For Canadians focused on dividend investing, there are a lot of attractive TSX options available. That is, many Canadian stocks pay fairly juicy dividends to their investors.
However, not all these stocks have the stability to back up their big dividends. Therein lies the key for long-term investors looking for the ultimate value over time.
Investors need to consider not only the size of the dividend on offer but also how reliable the yield can be. Certain TSX stocks with juicy yields may have no means of upholding that dividend going forward.
Today, we’ll look at two rock-solid dividend investing stocks with not only attractive dividends, but also the means to uphold them.
BMO has long been a favourite for those interested in dividend investing. That’s because it’s established itself as a reliable dividend-growth play through the years.
Plus, even a tough 2020 couldn’t do much to hurt that reputation, as BMO continued to plod forward. This is a stock you can expect to perform very well as the economy starts to roll as well.
As of this writing, BMO is trading at $128.44 and yielding 3.3%. While that yield is a little on the low end, it wouldn’t be surprising at all to see BMO toss in a few dividend hikes in the near future once it’s able.
Over time, there’s no questioning the long-term dividend investing return potential with a stock like BMO. It has the potential to deliver outstanding results for its investors.
While the stock isn’t as cheap as it was during the market dips of 2020, it’s still a great long-term value for those looking at dividend investing.
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It’s easy to see why as well, RY is almost always among the top banks in Canada. As such, it offers a great mix of both dividend and share price growth to deliver value to investors.
Even a rough 2020 couldn’t do much to hinder RY, and many long-term investors quickly scooped up shares of the banking behemoth when it dipped with the market.
As of this writing, RY is trading at $126.08 and yielding 3.43%. Like with BMO, I’d expect to see dividend hikes going forward when the time is right.
While 3.43% isn’t too far off RY’s typical average yield, the bank can still go higher with its dividend. Investors focused on the long term should be taking note.
If you are looking for another bank stock ideal for dividend investing, RY is a very solid option.
Dividend investing strategy
Dividend investing and stocks like RY and BMO go hand in hand. These banking giants are ideal candidates for this investing style due to their stability and reliability.
Over time, these two stocks can deliver great value to investors through reliable growing dividends and respectable share price growth.
If you’re looking to add to your dividend investing strategy, be sure to check these stocks out.
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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.