High-quality dividend stocks ensure consistent income and supplement your cash inflow, even amid an uncertain macro and geopolitical environment. This article will focus on five top-quality TSX stocks that are reliable bets and could generate steady income for decades. Further, these stocks have been paying dividends for at least 20 years or more.
Toronto-Dominion Bank
Toronto-Dominion Bank (TSX: TD)(NYSE: TD) has a stellar record of paying continuous dividends and is among the most reliable bets on TSX to generate steady income. It has continuously paid a dividend for 164 years. Further, this banking giant’s dividend has a CAGR of 11% since 1995, which is encouraging. Its diversified revenue base and ability to grow earnings amid a challenging operating environment supports consistent dividend payments.
Moreover, its solid balance sheet, high-quality asset base, strong credit performance, and operating leverage will likely drive its earnings and, in turn, its dividend. By investing in this banking giant at current levels, one can earn a yield of 3.5%.
Canadian Utilities
When it comes to reliable dividend income, utilities are a handy investment. Take Canadian Utilities (TSX: CU) stock, for instance. This utility company has grown its dividend for 49 consecutive years, which is the highest among all TSX stocks. Further, Canadian Utilities offers a solid yield of 4.7% at current levels.
Its growing rate base and continued investment in regulated and contracted assets bode well for future earnings growth. Also, a focus on the cost savings cushions its bottom line and supports higher dividend payments.
Fortis
Fortis (TSX: FTS)(NYSE: FTS) is another top bet within the utility space to generate regular income for decades. Like Canadian Utilities, Fortis has consistently increased its dividend (48 years in a row) and is well positioned to grow it further at a decent pace. The company’s low-risk business and predictable cash flows indicate that its payouts are well protected.
Additionally, it projects its rate base to continue to increase, implying higher payments in the future. Fortis expects its dividend to increase by 6% per annum in the medium term and offers a yield of 3.5%.
Enbridge
The fourth stock on this list is Enbridge (TSX: ENB)(NYSE: ENB), which has paid a dividend for about 67 years and increased it for 27 consecutive years. Notably, it grew at a CAGR of 6% since 1995, which is encouraging. Moreover, it offers an attractive yield of 6%.
The strong energy outlook, recovery in its mainline volumes, diversified cash flows, and contractual arrangement will likely drive its payouts. Further, its robust secured capital program, inflation-protected revenues, and expansion of renewables capacity augur well for future dividend payments.
TC Energy
TC Energy (TSX: TRP)(NYSE: TRP) is another reliable stock in the energy space to generate consistent dividend income. It has raised its dividend for 22 years and projects a 3-5% increase in its future dividends, which is encouraging. Its high-quality regulated and contracted assets, high utilization rate, and multi-billion secured capital projects augur well for future growth.
Further, its additional sanctioned projects, revenue escalators, and cost savings will likely drive its earnings and dividend payments. TC Energy offers a yield of 5%, which is reliable in the long term.
