Dividend Investors: 2 TSX Passive Income Stars

Dividend investors looking to add some passive income superstars to their portfolios should check these two blue-chip stocks out.

| More on:
Family relationship with bond and care

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn more

The TSX is home to many blue-chip stocks that are ideal for passive income investing. Dividend investors have plenty of options when it comes to beefing up their passive income options.

However, there are also plenty of TSX stocks with unsustainably high dividends that could be traps for investors. These are typically stocks with high payout ratios and less reliability than bigger blue chips.

Often times, the reward is not worth the risk with these stocks. As such, many investors opt for the more reliable blue-chip stocks, especially within accounts like Tax-Free Savings Accounts (TFSAs) or RRSPs.

Today, we’ll look at two TSX powerhouses that can reliably give dividend investors that passive income they seek.


Telus (TSX:T)(NYSE:TU) is a massive Canadian telecom corporation that provides various communications services through its subsidiary Telus Communications.

This blue-chip star has long been a favourite among dividend investors. It combines growth and reliability to provide strong results for investors.

Telus is able to offer this combination to its investors due to its wide moat of revenue-generating services and its strong foothold in the Canadian telecom market.

Beyond more traditional offerings, it also has entertainment services and a Telus Health division focused on cutting edge digital healthcare solutions. That division has shown potential as a major driver of growth moving forward.

As of this writing, Telus is trading at $26.31 and yielding 4.73%. With a yield like that, it’s easy to see why this stock may be of interest to dividend investors.

Telus has a long track record of not only maintaining its dividend, but also growing it. The company remains committed to providing value to its investors through its juicy and sustainable dividend.

If you’re looking for a telecom stock with some serious dividend punch, be sure to give Telus another look.


Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is one of the major banks in Canada with a strong international presence as well. It has a market cap of $96.22 billion as of this writing.

As a major Canadian bank, BNS has long been a top dividend investor pick for Canadians. It offers reliable growth, dividend stability with ample liquidity cushion that is attractive to dividend investors.

The stock is also relatively resilient to market forces and we saw that even through a tough 2020, the dividend is very safe and secure.

While BNS doesn’t offer the absolute largest yield around, it does offer incredible growth and stability prospects that dividend investors will surely be interested in.

As of this writing, BNS is trading at $79.42 and yielding 4.53%. That yield should be attractive to passive income investors looking for a major bank stock with upside.

Dividend investor strategy

Both Telus and Bank of Nova Scotia can be key components of a passive income strategy. As such, dividend investors should keep a close eye on these stocks.

While the TSX is home to many solid dividend stocks, names like T and BNS tend to stand out above others. If you’re looking to add to a passive income portfolio, be sure to give these names 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 and TELUS CORPORATION.

More on Dividend Stocks

edit Person using calculator next to charts and graphs
Dividend Stocks

The 3 Best Dividend Stocks for Monthly Passive Income

These three dividend stocks are the best options for those seeking high passive income in the next few years in…

Read more »

clock time
Dividend Stocks

Got $10,000 to Invest? 1 Cheap TSX Stock to Buy Right Now

This top TSX dividend stock is finally on sale and has made some savvy buy-and-hold investors quite rich.

Read more »

A close up image of Canadian $20 Dollar bills
Dividend Stocks

Want Monthly Passive Income? These TSX Dividend Stocks Are for You

If you want monthly passive income from TSX stocks, you have to do a little digging. I've given you a…

Read more »

ETF chart stocks
Dividend Stocks

3 International ETFs to Buy for a Diversified Portfolio

Some international markets may prove more resilient against economic downturns, and exposure to them may strengthen your portfolio during crashes…

Read more »

Payday ringed on a calendar
Dividend Stocks

TFSA Pension: 3 Canadian Dividend Stocks to Buy for Monthly Passive Income

These high-yield Canadian stocks look good to buy right now for a TFSA focused on monthly passive income.

Read more »

Dividend Stocks

Need $500 Right Away? These 3 Passive-Income Stocks Have Got You Covered

I could really use an extra $500 to feed my kids, who seem to be permanently hungry. Couldn't you?

Read more »

Young adult woman walking up the stairs with sun sport background
Dividend Stocks

3 Top TSX Stocks to Begin Your Investment Journey

Given their solid business models and stable cash flows, these three TSX stocks are ideal for income-seeking investors.

Read more »

Community homes
Dividend Stocks

Housing Market Crash: How to Make a Profit 

The housing market crash is here, but you can still earn dividends with Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP).

Read more »