Canadian investors can find a wide range of stocks on the TSX which are beneficial to various investing strategies. Dividend stocks are some of the strongest long-term stocks that you can find on the TSX.
These are stocks with stable dividends and reliable share price growth. While these stocks typically won’t light it up in terms of single-year returns, they are strong performers over time.
However, even within the bigger basket of dividend stocks, investors still have a lot of work to do to choose specific stocks. Some of these stocks offer yields too good to be true, while others are incredibly reliable.
For the best long-term results, it’s likely that investors will want to stick with more reliable dividend stocks. These are blue-chip favourites with great track records and the means to perform well going forward.
Today, we’ll look at two such TSX blue-chip stars that are reliable options for the long haul.
TD Bank
Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of the major Canadian banks and has a long history as one of the top dividend stocks on the TSX.
TD has long been a prime example of a stock with great long-term total return potential. It not only offers attractive share price growth but also an incredibly reliable dividend.
TD is able to offer this sort of performance because of its robust revenue sources. The stock is diversified geographically and across multiple sectors in such a way that its advantageous to investors.
Dividend stocks need to offer investors stability and growth over time to deliver results. TD does exactly that, and investors stand to benefit.
TD has paid a dividend every year since 1857 and has grown its dividend for the vast majority of that time. That has to be music to the ears of investors looking for a strong blue-chip stock for the long haul.
As of this writing, TD is trading at $89.21 and yielding 3.54%. That’s a decent value proposition, especially because TD has plenty of room to grow its dividend going forward in the near term.
Investors searching for top-quality dividend stocks should surely keep an eye on TD.
Fortis
Fortis (TSX:FTS)(NYSE:FTS) is also one of the top TSX dividend stocks for long-term investing. This utility giant has long been a premium example of a stable dividend-paying stock.
FTS is such a reliable stock mostly due to how its revenue rolls in. It provides utility services through mostly regulated contracts and as such it has nearly fixed demand and very predictable income.
This all translates to a very stable stock with one of the safest dividends on the TSX. The stock is also very resilient to market movements, as evidenced by its beta of 0.07.
As such, investors with a bit more of a defensive approach might prefer FTS to other dividend stocks. It offers protection against market forces while also providing investors with a great dividend.
As of this writing, FTS is trading at $54.84 and yielding 3.9%. That’s a pretty solid offering when you consider this is one of the top defensive dividend stocks.
Dividend stocks strategy
Both TD and FTS are potentially great options for long-term dividend investing. They each offer unique benefits that are ideal for different types of investors.
