Dividend investing is one of many sound strategies available to Canadian investors. It’s especially attractive for investors who reinvest the dividends and allow for compounding to do its thing over time.
While this ttype of investing style typically doesn’t offer eye-popping returns in a single year, it allows investors to make huge total gains over time. For investors in it for the long haul, blue-chip dividend investing is a very solid approach.
However, not all dividend stocks are created equal. Some aren’t suited for this type of long-term investing because they lack the reliability or stability that is required.
So, it’s important for investors to be mindful of the dividend stocks they look into. Today, we’ll look at two TSX gems that are ideal for dividend investing for the long haul.
CIBC
Canadian Imperial Bank of Commerce (TSX: CM)(NYSE: CM) is a Canadian blue-chip stalwart in the banking space. It has a long track record for delivering a solid and growing dividend.
CM is a great option for investors looking for great total returns over time. The share price might not experience wild growth, but that dividend can do wonders over time if reinvested.
As of this writing, CM is trading at $141.47 and yielding 4.13%. That’s an attractive proposition for long-term investors, especially because that dividend has room to move up as the economy really gets rolling.
CM has a diverse range of revenue streams and sources that help it offer investors great stability and peace of mind for the long haul. This is a major player in one of the top TSX sectors, which inspires a lot of confidence.
The financials look good for CM and there isn’t any concern with its dividend stability. This is a rock-solid blue-chip stock ideal for dividend investing for the long run,
Telus
TELUS (TSX: T)(NYSE: TU) is a major player in the telecom space through its subsidiary, Telus Communications. It offers a wide range of telecom products and services, as well as internet and entertainment solutions to customers.
Beyond that, Telus also has the Telus Health division, a leader in digital healthcare solutions. Exposure to that type of business is probably a good thing at this point and going forward.
Telus has a long track record for providing substantial dividend growth while also being a relatively stable dividend investing stock. As of this writing, it’s trading at $27.67 and yielding 4.57%.
That’s quite the yield on offer for long-term dividend investors to benefit from. Over time, the total return potential with a stock like Telus is huge.
As a huge part of the Canadian telecom space, T offers investors a consistent dividend with great prospects for share price appreciation going forward. This diverse blue-chip stock is great for dividend investing.
Dividend investing strategy
Both CM and T are very attractive options for a long-term dividend investing plan. They each offer Canadian investors rock-solid dividends with plenty of room to grow for the future.
If you’re looking to scoop up some TSX blue-chip superstars, these two names should be high on your shopping list.
