2 TSX Dividend Stocks to Buy for Income and Stability
The Motley Fool
Published Apr 07, 2021 11:52
Updated Apr 07, 2021 12:15
2 TSX Dividend Stocks to Buy for Income and Stability
Dividend stocks are some of the most important investments to own for the long term. You can find some stocks that pay all their earnings or other stocks that pay very little of their earnings. Whatever you choose, it’s important that at least some of your TSX stocks pay a dividend.
Sometimes these stocks can be neglected by investors. They often aren’t the most exciting investments like growth stocks. Nevertheless, it’s still paramount investors have a mix of resilient, dividend-paying stocks to complement their higher-risk growth stocks.
Some of the best stocks for stability are those that pay dividends, especially the Dividend Aristocrat stocks, which consistently increase their dividend payouts each year.
Here are two of the top TSX dividend stocks to buy for income and stability today.
A TSX telecom stock with an attractive dividend yield There are several industries to look for high-quality and resilient TSX dividend stocks. However, few industries are better than telecom.
The industry is perfect for long-term investors because it’s highly defensive but also offers major long-term growth, especially with the introduction of 5G technology.
There are a few high-quality dividend stocks to choose from in the telecom industry. However, the best stock in the industry for income and stability has got to be BCE Inc (TSX:BCE)(NYSE:BCE).
BCE is the biggest telecom in Canada, and its major size gives it a big competitive advantage. Plus, its wireless, wireline, and media segments are well integrated, offering a tonne of attractive synergies.
It’s one of the very best stocks in Canada when it comes to long-term stability. And because it’s such a cash cow, the stock is consistently returning cash to shareholders. The dividend is impressive, too, currently yielding over 6%. Plus, it will continue to grow each year.
The increased usage of more devices in the future coupled with the introduction of 5G across the board will see major growth for the industry long term.
So if you’re looking for a top TSX dividend stock to buy today, BCE is one of the very best.
A TSX utility stock for income and stability Another incredibly stable long-term TSX stock for investors to buy today is Fortis Inc (TSX:FTS)(NYSE:FTS). Fortis is a utility stock. Utility stocks are some of the best investments to make if you’re looking for defence and stability.
Not only are the services that utilities sell a staple of the economy, but they are also regulated, making it a very low-risk investment. Furthermore, Fortis specifically has a tonne of diversification about the jurisdictions it operates in.
The TSX dividend stock’s a perfect choice for those looking for a safe investment that will grow significantly and return capital to investors. It’s the perfect core portfolio stock.
Get The App
Fortis is also one of the oldest Dividend Aristocrats in Canada. It’s increased its dividend for 47 consecutive years, showing what a reliable company it can be for long-term investors.
Today that dividend yields roughly 3.7%. Plus, with Fortis trading roughly 10% off its target price, the TSX dividend stock offers an attractive potential return over the next year.
Bottom line Dividend stocks, especially ones that grow their payouts each year are a key component to long-term investing. So if you’re looking for some top TSX dividend stocks to buy today, I’d start with these two.
The post 2 TSX Dividend Stocks to Buy for Income and Stability appeared first on The Motley Fool Canada.
Fool contributor Daniel Da Costa owns shares of BCE INC. The Motley Fool recommends FORTIS INC.
The Motley Fool’s purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool Canada’s free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. Motley Fool Canada 2021
This Article Was First Published on The Motley Fool
Written By: The Motley Fool
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.