For long-term dividend investors, there is a wide selection of TSX blue-chip stocks with solid yields. Typically, these are stocks with reliable means of generating revenue and an established presence in the market.
While some stocks have suffered as of late, resilient blue-chip stocks still offer good long-term value. Whether you plan to withdraw dividends for passive income or re-invest them, there are a number of attractive options available.
Above all else, investors are typically looking for reliability when it comes to dividend stocks. After all, an eye-popping yield isn’t much use if it’s due to be cut in the near term anyway.
Today, we’ll look at two TSX stocks ideal for long-term dividend investors.
BMO
Bank of Montreal (TSX: BMO)(NYSE: BMO) is a massive Canadian bank with a strong presence in the U.S. as well. It sports a market cap of $62.73 billion and is trading at $97.52 as of this writing.
BMO has long been an exemplary dividend-paying stock. In fact, its track record for paying a dividend goes all the way back to 1829.
For most of that time, BMO hasn’t simply maintained its dividend but grown it instead. Over time, the compounding potential with a stock like BMO is attractive for long-term dividend investors.
While the past doesn’t always correlate with the future, it’s hard to argue with BMO’s track record. Plus, with how strong its balance sheet is and how robust its business operations are, BMO has the means and resiliency to push through even the toughest market obstacles.
As of this writing, BMO is yielding 4.35%. A yield north of 4% attached to a name like BMO is usually a solid value proposition for dividend investors.
There could still be bumps in the road ahead, but as far as long-term buy and holds go, BMO is a name to keep in mind.
BCE
BCE (TSX: BCE)(NYSE: BCE) is a large holding company for the Bell Canada group of companies. It offers a wide range of products and services to its customers in telecom, media, and entertainment.
Recently, BCE has announced some weak financial results. As such, it took measures in the form of layoffs, potentially to free up cash flow.
However, BCE also increased its dividend, so investors can still have confidence in the blue-chip giant’s yield. This is a large entity with a wide moat of revenue sources and a solid track record for growing its dividend.
As of this writing, this dividend investor pick is trading at $55.14 and yielding 6.35%. A yield like that is certain to grab the attention of dividend-hungry investors.
While it has some bumps to smooth over in the short term, long-term investors will likely still find BCE to be an appealing option.
Dividend investor strategy
When it comes to long-term dividend investing, stability is a major key. Both BMO and BCE have a long history of providing stable returns and dividends and appear set to continue doing so.
If you’re looking to add some blue-chip dividend stocks to your portfolio, be sure to keep tabs on these TSX giants.
