Dividend investing is one of the best approaches to stock market investing with a long-term view. Allocating a significant portion of your investment capital to income-generating assets that provide you with reliable shareholder returns through dividend payouts can introduce a degree of stability to your portfolio.
High-quality, blue-chip dividend stocks are attractive long-term investments. Reinvesting the shareholder dividends can help you unlock the power of compounding to speed up your wealth growth for more substantial total returns.
At writing, the S&P/TSX Composite Index is down by 4.49% since its January 17 levels, as fears of a new Omicron variant have started rattling global financial markets. If you are worried about your investment returns amid these conditions, dividend investing can provide you with a relative degree of stability.
Blue-chip dividend stocks are not immune to market downturns. However, companies with strong fundamentals can continue disbursing shareholder dividends during these conditions to keep growing your wealth while you wait for markets to recover.
Today, I will discuss two top dividend stocks that could be worth making a part of your investment portfolio.
Telus
Telus (TSX:T)(NYSE:TU) is a Vancouver-based $29.63 billion market capitalization giant in the Canadian telecom industry that offers a wide range of products and services. Telus stock is a mainstay for many stock market investors as a blue-chip stock pick in their dividend investing portfolios due to its stellar track record for reliably paying shareholder dividends and offering dividend growth.
Telus generates most of its revenues through its telecom business, but it has also entered several other industries to boost its revenues, including the healthcare sector through Telus Health. The company has become a leading player in the cutting-edge health industry innovation space. Telus boasts a significant potential to grow and offer more value to its investors in the coming years.
Telus stock trades for $29.25 per share at writing, and it boasts a juicy 4.48% dividend yield.
Bank of Montreal
Bank of Montreal (TSX:BMO)(NYSE:BMO) is a $$92.12 billion market capitalization bank that is now headquartered in Toronto. BMO is one of the Big Six Canadian banks and another top blue-chip dividend stock favoured by many stock market investors. The Big Six Canadian bank stocks always make for strong picks for dividend investors.
BMO stock is a solid option for long-term investors due to the stability of its business, its geographically diversified revenue streams, and track record for paying investors their shareholder dividends. BMO stock trades for $142.10 per share at writing, and it boasts a 3.74% dividend yield that you can lock into your portfolio today.
Foolish takeaway
If you are an investor looking for solid options that can provide you with significant long-term wealth growth through shareholder dividends, a portfolio of income-generating assets could help you achieve that goal. Picking the right dividend stocks can keep growing your wealth, even during market downturns and volatile environments. Telus stock and BMO stock could be excellent long-term dividend stocks for this purpose.
