RRSP Pension: 3 Top TSX Stocks to Buy Today for Bond-Like Yields of +3.5%

These three top TSX dividend stocks not only provide investors with bond-like yields greater than 3.5%, but excellent long-term growth potential!

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Investors with income needs and those looking for the best-quality dividend stocks on the TSX, listen up.

These three picks are some of the best historical dividend payers on the TSX. Additionally, I think each of these companies has solid long-term dividend and capital appreciation potential. Here are three companies with dividend yields higher than 3.5% that I think every investor should own as cornerstone holdings in an income-oriented portfolio.

Fortis

Currently providing investors with a dividend yield of 3.9%, Fortis (TSX:FTS)(NYSE:FTS) continues to be a top dividend pick of mine. Specifically, this is a stock I think investors should own for its dividend-growth potential. Historically, Fortis has raised its dividend each and every year for nearly five decades! Not five years; five decades. This has been one of the best dividend-growth stories out there, making Fortis one of the best Dividend Aristocrats on the TSX today.

Fortis’s business model is one of the most defensive, making this a great way for investors to combat volatility. The company’s regulated utilities business provides a stable and growing cash flow stream used to fund its increasing dividend and growth projects over time. I think investors looking for income growth over time with bond-like consistency ought to consider this stock first.

Algonquin Power

A company with an extremely strong growth thesis paying a dividend yield of 3.7% is Algonquin Power & Utilities (TSX:AQN)(NYSE:AQN). This company has been on my top picks list for some time, for many of the same reasons as Fortis. Algonquin has a strong base of regulated utilities cash flows that allow for dividend growth over time. However, one of the key differentiating factors with Algonquin is its growth profile.

Indeed, this is a solid growth play as far as utilities are concerned. The growth potential of Algonquin is centered on its renewable power-generating business. Given the investments Algonquin has made at good prices in the past, and its opportunities for further expansion in this space, there’s a lot to like about the long-term potential of this bond-like dividend payer.

Restaurant Brands

Another defensive gem, Restaurant Brands (TSX:QSR)(NYSE:QSR) ought to be a top pick for every income investor right now. This stock pays investors a healthy dividend yield of 3.6%.

The company’s core business model centres on three quick-service restaurant (fast-food) banners. These world-class subsidiaries include Tim Hortons, Burger King, and Popeyes Louisiana Kitchen. While Tim Hortons has been the struggling franchise of late, and an anchor on this stock price, I think there’s a lot of room for optimism to buy this stock as a long-term holding.

I think coming out of the pandemic, this is a company that could post incredible numbers. Additionally, there’s really no reason this growth company should have traded sideways for almost four years. I think growth investors with an income focus are getting a steal with this stock at these levels.

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 Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC and RESTAURANT BRANDS INTERNATIONAL INC.

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