Looking for income from your investments? That might be kind of hard right now if you’re looking for returns. The TSX today is certainly recovering, with the potential to reach 52-week highs once more before the year is out. But that doesn’t mean every stock out there will catch up. This is why investors continue to seek income through dividend stocks instead.
Today, we’re going to look at some of the best options for dividend stocks — ones that offer long-term returns, while also providing current dividend yields above 6%. So, let’s get right into it.
Extendicare
Extendicare (TSX: EXE) is a great long-term hold for investors who want in on the expanding population of aging Canadians. The entire world is aging and living longer, leaving a massive opportunity for those wanting in on the retirement and long-term-care environment.
One of the best options in Canada continues to be Extendicare stock. Shares dropped by about 19% in the last year before climbing back upwards. Extendicare stock is now back to where it was a year ago, with shares up 14% in the last three months alone.
This comes as the stock’s financial situation improved post-pandemic. Extendicare stock saw its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) rise to $31 million, especially as COVID-19 recovery costs improved. Its home healthcare volume increased as well, and its average long-term-care occupancy was up to 95.1%. The stock now offers a dividend yield still at 6.5% for investors, making it one of the strong dividend stocks to buy on the rebound.
Telus
Another strong stock to consider, but one not on the rebound, is TELUS (TSX: T). This stock provides a strong opportunity for the patient investor, as TELUS stock continues to see pressure from the Rogers and Shaw deal coming through.
Granted, TELUS stock certainly doesn’t have the media exposure that its peers do. But it certainly has a focus on its wireless network, providing fast coverage across the country. Even so, the short term will likely see this stock remain behind its competitors, even providing a lowered outlook for the next year.
Still, it’s not as if TELUS stock is going the way of the dodo bird. In fact, it’s bound to return to normal once the market, economy, and interest rates recover. This will lead to less pressure on the stock and more of an opportunity for growth. With that in mind, it’s a great time for patient investors to pick it up for its 6% dividend yield as of writing.
TC Energy
TC Energy (TSX: TRP) recently hit headlines this week, as the energy stock announced it would be selling 40% of its stake in Columbia gas and gulf pipelines. This would bring in about $5.2 billion in cash to help the company manage debt for its expansion goals.
Analysts were happy with the news, as it was certainly financially responsible, and the company received a good deal on the transaction. Investors weren’t so happy, however, with shares dropping 3% as of writing on the day the announcement was made. That’s on top of the 25% drop over the last year.
Still, this company is a great long-term option if you’re looking for a stock that helps with the energy transition. TC Energy stock continues to find investments into renewable gas production. In fact, while the stock has been dropping, insiders have been picking it up again and again. So, there is likely going to be major growth down the line. Meanwhile, you can buy the stock today with a dividend yield at 7.12% for some solid passive income.
