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.
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.
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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.
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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.