2 High-Yield TSX Dividend Stocks to Buy for 2024

Here are two high-yielding TSX dividend stocks you can buy in 2024 and hold for years to come.

| More on:

Most stocks on the Canadian market ended the year 2023 on a surprisingly strong note, as growing hopes of upcoming interest rate cuts triggered a rally in growth stocks in the final quarter of the year. However, growth stocks have largely failed to maintain this optimism at the start of 2024 after the U.S. Federal Reserve’s latest meeting minutes hinted that interest rates may remain elevated for long if needed to fight persistent inflation. Considering this volatile macroeconomic scenario, it could be a good idea for investors to hold some reliable dividend stocks in their portfolios in 2024.

In this article, I’ll highlight two such trustworthy, high-yielding TSX dividend stocks you can buy today.

BCE stock

The verdant-headquartered communications giant, BCE (TSX:BCE), ended 2023 deep in the negative territory, despite the TSX Composite Index’s more than 8% rise during the year. The stock has slid by around 10% in the last six months to currently trade at $54.29 per share, trimming its market cap to $49.4 billion. Nonetheless, these recent declines in share prices have made its annualized dividend yield look even more attractive, which currently stands at 7.1%.

In the last two years, the challenging economic environment has badly hurt the global advertising market by affecting demand and spending. Although this factor continued to trim BCE’s profit margin last year, the company’s financial growth remained stable due mainly to its well-diversified revenue streams and strong financial position.

In the first three quarters of 2023, the company’s total revenue grew positively by 2.6% YoY (year over year) to $18.2 billion with strong performance of its wireless segment. This growth drove BCE’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) up by 1.1% YoY to $7.9 billion during the same period, reflecting the company’s ability to continue performing well even in a difficult market environment. Besides its robust financials, BCE’s years-long track record of sustainable dividend growth makes this high-yielding TSX dividend stock even more attractive.

TC Energy stock

TC Energy (TSX:TRP) could be another trustworthy TSX dividend stock with a high-dividend yield to buy in 2024. The company mainly focuses on providing a variety of transportation and storage solutions to North America’s energy sector and generates most of its revenue from the United States.

After witnessing about 12% value erosion in the previous two years, TRP stock currently trades at $52.79 with a market cap of $54.6 billion. It has witnessed a minor 2% increase in its share prices in the first week of January 2024. At this market price, this top TSX dividend stock currently offers an attractive 7% annualized dividend yield.

Even as weaker oil and gas prices affected the financial growth of most energy companies, growing demand for its services drove TC Energy’s revenue up by 7% YoY to $11.7 billion in the first three quarters of 2023 combined. In these nine months, the company’s strong operational performance also strengthened its adjusted EBITDA by 9.2% YoY to $7.9 billion. I expect TC Energy to maintain its strong financial growth trends in the future as well as it continues to work towards the completion of major projects, including Coastal GasLink.

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.

The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

chart reflected in eyeglass lenses
Dividend Stocks

U.S. Tech Stocks Are Incredibly Expensive Right Now, and This Time Isn’t Different

U.S. tech stocks are pricey, Canadian ETFs like iShares S&P/TSX Capped Composite Index Fund (TSX:XIC) are cheap.

Read more »

a man relaxes with his feet on a pile of books
Dividend Stocks

A Top ETF to Buy With $2,000 and Hold Forever

The oldest and one of the largest Canadian ETFs is an ideal option for long-term investors.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

CRA Update: No Taxes on Your First $16,129 in 2025!

Here's what the basic personal amount tax credit and recent TFSA increase means for your finances.

Read more »

Person holding a smartphone with a stock chart on screen
Dividend Stocks

Is Telus Stock a Buy for its Dividend Yield?

Telus is down 12% in 2024. Is the stock now oversold?

Read more »

Data center woman holding laptop
Dividend Stocks

Buy 5,144 Shares of This Top Dividend Stock for $300/Month in Passive Income

Pick up the right dividend stock, and investors can look forward to high passive income each and every month.

Read more »

Canadian dollars are printed
Dividend Stocks

Transform Your TFSA Into a Cash-Creating Machine With $15,000

If you have a windfall of $15,000, putting it in a TFSA is a great start. But investing it in…

Read more »

woman retiree on computer
Dividend Stocks

1 Reliable Dividend Stock for the Ultimate Retirement Income Stream

This TSX stock has given investors a dividend increase every year for decades.

Read more »

calculate and analyze stock
Dividend Stocks

8.7% Dividend Yield: Is KP Tissue Stock a Good Buy?

This top TSX stock is certainly one to consider for that dividend yield, but is that dividend safe given the…

Read more »