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.

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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 (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 (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.

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