Despite a recent market rally, stocks are still generally trading lower across the board. Dividend TSX stocks have been no exception, and some are reaching attractive buying points.
While short-term volatility can be cause for concern, long-term investors shouldn’t fret. If you plan to buy and hold a stock for years to come, this turbulence will be nothing but a blip on the radar in hindsight.
In fact, most bear markets last about 12 months, and then stocks start to recover and surpass previous highs. So, long-term investors can now start to scout out dividend TSX stocks they’d like to add to their long-term portfolios.
Today, we’ll look at two stocks sporting attractive dividends that will whet the appetites of long-term investors.
Fortis generates its revenues almost entirely from regulated operations. What this means is that its cash flows are nearly set in stone, and it generally doesn’t experience hiccups in demand.
The company is also known for paying a juicy and reliable dividend to its investors. Plus, it has a great track record for increasing its dividend over time.
With the power of compounding and dividend re-investing taken into account, investors can build a mass of wealth over time by investing in a stock like Fortis.
As of writing, Fortis is trading at $54.23 and yielding 3.52%. It’s nearly recovered to its early March price levels, as its defensive characteristics have attracted investors during times of volatility.
If you’re looking for a solid company with stable and reliable cash flow to invest in, Fortis is one of the strongest options around.
Brookfield Renewable (TSX:BEP.UN)(NYSE:BEP) is a Toronto-based company that owns various renewable power assets. It creates power through a wide array of renewable methods, including wind, solar, hydroelectric, and more.
If you’re thinking for the long term, Brookfield is looking like it’s well positioned for the future. More and more, the world is moving towards green energy and reducing emissions, and Brookfield is getting a headstart on putting infrastructure in place to be a major player in the renewable energy space.
As of writing, this dividend TSX stock is trading at $65.74 and yielding 4.42%. Like Fortis, it’s now closing in on its early March price levels. The stock was trading as high as $75.53 back on February 19.
If you think the future of energy is in the renewable space, then Brookfield could be the right pick.
With a dividend of 4.42%, investors stand to rake in a hefty dividend. An investment of $20,000 would generate nearly $900 in dividends in a single year.
Strategy for dividend TSX stocks
Fortis and Brookfield both offer great dividends to investors. Now, Fortis might be considered the more tried-and-true business, while Brookfield is entering a new space.
So, Brookfield might have more room to grow if it can solidify itself as a top player in the renewable energy sector.
Either way, investors can bank on a solid yield from either of these dividend TSX stocks.
This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Jared Seguin owns shares of Brookfield Renewable Partners.