When looking for ways to invest for the long term, picking up shares of dividend superstars is a sound path to take. Over time, these stocks tend to deliver great total returns for investors with consistent and stable dividends compounding over time.
Of course, today’s economic climate is volatile, and there’s sure to be tough sledding ahead. So, it’s especially important to seek out stocks that have the strength to weather the storm. Even the juiciest of dividends are useless if they’re due to be cut.
Today, we’ll look at three TSX dividend superstars that are offering investors great yields.
Telus (TSX:T)(NYSE:TU) is the principal owner of Telus Communications, a major player in the Canadian telecommunications space. It offers services to its customers ranging from TV, mobile phone, and internet to entertainment and healthcare.
Telus is a Dividend Aristocrat that has long been committed to providing steady and substantial dividend growth to investors. Even during these tough times, it has remained optimistic about dividend-growth targets moving forward.
With its strong positioning in the digital healthcare space, Telus is only making its revenue sources more robust. Investors can get excited as Telus continues to pick up steam and snag more and more market share in key areas.
As of this writing, Telus is trading at $22.70 and yielding 5.13%. So, investors can scoop up shares of this dividend superstar with a juicy yield attached.
Bank of Montreal (TSX:BMO)(NYSE:BMO) is one of Canada’s major banks and has a substantial presence in the U.S. as well. It offers a wide array of products and services to its commercial and individual customers alike.
BMO is another outstanding dividend superstar with a great track record for paying its dividend. In fact, BMO has the longest dividend streak in Canada, having paid a dividend every single year since 1829.
That means through all the highs and lows the world has seen since then, BMO has remained committed to providing value to its investors. This dividend superstar continues to grow its dividend so that investors can remain even more confident with their holdings.
While there could be more challenges ahead, BMO’s long-term outlook should certainly not deter investors. As of this writing, the stock trades at $79.20 and is yielding 5.35%.
With a yield like that attached to a name like BMO’s, investors should be taking note.
Defensive dividend superstar: Fortis
Fortis is definitely a more defensively oriented dividend superstar. While it has a rock-solid track record for paying its dividend, it isn’t exactly known for its high growth prospects.
However, stability could be just what some investors are after. While most stocks are still down significantly year to date, Fortis is practically back to trading at its January 2020 levels.
In general, with a beta of 0.06, you can expect Fortis to be highly resistant to market forces and swings. This safety comes at the price of a lower yield, however, as Fortis is trading at $52.86 and yielding 3.82% as of this writing.
Even still, that’s quite an attractive yield when you consider Fortis’s strong and stable business model.
Dividend superstar strategy
All three of these dividend superstars can help investors rake in great total returns in the long run. They each offer different advantages to investors and can help lock in some solid dividends for the long term.
If you’re looking to pick up some blue-chip TSX stocks, be sure to give these three fair looks.
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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 has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.