It could be time to place your portfolio a little bit extra defensively with some Canadian dividend shares. Ever since April this 12 months, shares in Canada and the U.S. have been on a gentle upward trajectory.
Nevertheless, that pattern might be due for a change. The financial system is slowing, inventory valuations are excessive, and the market seems a bit frothy. The inventory market might be in danger for a correction within the subsequent few months.
If you’re searching for some extra defensive dividend shares to carry throughout a market correction, listed here are three dividend shares to purchase in October.
Change Earnings: A diversified Canadian inventory
Change Earnings Company (TSX:EIF) is an attention-grabbing Canadian inventory for a mixture of earnings and capital appreciation. Whereas its enterprise is basically centered on aviation and aerospace, it additionally operates a number of area of interest industrial companies.
Area of interest could be an excellent descriptor for this firm. It operates area of interest air companies for distant northern areas. Whereas these are difficult to function, they’ve little to no competitors and are important to the communities they serve. It simply acquired Canadian North airline, which makes it a dominant supplier of air companies to northern communities.
The corporate has been delivering superb ends in 2025. Final quarter, it delivered document income and adjusted internet earnings. It additionally elevated its outlook projections by 5%.
Change Earnings pays a $0.22 per share month-to-month dividend. That equates to a 3.5% dividend yield. This Canadian inventory has raised that dividend 17 instances over the previous 20 years, so traders are more likely to see their yield on price rise over time.
Pembina Pipeline: A Canadian infrastructure chief
One other Canadian dividend inventory I’d look so as to add at present is Pembina Pipeline (TSX:PPL). Whereas it is likely one of the largest pipeline and midstream gamers in Western Canada, this inventory has underperformed different main pipeline friends in 2025.
It confronted some uncertainty over the re-contracting of a significant pipeline. Whereas that has been resolved, it would have some near-term results on profitability. Nevertheless, trying ahead, the corporate seems to be very well-positioned.
It’s a main processor of pure fuel. With electrical energy demand rising, pure fuel continues to be an essential gasoline for electrical energy manufacturing. There are rumours Pembina is nearing completion to energy a knowledge centre advanced in central Alberta.
It at present has one in every of only some permitted LNG terminals in building. Demand for that throughput has been very excessive, even earlier than it’s constructed.
This Canadian inventory has a number of catalysts for future progress. Although the market will not be recognizing it. When you wait, you possibly can earn a pleasant 5.3% dividend yield.
First Cap: A Canadian actual property inventory
One other resilient Canadian dividend inventory to carry in a downturn is First Capital REIT (TSX:FCR.UN). With a market cap of $4 billion and 21.9 million sq. ft of area, it is likely one of the largest grocery-anchored retail landlords in Canada.
Its properties are in wonderful places. Consequently, it has a excessive 97% occupancy and it has loved mid-single digit rental charge progress for years. Proper now, the corporate is working to maximise its belongings, sell-off non-core belongings, and enhance its steadiness sheet. The REIT has made good progress this 12 months.
That is considerably de-risking its portfolio. The REIT has an enhancing steadiness sheet and rising money flows. It may begin rising its month-to-month dividend quickly. Proper now, First Capital yields 4.6%. This Canadian inventory additionally trades at a giant low cost to its personal market worth, so that you accumulate a pleasant yield when you look forward to the worth to materialize.
