For long-term investing, blue-chip TSX stocks offer solid total-return potential. In particular, ones offering stable dividend growth are desirable.
These blue-chip stars typically offer decent share price growth with outstanding dividend growth. So, over time, the power of compounding allows these stocks to deliver great results for investors.
When investing with a long horizon, the buy-in point is usually not overly important. On the surface, it’s obviously great to avoid buying at an all-time high, but in the long run, this isn’t of much concern.
As such, there are many blue-chip TSX stocks that long-term investors can focus on. Today, we’ll look at two dividend giants suited for long-term investing.
As a major player in the Canadian telecom space, Telus frequently posts solid growth with a healthy dividend to boot. It’s also committed to growing its dividend over time and remains on track to do so for the next five years according to guidance.
As of this writing, Telus is trading at $25.45 and yielding 4.9%. A near-5% yield attached to a name like Telus should be enticing for long-term investors.
Over time, that type of yield can provide great results when considering compounding. Throw shares of Telus into a TFSA, and you can take advantage of massive tax savings too.
Telus has also shown a willingness to capitalize on new market opportunities. Specifically, its Telus Health branch is on the cutting edge of digital healthcare solutions.
Going forward, this could be an area of particular interest and Telus already has strong footing. In general, a wide moat of revenue streams is a positive for blue-chip TSX stocks.
If you’re looking at the Canadian telecom stocks, Telus’s unique positioning should be intriguing.
Scotiabank has a bit more of an international focus than most of its peers. In particular, it has made lots of headway in Latin America.
While those commodity-based economies might not be doing too hot now, the long-term growth prospects are there. This could be a key driver for growth going forward.
As of this writing, BNS is trading at $69.04 and yielding 5.21%. With a payout ratio of around 68%, that juicy yield is more than sustainable for this blue-chip giant.
BNS also has a phenomenal track record when it comes to maintaining and growing its dividend. So, even with the unique challenges in today’s market, this blue-chip TSX stock has proven it can deliver value.
This is definitely a TSX stock that investors can bank on.
Blue-chip TSX stock strategy
Both these TSX giants can offer investors great total-return potential over the long haul. They both offer stable yet juicy dividends with solid growth prospects moving forward.
If you’re looking to pick up some blue-chip TSX stocks, these are two that are worth checking out.
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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 BANK OF NOVA SCOTIA and TELUS CORPORATION.