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Dividend Investing: 2 TSX Stars to Watch

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As the market continues to slowly recover, long-term buying opportunities are still abundant. Specifically, some stocks perfect for dividend investing can be had for decent value.

Of course, there’s the potential for another market crash sometime in the near future. However, long-term investors shouldn’t be overly concerned with short-term hiccups in the market.

Instead, they can focus on finding healthy and stable stocks with reliable and juicy dividend yields.

The reliability of the stock’s yield is especially important in times like these, where there are many financial challenges imposed on businesses.

Today, we’ll look at two dividend investing stars that can deliver results for long-term investors.


Royal Bank of Canada (TSX:RY)(NYSE:RY) is a major Canadian bank and Canada’s largest bank by market cap. It offers financial products and services to customers worldwide.

There’s certainly no denying that RY has been hit hard this year given the current conditions. However, it posted better than expected results in its most recent earnings report and appears to be recovering quite well.

The stock is trading at $99.73 as of this writing, which is almost back to where it started the year at. This dividend investing gem is also yielding 4.33% as of this writing.

Going forward, RY has a strong balance sheet and is well capitalised. As such, investors can have confidence in the stock’s stability and its yield.

With a yield of 4.33%, RY has a payout ratio of only 54.76%. This figure is more than manageable for a stock like RY.

Plus, this dividend investing star has one of the best track records around when it comes to maintaining its yield. Plus, the bank has access to sufficient support and liquidity that near-term downside risk shouldn’t be scary for long-term investors.

Given the yield sits at 4.33% as of this writing, investors can now lock in a solid yield from a TSX giant with RY.


Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is another major bank in Canada. It has strong footing in Canada as well as Latin America.

Similar to RY, BNS has had its fair share of challenges this year. However, it looks well-positioned to deliver strong results for the long term and has long been known as a reliable dividend star.

When looking for dividend investing stocks, it’s hard to ignore BNS’ 6.38% yield. That kind of yield attached to a big name like BNS makes for an attractive buying opportunity.

Of course, BNS’ exposure to the Latin American economies could mean a bumpy road is ahead in the short term, but over the long term this position has potential to be a major driver of growth.

If you’re looking for a reliable bank stock with a massive yield, BNS is a great option. It might not be quite as stable and established as RY, but its great yield can make up for that for a lot of investors.

Dividend investing strategy

If you’re looking to build a long-term dividend investing plan, both RY and BNS are worth consideration. Both stocks offer investors strong yields and long-term stability.

While there could still be some turbulence ahead in the near term, both stocks are well-positioned for long-term success and can deliver great returns over a long investment horizon.

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Fool contributor Jared Seguin has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA.

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