Dividend Investing: 2 High-Yielding TSX Kings

When it comes to long-term dividend investing, there are blue-chip TSX stocks with stable yields to target for high returns.

| More on:
Gold king in chess game face with the another silver team on black background (Concept for company strategy, business victory or decision)

Image source: Getty Images

For income-focused investors, dividend investing is a great way to generate passive income. Investors love the idea of loading up on stocks with high yields and just sitting back as cash comes in.

However, it’s important for investors to select the right stocks for this method. Especially during tough economic times, it’s vital that these are stable and reliable stocks.

Typically, blue-chip TSX stocks with stable revenue make for good targets. These are stocks likely to maintain their dividends and even grow them over time.

While other stocks with higher yields might be out there, those yields might not be sustainable. If a company doesn’t have resilient sources of revenue, its dividend could be on the chopping block. That’s something passive-income investors never want to see.

Today, we’ll look at two dividend investing kings with stable yields built for the long run.

Fortis

Fortis (TSX:FTS)(NYSE:FTS) is a big name in the Canadian dividend investing realm. It’s a large and well-diversified electric utility holding company with stable sources of income.

FTS has a solid track record for maintaining and growing its dividend to investors and remains focused on delivering value to its investors. The key to its dividend stability has to do with the way it generates business.

That is, this dividend investing star operates its utility services primarily through regulated contracts. That means revenue sources are very secure, predictable, and dependable.

This translates directly to a solid and stable yield for investors. As of this writing, FTS is trading at $49.30 and yielding 4.1%.

For those focused on passive income, FTS can provide a steady influx of cash through its dividend. While it’s not the most eye-catching yield around, it’s backed by a rock-solid foundation.

TD Bank

Toronto-Dominion Bank  (TSX:TD)(NYSE:TD) is one of Canada’s largest banks, with a wide range of products and services on offer. It has a strong presence in the U.S. and Canada that contribute to its growth and stability.

As a major Canadian bank, it’s naturally a prime candidate for dividend investing. These are typically stocks with diverse ways of generating cash and proven stability in the market.

TD has been paying a dividend for a long time and has also been committed to growing its dividend over time. Even with throughout a very tough 2020, TD weathered the storm and was able to increase and then maintain its dividend.

While there could still be challenges ahead, TD clearly has the wherewithal to withstand turbulent market conditions. As of this writing, TD is trading at $77.53 and yielding 4.08%.

With a yield north of 4%, passive-income investors should be interested in TD going forward. This major player in Canadian banking can offer huge long-term return potential to investors.

Dividend investing strategy

When it comes to long-term dividend investing, finding stable dividends is one of the most important factors. While every investor loves a sizeable yield, it has to be sustainable over time to truly deliver long-term results.

Both FTS and TD offer investors solid yields above 4% with proven stability. Long-term dividend investors should be sure to keep an eye on these TSX superstars.

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 FORTIS INC.

More on Dividend Stocks

thinking
Dividend Stocks

Should You Buy BCE Stock for its 8.6% Dividend Yield?

Down over 20% from all-time highs, BCE stock offers you a tasty dividend yield in 2024. But is the TSX…

Read more »

grow dividends
Dividend Stocks

How Long Would It Take to Turn $20,000 Into $100,000 With TSX Dividend Stocks?

Here's how high-quality TSX dividend stocks and the power of compound interest can help grow your investments by 400% or…

Read more »

Paper airplanes flying on blue sky with form of growing graph
Dividend Stocks

2 Soaring Stocks I’d Buy Now With No Hesitation

These two stocks may be the most expensive on the market, but they're high for a reason! And I'm still…

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

Invest $374.50 Each Month to Create Passive Income of $288 in 2024

Investing a specific amount each month to create passive income this year is possible with monthly dividend payers.

Read more »

Happy retirement
Dividend Stocks

2 Stocks to Help Turn $100,000 Into $1 Million

If you want to reach $1 million, $100,000 can certainly get you there. Even if you invest in some low…

Read more »

warning or alert
Dividend Stocks

Income Alert: These Stocks Just Raised Their Dividends

There's no shortage of companies that raised their dividends recently. Here's a trio of options to consider buying now.

Read more »

Business success with growing, rising charts and businessman in background
Dividend Stocks

Don’t Look Now, But These 3 TSX Stocks Look Poised for a Nice Rally 

Three TSX stocks are in a downtrend amid headwinds. 2024 may be rocky for them, but they are poised for…

Read more »

protect, safe, trust
Dividend Stocks

3 Safe Dividend Stocks to Beat Inflation

These three dividend stocks are excellent buys to beat inflation, given their solid underlying businesses and high yields.

Read more »