The TSX is home to many high-quality, blue-chip stocks that are ideal for long-term investing. The Canadian banking giants make for solid long-term investments in particular.
This is because these stocks typically offer both respectable share price growth as well as a growing but stable dividend. Of course, these stocks have been forced to hold dividends in place recently, but these dividends are due to rise as the economy opens up.
Now, these types of stocks will usually never blow the roof off in terms of share price appreciation in a given year. However, the Canadian banking giants make up for this with proven, reliable results over time.
For long-term investors, these blue-chip stalwarts are ideal options to pursue. Today, we’ll look at three TSX bank stocks to keep an eye on.
TD is a name that many investors hear about right when they start investing. It’s a household name in banking and a perfect example of a reliable blue-chip stock.
This banking giant is trading at $84.66 and yielding 3.73% as of this writing. Over time, that dividend can help provide strong compounded returns for long-term investors.
TD’s strength comes in its wide range of revenue sources and its geographical diversification. Going forward, TD is in a good spot to provide value for long-term investors with both share price growth and dividend reliability.
TD is one of the top banking giants and worth a look for any long-term investor.
Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) is another top Canadian banking giant trading on the TSX. It differentiates itself from other banking stocks with its international diversification and exposure to commodity-focused economies.
These are economies that would have struggled for the last year or two but could be due for a big boon as the global economy starts to flow more freely. This could put BNS in a position to offer great growth numbers in the medium term for investors.
As of this writing, BNS is trading at $79.14 and yielding 4.55%. That’s certainly a juicy yield when you consider it’s attached to one of Canada’s top banking giants, and the dividend is likely to grow moving forward.
Investors looking for some international exposure with a top TSX blue-chip stock will want to keep tabs on BNS.
Banking giant: BMO
This is a well-rounded blue-chip stock offering attractive share price growth and a reliable dividend. BMO boasts a wide moat of revenue sources and has potential for high growth with its strong positioning in the U.S. coming along.
As of this writing, this banking giant is trading at $126.01 and yielding 3.36%. While that’s not the most eye-watering yield around, it’s still a respectable entry point for long-term investors.
If you’re looking for a strong Canadian bank stock with unique lending allocations, BMO is worth a look.
Investing with banking giants
These three TSX stars are all worth strong consideration for long-term investors. They each offer something unique and can provide high returns over time.
Be sure to give these banking giants another look if you’re looking to beef up your portfolio’s blue-chip allocation.
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.