There is a wide range of Canadian stocks trading on the TSX ideal for various investing styles. In particular, there are a lot of very strong dividend stocks in Canada.
These stocks suit a long-term investor who’s focused on value and compounded returns. Over time, these blue-chip stars have the potential to deliver great returns.
However, investors must be careful when choosing dividend stocks. Sometimes, there are yield traps on offer, and the dividends are too good to be true.
So, investors should turn their attention to reliable blue-chip Canadian stocks with reliable dividends. These stocks are the ones that could go the distance for long-term investing.
Today, we’ll look at three such TSX stocks that investors will want to keep an eye on.
TD is one of the best Canadian stocks for finding long-term value. The stock has paid a dividend every year since 1857 and has the means to continue to do so easily.
Plus, while its dividend has been forced to be stagnant of late, it certainly has room to grow going forward. This could be a benefit for long-term investors looking to pick up shares of a dividend star now.
TD has a strong presence in both the U.S. and Canada, and this helps it drive growth through a unique blend of revenue sources. Its diverse portfolio of business streams help it offer stability and growth to investors.
As of this writing, TD is trading at $87.61 and yielding 3.61%. Investors looking to choose a bank stock in their Canadian stock portfolio should give TD a good look.
However, this giant Canadian stock has quite a wide range of products, including TV, entertainment, and even digital healthcare through Telus Health.
Now more than ever, it seems digital healthcare could be a big driver for growth going forward. Couple that with strong demand for 5G in Canada, and Telus has a clear path for sustainable growth ahead.
As of this writing, this Canadian stock is trading at $27.41 and yielding 4.61%. That’s a juicy yield that investors can trust going forward.
Telus is known to have a penchant for providing outstanding dividend growth to its investors, and Canadian investors can count on that for long-term returns.
Defensive Canadian stock: Fortis
Fortis is so stable because its revenue streams are completely reliable and predictable. That’s because its utility services are provided mostly through regulated contracts.
As such, investors don’t really have surprises come earnings time, and the dividend is nearly set in stone. As of this writing, this Canadian stock is trading at $56.12 and yielding 3.6%.
Investors looking to add a stock that can offer defensive insulation to their portfolio should give Fortis strong consideration.
Best Canadian stocks for dividends
These three TSX giants are ideal for long-term dividend investing. They each offer something unique that can suit investors with different preferences.
In the end, these blue-chip stars each offer a great value proposition for investors with their eyes on the long run.
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 and TELUS CORPORATION.