My 2 Favourite TSX Dividend Stocks for December 2023

These dividend stocks continue to see buy recommendations from analysts, and are the top choices in their sectors. So now is the time to buy!

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This December, the market looks like it could be recovering. There are now some strong opportunities out there for growth. Yet part of my strategy remains focused on passive income through dividend stocks.

However, I’m not necessarily just looking for high yields. I want high returns as well, to support that dividend I’ll come to enjoy. So today, I’m going to focus on two dividend stocks I think are great options for December 2023. So let’s get into it.

Rogers

The Canadian telecommunications industry continues to show signs of positivity as we head towards 2024. There has been a lot of underperformance in 2023 thanks to higher inflation and interest rates. Further, the Canadian Radio and Television Committee (CRTC) has put the sector under a microscope to ensure fair competition.

While competition certainly has yet to stabilize, there should be continued improvements into 2024. This would include success from Black Friday sales, as well as a strong second half overall for most telecommunications companies. However, Rogers Companies (TSX:RCI.B) continues to be a fan favourite.

The stock is the top pick for some analysts out there, as the company’s synergies from its Shaw acquisition are fully reflected through next year and into 2025. That makes Rogers stock very interesting at today’s levels as it heads towards those synergy targets.

Meanwhile, Rogers stock now holds the highest free cash flow yield of the large telecommunications companies. Further, it offers a strong dividend yield at 3.29% as of writing. That’s slightly higher than its five-year average of 3.25%. So with shares slightly down by 1% in the last year, but up a substantial 22% in the last month, now is a great time to buy in December 2023.

BMO

Another strong dividend stock to consider right now is Bank of Montreal (TSX:BMO) as the dividend stock continues to show signs of improvement. That’s especially as the economy in general improves on a global scale. Analysts believe that we will not see a global recession. Economic growth is likely to be slow in many markets in the next few quarters; however, overall it’s look positive over the next year.

That’s especially true for BMO stock, which could outperform the banking sector in the next year. The bank’s Bank of the West acquisition is now bringing in a slew of new operations across the western area of the United States. The acquisition should see a 7% rise to earnings per share in 2024. Further, the bank should be able to achieve a US$2 billion run-rate by the first half of 2026, according to analysts.

Now the Bank of the West deal creates its own synergies. It should achieve US$800 million in cost synergies in the first half of 2024, which is 20% higher than the bank’s original expectations. So while the other banks continue to try and grow in any way they can, BMO stock already has a clear path of growth ahead of it.

Meanwhile, shares trade with a 5.22% dividend yield as of writing, providing huge income for today’s investors among dividend stocks. So as we continue into 2024, I would certainly want this dividend stock in my portfolio as well.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Rogers Communications. The Motley Fool has a disclosure policy.

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