market appears a bit frothy. The stock market <\/a>could be at risk for a correction in the next few months.<\/p>\n If you are looking for some more defensive dividend stocks to hold during a market correction, here are three dividend stocks to buy in October.<\/p>\n Exchange Income Corporation (TSX:EIF<\/a>) is an interesting Canadian stock for a mix of income and capital appreciation. While its business is largely focused on aviation and aerospace, it also operates several niche industrial businesses.<\/p>\n Niche would be a good descriptor for this company. It operates niche air services for remote northern regions. While these are challenging to operate, they have little to no competition and are essential to the communities they serve. It just acquired Canadian North airline, which makes it a dominant provider of air services to northern communities.<\/p>\n The company has been delivering very good results in 2025. Last quarter, it delivered record revenue and adjusted net earnings. It also increased its outlook projections by 5%.<\/p>\n Exchange Income pays a $0.22 per share monthly dividend. That equates to a 3.5% dividend yield. This Canadian stock has raised that dividend 17 times over the past 20 years, so investors are likely to see their yield on cost rise over time.<\/p>\n Another Canadian dividend stock I would look to add today is Pembina Pipeline (TSX:PPL<\/a>). While it is one of the largest pipeline and midstream players in Western Canada, this stock has underperformed other major pipeline peers in 2025.<\/p>\n It faced some uncertainty over the re-contracting of a major pipeline. While that has been resolved, it will have some near-term effects on profitability. However, looking forward, the company looks very well-positioned.<\/p>\n It is a major processor of natural gas. With electricity demand rising, natural gas continues to be an important fuel for electricity production. There are rumours Pembina is nearing completion to power a data centre<\/a> complex in central Alberta.<\/p>\n It currently has one of only a few approved LNG terminals in construction. Demand for that throughput has been very high, even before it is built.<\/p>\n This Canadian stock has several catalysts for future growth. Though the market is not recognizing it. While you wait, you can earn a nice 5.3% dividend yield.<\/p>\n Another resilient Canadian dividend stock to hold in a downturn is First Capital REIT (TSX:FCR.UN<\/a>). With a market cap of $4 billion and 21.9 million square feet of space, it is one of the largest grocery-anchored retail landlords in Canada.<\/p>\n Its properties are in excellent locations. Consequently, it has a high 97% occupancy and it has enjoyed mid-single digit rental rate growth for years. Right now, the company is working to maximize its assets, sell-off non-core assets, and improve its balance sheet. The REIT has made good progress this year.<\/p>\n This is significantly de-risking its portfolio. The REIT has an improving balance sheet and rising cash flows. It could start growing its monthly dividend soon. Right now, First Capital yields 4.6%. This Canadian stock also trades at a big discount to its private market value, so you collect a nice yield while you wait for the value to materialize.<\/p>\n The post Dividend Investors: 3 Canadian Stocks to Buy in October<\/a> appeared first on The Motley Fool Canada<\/a>.<\/p>\n Before you buy stock in Pembina Pipeline Corporation, consider this:<\/p>\n The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now\u2026 and Pembina Pipeline Corporation wasn\u2019t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.<\/p>\n Consider MercadoLibre, which we first recommended on January 8, 2014 \u2026 if you invested $1,000 in the \u201ceBay of Latin America\u201d at the time of our recommendation, you\u2019d have $22,332.38!*<\/p>\n Now, it\u2019s worth noting Stock Advisor Canada\u2019s total average return is 105%* \u2013 a market-crushing outperformance compared to 73%* for the S&P\/TSX Composite Index. Don\u2019t miss out on our top 15 list, available when you join Stock Advisor Canada.<\/p>\n See the 15 Stocks <\/a><\/p>\n * Returns as of October 9th, 2025<\/p>\n More reading<\/p>\n Fool contributor Robin Brown<\/a> has no position in any of the stocks mentioned. The Motley Fool recommends First Capital Real Estate Investment Trust and Pembina Pipeline. The Motley Fool has a disclosure policy<\/a>.<\/p>\n 2025<\/p>\n","protected":false},"excerpt":{"rendered":"Source: Getty Images Written by Robin Brown at The Motley Fool Canada It may be time to position…\n","protected":false},"author":2,"featured_media":249140,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[49,48,85385,41513,16989,16988,116401,18182,94973,44,116400,121,8645,13845],"class_list":["post-249139","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-ca","tag-canada","tag-canadian-dividend-stocks","tag-canadian-stock","tag-dividend-stock","tag-dividend-stocks","tag-exchange-income-corporation","tag-fool-canada","tag-market-correction","tag-news","tag-pembina-pipeline","tag-stock-market","tag-stock-valuations","tag-western-canada"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/249139","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=249139"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/249139\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/249140"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=249139"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=249139"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=249139"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}