Dividend investing is one of the best ways to generate wealth sustainably for the long term. The TSX boasts several high-quality dividend stocks that you can buy when creating a dividend income portfolio. Investors are typically wary of investing in unusually high-yielding dividend stocks, because there is always a catch.
High dividend yields typically indicate that the payouts are unsustainable for the company and could be slashed in the future. However, a decline in valuation could lead to inflated dividend yields that do not remain high once the stock recovers on the stock market.
Picking high-quality stocks that offer juicy but sustainable dividend yields can help you create a passive-income stream that nets you a decent income.
At any given time, there are several dividend heavyweights trading on the TSX that offer you an opportunity to buy their shares for discounted valuations and inflated dividend yields. Today, I will discuss two such dividend heavyweights you could consider adding to your portfolio for this purpose.
BCE (TSX:BCE)(NYSE:BCE) is a $61.51 billion market capitalization giant in the Canadian telecom industry and a top dividend stock that you could consider adding to your self-directed dividend income portfolio. BCE enjoys the biggest market share in the Canadian telecom sector, generating solid cash flows each quarter due to the essential nature of its services.
The Canadian Dividend Aristocrat boasts a 13-year streak of delivering dividend hikes to its shareholders. It has increased its dividend payouts at a compounded annual growth rate of 6.5% in the last 10 years, and it looks well positioned to deliver more dividend growth. BCE stock trades for $67.53 per share at writing, and it boasts a juicy 5.45% dividend yield.
The company boasts an extensive pipeline network responsible for transporting a significant portion of the crude oil used in North America, playing a vital role in the region’s economy.
It has not been one of the strongest assets to own in terms of capital gains for the last seven years, but Enbridge stock has been a reliable dividend stock.
Enbridge stock is a Canadian Dividend Aristocrat with a 26-year streak of delivering dividend hikes. The company has a wide enough economic moat to ride the waves of economic recessions. Enbridge stock trades for $57.17 per share at writing, and it boasts a juicy 6.02% dividend yield at current levels.
These two dividend stocks are Canadian Dividend Aristocrats that boast extensive dividend-growth streaks. The stocks typically do not offer much in terms of capital appreciation. However, the current market pullback has brought them down to more attractive valuations.
The companies are reliable and offer an opportunity for you to enjoy considerable long-term wealth growth through high-yielding dividends and modest capital growth. If you have been searching for high-yielding dividend stocks for your dividend income portfolio, Enbridge stock and BCE stock could warrant a place in a self-directed portfolio.