Dividend Stocks: 2 TSX Banking Superstars

Looking to pick up shares of some top Canadian dividend stocks? These two banking giants could be great options to consider for the long haul.

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Canadian investors are able to deploy various investing strategies, because the TSX offers many types of quality stocks. Dividend stocks are both abundant and attractive options when it comes to TSX investing.

Banking in particular is a very strong sector of the Canadian economy with many blue-chip names ideal for long-term investing. These are stocks that offer investors fantastic total return potential over a long investment horizon.

These names typically won’t blow the roof off in terms of growth in a given year, but over time, these stocks help investors come out ahead.

Today, we’ll look at two such TSX dividend stocks that investors can rely on for long-term investing.


Royal Bank of Canada (TSX:RY)(NYSE:RY) is a massive Canadian bank stock with the largest market cap among peers in Canada. The bank offers a wide range of products and services to its customers and, as such, has diverse revenue streams.

RY is a great example of a high-quality blue-chip dividend stock that’s ideal for investors focused on the long haul. It offers not only decent share price appreciation but also a rock-solid dividend with a phenomenal history of growth.

In fact, RY has paid a dividend every year since 1870 and grown the dividend for most of that time too. Its commitment to paying investors a reliable dividend helps make it a staple for blue-chip investors.

This dividend stock has, of course, been forced to keep its dividend in check as of late. However, with things starting to roll again, this is a blue-chip stock that could easily start pushing its dividend up as we move forward.

As of this writing, it’s trading at $125.07 and yielding 3.45%. For long-term investors, that’s a pretty attractive option.

RY has great diversification in the way it pulls in revenue and is a very steady dividend stock.


Bank of Montreal (TSX:BMO)(NYSE:BMO) is another large dividend stock in the Canadian banking sector. Like with RY, BMO offers investors a rock-solid dividend plus reasonable share price growth.

BMO has long been a strong force in the dividend investing space. That’s because it’s paid a dividend every year since 1829, and actively increased its dividend for much of that time as well.

BMO differentiates itself from its peers in a few ways. It takes on a different lending profile than most of its banking relatives, plus it has a very strong focus on U.S. growth and exposure.

It’s this sort of diversification that helps BMO deliver value time and time again to dividend stock investors. Over time, the total return potential with a stock like BMO is great.

As of this writing, it’s trading at $125.98 and yielding 3.37%. With your sights set on the long haul, BMO is a great choice to deliver consistent results.

Dividend stock strategy

Both RY and BMO are very solid dividend stocks perfect for long-term investing strategies. They each offer unique benefits to investors, but they both have very promising prospects for the long haul.

If you’re looking to harness the power of compounding with some dividend stocks today, be sure to check out these banking giants.

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 has no position in any of the stocks mentioned.

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