2 TSX Telecom Stocks With High Dividend Yields Above 4% to Buy Today

The TSX telecom sector is a great place to invest in 2022 if you’re chasing high quarterly income.

| More on:
Increasing yield

Image source: Getty Images

When the stock market got choppy recently, and all those high-growth overvalued tech stocks took a tumble, investors fled to value stocks. These are large-cap, blue chip companies with good balance sheets, strong cash flow, profitability, and ever-increasing dividends with long, consistent payout histories.

Fortunately for Canadian investors, our stock market is full of these heavy hitters. Today, I’ll profile two top stocks from the telecom industry — a historically low-volatility, safe sector of the stock market that delivers slow but steady returns over the long run with the potential for high growth for some companies.

Telus

Telus (TSX:T)(NYSE:TU) provides a range of telecommunications and information technology products and services in Canada, operating through both Wireless and Wireline segments. Its products and services are diverse, including internet, cable, security, home automation, healthcare, agriculture, and cloud-based products.

T currently has a forward annual dividend yield of 4.33%, with a five-year average dividend yield of 4.15%, which is quite respectable. Aside from that, the company’s revenues, earnings, and dividend payouts have increased consistently over the last decade, displaying good growth and profitability.

T trades at around $30, which is close to its 52-week high of $30.75. The stock has a five-year monthly beta of 0.54, making it half as volatile than the overall market. T is also trading slightly above both its 50-day and 200-day moving averages of $29.60 and $28.28, respectively, which could indicate an overall bullish trend.

BCE

BCE (TSX:BCE)(NYSE:BCE) provides wireless, wireline, internet, and television (TV) services to residential, business, and wholesale customers in Canada. It operates through three segments: Bell Wireless, Bell Wireline, and Bell Media. Their products and services include internet, phone, satellite TV, streaming services, digital media, and broadcasting.

BCE currently has a forward annual dividend yield of 5.24%, with a five-year average dividend yield of 5.32%, which is very impressive. BCE has a long-standing history of consecutive dividend increases and payout streaks, making it a top Dividend Aristocrat to anchor your core portfolio holdings with.

BCE currently trades at around $67 — close to its 52-week high of $67.70. The stock has a five-year monthly beta of 0.34, making it a third as volatile than the overall market. BCE is also trading slightly above both its 50-day and 200-day moving averages of $65.66 and $63.19, respectively, which could indicate an overall bullish trend.

The Foolish takeaway

Dividend-growth investors chasing high yield should consider the Canadian telecom sector — Telus and BCE in particular. These two stocks offer excellent fundamentals, substantial dividend yields, long histories of payments and consecutive increases, and good competitive advantages. Buying and holding these three stocks as the core of an income-oriented portfolio could be a winning strategy.

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 Tony Dong has no position in any of the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.

More on Dividend Stocks

money cash dividends
Dividend Stocks

Want Passive Income: Hold This Canadian Dividend Growth Stock Forever

Passive income seeking investors can now buy shares of dividend-paying blue-chip companies at a discount, such as Brookfield Infrastructure.

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

Retirees: 2 On-Sale TSX Dividend Stocks to Buy Now for Passive Income

These top TSX dividend stocks now offer 6% yields.

Read more »

Payday ringed on a calendar
Dividend Stocks

New Investors: The 3 Best TSX Dividend Stocks for Monthly Cash

New investors looking for monthly dividend cash are in luck! Here are three attractive Canadian dividend stocks for growth and…

Read more »

A worker gives a business presentation.
Dividend Stocks

3 Dividend Stocks You Can Safely Hold for Decades

Here are three of the safest Canadian dividend stocks you can buy right now to hold for decades.

Read more »

Red siren flashing
Dividend Stocks

Buy Alert: This Energy Stock Is Unstoppable After Strong Results

Tourmaline Oil (TSX:TOU) beat earnings and looks unstoppable.

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

2 Safe Dividend Stocks to Beat Inflation

Canadian investors, young and old alike, can cope with or even beat inflation by owning two safe dividend stocks.

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

2 Canadian Dividend Stocks (With +6% Yields) You’ll Regret Not Buying at These Prices

TSX dividend stocks such as TC Energy and TransAlta Renewable are well poised to deliver consistent returns to long-term investors.

Read more »

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

2 TSX Stocks With Market-Beating Potential

Even in the current economic environment, long-term investors have a great chance of beating the market. Stocks like CN Rail…

Read more »