The TSX is home to many top stocks for dividend investors to choose from. Blue-chip stocks with diverse revenue streams are often great options when it comes to dividend investing.
Typically, dividend investors are looking for stocks with stable growth and dividend potential. It can be risky to go with a high-growth stock or one with an abnormally high dividend.
After all, a juicy dividend that’s doomed to be cut won’t do you any good for the long haul, especially compared to a more reliable offering from a solid blue-chip stock.
While those types of stocks are appealing for some investing styles, long-term dividend investors will likely want to stick with large blue-chip stocks.
Today, we’ll look at two TSX superstars that are ideal for long-term investing with a focus on dividends.
Telus
Telus (TSX: T)(NYSE: TU) is a massive telecom stock on the TSX with great appeal to dividend investors. It offers both attractive share price growth potential as well as a juicy dividend.
With such sure footing in a major sector of the Canadian market, this is a blue-chip stock that investors can rely on. Telus also has interesting efforts outside of the direct telecom market, such as the Telus Health division.
Telus Health is a major player in the digital healthcare solution space and could be a driver for growth going forward. It’s things like that which help make Telus a well-rounded option for long-term investors.
As of this writing, Telus is trading at $28.08 and yielding 4.5%. That’s quite the eye-catching yield when you consider it’s linked with a name like Telus.
The rollout of 5G networks Canada-wide should also help drive demand for more telecom services and Telus could see a boost from that as well.
Long-term dividend investors looking for a blue-chip stock that combines growth with reliability will want to keep tabs on Telus.
BMO
Bank of Montreal (TSX: BMO)(NYSE: BMO) is a large Canadian bank stock, which has long been a favourite amongst dividend investors.
BMO has a strong presence in both the U.S. and Canada and a wide range of revenue sources that help it deliver results to investors.
There’s definitely no question when it comes to BMO’s dividend stability, as it’s paid a dividend every year since 1829. Plus, its dividend could be set to rise going forward as the economy opens up.
As of this writing, this dividend investor’s star is trading at $131.49 and yielding 3.22%. While that’s definitely not a gigantic yield, investors should bear in mind that BMO’s dividend should have plenty of upward momentum in the future.
BMO offers investors a great way to hop onto Canada’s banking sector with a reliable option.
Dividend investor strategy
Both T and BMO can appeal to dividend investors that are in it for the long haul. These blue-chip giants both offer unique benefits, but what they have in common are stability and phenomenal track records.
If you’re looking to add to your dividend investing stash, these two heavyweights are ideal options.
