The TSX is home to many top-quality blue-chip stocks with rock-solid dividends. These stocks are ideal for income investing with a long-term outlook.
That’s because they often combine reliable share price growth with a steady and sturdy dividend. Over time, investors are able to enjoy great total returns with these sorts of stocks.
Now, for those interested in income investing, it’s important to pick the right options. Some stocks have really high dividends, but those dividends may not be sustainable.
So, in the end, those stocks are likely to offer lower returns over time compared to their steadier blue-chip counterparts.
Today, we’ll look at two TSX blue-chip stocks that are ideal for long-term income investing.
For investors, Telus represents a solid income investing option, because of its wide moat of revenue streams. Plus, it has its hands in some high-potential growth sectors, such as digital healthcare through Telus Health.
As of this writing, Telus is trading at $26.77 and yielding 4.72%. With nearly a 5% yield on offer, it’s easy to see why income investing proponents would be intrigued by Telus.
Ultimately, investors can enjoy great long-term returns with this TSX telecom blue-chip giant. Not only will the stock offer solid share price growth, but it’s also staunchly committed to growing its dividend for investors.
With both dividend growth and share price growth on offer with Telus, passive-income investors should keep an eye on this blue-chip star.
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This major Canadian bank stock offers investors both solid share price growth and incredible dividend stability. RY has a phenomenal track record for paying its dividend historically, and it has shown absolutely no signs of changing that.
This stock is able to offer investors such a great dividend because of its strong and diverse range of revenue sources. Investors are able to enjoy the qualities of a major bank stock with an attractive dividend all at the same time.
As of this writing, RY is trading at $123.04 and yielding 3.51%. While income investing fans will note that that’s not the biggest yield around, it’s important to remember it’s attached to the biggest name in Canadian banking.
After all, a big dividend isn’t worth much if it’s nearly certain to be cut anyway. Investors won’t have to fear this case with RY, as the stock has held its dividend strong for many years and continues to grow its payout regularly.
This bank stock is ideal for long-term income investing as a result, and Canadian investors should take note.
Income investing plan
Both T and RY offer investors a clear path for long-term income investing success. These two blue-chip stocks are ideal for Canadian investors with a focus on income and an eye on the long run.
If you’re looking to add some top TSX dividend stocks to your portfolio, put these names on the shopping list.
That's two names, but what about a full top 10 list?
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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 TELUS CORPORATION.