TSX Dividend Stars: 2 to Load Up On!

Looking to pick up shares of some TSX dividend stars? These two household names could present good value for the long haul.

| More on:
Various Canadian dollars in gray pants pocket

Image source: Getty Images

Many TSX dividend stars can be the backbone for long-term investment portfolios. This is because they offer great total return potential over time, especially when accounting for compounding.

To deliver said total returns, the stocks must offer growth in both the base share price and dividend over time. That way, investors can fully capture growth over time and let compounding do the heavy lifting.

So, when picking TSX dividend stars to invest in, stability and future prospects are key things to measure. These traits enable long-term investors to find value in blue-chip stocks.

Today, we’ll look at two TSX dividend stars that are poised to deliver solid long-term results.

Scotiabank

Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is a major Canadian bank, with a market cap of $82.82 billion. Beyond its Canadian presence, it also has strong footing in various Latin American markets.

BNS has a phenomenal track record when it comes to paying and growing its dividend. That helps make this TSX dividend star a solid long-term investing choice.

As a major Canadian bank, BNS is staunchly committed to delivering value to its investors. This typically comes in the form of a growing dividend and modest but steady share price growth.

Now, it’s true that its positioning in commodity-based Latin American markets may be treacherous given today’s circumstances. However, in the long run, this is an area that can be a major driver for growth for BNS.

Plus, while past performance isn’t a perfect indicator of future performance, BNS’ outstanding track record for growth and stability can’t be ignored.

This TSX dividend star is trading at $68.46 and yielding 5.26% as of this writing. With a dividend like that, the power of compounding can unlock huge gains for investors over time.

BCE

BCE (TSX:BCE)(NYSE:BCE) is a massive Canadian holding company for the Bell Canada group of companies, which includes Bell Media. Through Bell Media, the company provides various media and telecom based products and services.

BCE has long been a top TSX dividend star. It typically pays a hefty yield to its investors, while providing decent share price growth as well.

It is usually a fairly stable stock, due to most of its products and services being non-cyclical or near-essential in today’s day and age. Still, BCE finds new ways to drive growth and uses its top tier infrastructure to deliver a premium product.

As of this writing, BCE is trading at $55.73 and yielding 5.99%. When a stock like BCE is yielding what’s basically 6%, long-term investors should be intrigued.

Over time, that dividend can help bring massive returns for long-term investors. With a solid long-term outlook, BCE is an interesting TSX dividend star to watch today.

TSX dividend stars

Both BNS and BCE are blue-chip giants worth looking into further. They have great dividends on offer today and solid prospects for the future.

Despite the tough circumstances of today’s market, these giants still have very positive outlooks for the future.

If you’re looking to add some TSX dividend stars to your portfolio for the long run, both these household names are worth strong consideration.

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.

More on Dividend Stocks

grow dividends
Dividend Stocks

1 Cheap Stock to Turn a $20,000 TFSA Into $267,000

If you're looking to boost your TFSA, you need a cheap stock that you can hold for decades. And I…

Read more »

edit Person using calculator next to charts and graphs
Dividend Stocks

2 of the Best Monthly Passive-Income Stocks to Buy in Canada Right Now

Here are two of the best Canadian monthly passive income stocks you can consider buying right now to hold for…

Read more »

stock analysis
Dividend Stocks

3 TSX Stocks I Will “Never” Sell

Few companies offer a powerful enough combination of dividends and growth potential to deserve a permanent place in your portfolio.

Read more »

value for money
Dividend Stocks

2 Cheap TSX Stocks for TFSA and RRSP Investors to Buy Now

These stocks look attractive today to buy for a TFSA or RRSP portfolio.

Read more »

Increasing yield
Dividend Stocks

3 TSX Stocks With High Dividend Yields

These three high-yielding dividend stocks would be excellent additions to your portfolio in this volatile environment.

Read more »

Payday ringed on a calendar
Dividend Stocks

New Investors: 3 Top TSX Dividend Stocks That Pay Cash Monthly

Canadian investors looking for monthly dividends have plenty of options on the TSX. Here's three of my favourite stocks for…

Read more »

woman data analyze
Dividend Stocks

These U.S. Stocks Are No-Brainer Additions to Your Portfolio

Buy these two no-brainer U.S. stocks if you want to gain exposure to international stocks in your self-directed portfolio.

Read more »

Value for money
Dividend Stocks

1 Value Stock Every Canadian Investor Should Own

This value stock not only has a solid present, but a stable future at incredibly cheap and even oversold prices!

Read more »