There are a lot of options out there for income investors these days.

The market knows investors are starved for consistent yields, so it has delivered. Not only are companies becoming more and more likely to pay dividends these days—as a way to attract investor cash—but many of the various exchange traded funds, closed end funds, and other financial innovations now focus on paying dividends.

Ten years ago, products such as dividend ETFs, covered call funds, or funds that use leverage to invest in high-yielding assets barely existed. These days, they’re commonplace.

While it might seem like these types of investments are diversified, I’m not quite so sure. Take a junk bond fund as an example. Sure, the portfolio manager has done a nice job buying bonds in various sectors, but a big macroeconomic event would likely affect all bonds, no matter what sector they’re in. Thus, something like that isn’t really that diverse at all.

Plus, many investors don’t fully understand these products. I’m constantly amazed how many investors I run into that barely look past the current yield when analyzing a fund with many moving parts. Some of these products are so complex that I don’t think the average investor can even figure out what they’re invested in.

That’s a problem for obvious reasons. If you’re holding one or more of those complicated income products, might I make a suggestion? Instead of holding it, move your investment dollars into Telus Corporation (TSX:T)(NYSE:TU).

A simple, terrific business

You can’t get much simpler than Telus’s business. It provides wireless, Internet, home phone, and television services to millions of Canadians, with 13.9 million connections under its corporate umbrella.

For such a simple business, Telus has a terrific moat. It would take billions to just build a nationwide wireless network, never mind trying to replicate Telus’s other businesses. If you gave me $50 billion and told me to build another Telus, I’d return your money. No wonder every large wireless company worldwide is scared to enter the Canadian market.

It’s easy to argue that Telus has the best performance out of its peers as well. The company has done a terrific job minimizing the number of customers that are leaving it for other carriers, posting several consecutive quarters of less than 1% churn. That’s led to the best subscriber growth in the sector, at least in Canada.

And unlike its competitors, Telus is actually gaining television subscribers. The company has borrowed ideas from its wireless division to sell cable subscriptions, offering customers perks like a free video game system or television if they sign up for a three-year contract. The number of television subscribers has increased by more than 10% compared with last year.

Great business, great dividend

Investors are seeing the results of Telus’s solid results when they collect their dividend cheques.

Over the last five years, dividend growth has been terrific as the quarterly dividend has gone from $0.26 per share to $0.42. Management has also committed to increasing the dividend twice per year through 2016. Shares currently yield a generous 3.9% as well.

There aren’t many Canadian companies that can offer the same combination of current yield and dividend growth. Assuming a 10% hike in annual dividends—which is about what the company has averaged since 2010—investors would be looking at a yield on cost of 6.3% in just five years.

Telus is a good dividend choice. Add in the predictability of the business, its solid growth record, and reasonable valuation, and it’s easy to make the argument that the company belongs in every portfolio.

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Fool contributor Nelson Smith has no position in any stocks mentioned.