TFSA Investors: 2 Dividend Juggernauts I’d Buy and Hold for Life

Enbridge (TSX:ENB) and BCE (TSX:BCE) are dividend juggernauts that look worth buying and holding for decades.

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TFSA (Tax-Free Savings Account) investors should pursue high-quality companies that have a history of paying dividends even during the ugliest economic times.

Undoubtedly, it’s become somewhat harder for select firms to keep raising their dividends amid various industry headwinds. Regardless, dividend knights, which I personally define as companies that continue to raise dividends through the most turbulent of times, such as Enbridge (TSX:ENB), seem to be in a class of their own.

Indeed, the pipeline giant has faced considerable headwinds for quite some time. Yet, it still found a way to keep on increasing its payout. In a way, Enbridge stock is the ultimate Canadian dividend darling with a management team that puts dividend investors first.

As we head into the second quarter of 2024, investors may wish to give the quality dividend juggernauts a second look before they have a chance to make up for lost time on the back of various trends. Perhaps lower interest rates or the steady easing of macro and industry headwinds will be enough to help the market’s top dividend juggernauts gravitate higher in a sustainable fashion.

Without further ado, here are two top dividend juggernauts I’d stash on my watchlist. And if you’re a TFSA investor who’s been meaning to rotate funds from a TFSA savings account to high-yield stocks, the following look ripe for picking up right here.

Enbridge

Undoubtedly, it’s hard to look past Enbridge due to its rich history of rewarding long-term passive income investors with steady dividends and raises, even amid elevated industry uncertainties. The stock has been incredibly volatile lately, but I do think the lows hit last autumn will hold up. Even if they don’t, the yield is sure to draw in some pretty heavy crowds.

At writing, shares yield around 7.6%. That’s a rich payout that I believe is far more secure than most other 7-8% yielders on the TSX Index these days. Of course, the pipeline industry will always be a choppy place to invest, as regulatory hurdles impact future projects.

Either way, though, Enbridge’s cash flow stream is hard to ignore, even if it doesn’t get its way with the timing of future projects. All considered, ENB stock is a great buy for value and passive income!

BCE

BCE (TSX:BCE) is another TSX dividend juggernaut that’s seen its dividend yield rocket higher as shares sagged steadily lower over the past two years. Just like that, BCE stock is in descent mode again, with the stock shedding a massive 9.4% over the past month alone.

That’s the kind of volatility that would likely scare even the hungriest of passive income investors. Undoubtedly, the dividend yield, which now sits at a whopping 8.63%, could be trimmed. We’ve heard a lot of chatter about how large a dividend reduction the stock could endure.

While I think a slight reduction could be in the cards if the worst happens, such a cut may already be baked into the stock at $45 and change. Either way, the stock’s oversold and overdue for a potential bounce as it continues making new multi-year lows.

There’s no easy way out for BCE, but for those looking to buy and hold for 10 to 20 years, I do think the long-term rewards (dividend income and capital gains) will prove worth the risk.

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 Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

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