2 TSX Dividend Stock With Over 8% Yields to Buy Today

You can buy these top TSX dividend stocks with over 8% yields in 2024 as they offer both steady income and growth potential.

| More on:
Increasing yield

Image source: Getty Images

Canadian stocks have started 2024 on a bullish note, as the main TSX benchmark has already risen over 5% year to date. While growing expectations of multiple interest rate cuts in the near term are driving stocks higher, the stock market may still remain volatile in the near term due mainly to the ongoing macroeconomic uncertainties, especially if the Bank of Canada decides to keep the monetary policy restrictive for an extended period to fight inflation.

In such uncertain market conditions, holding quality dividend stocks in your portfolio can help you earn consistent and stable passive income. Moreover, some high dividend-paying stocks can also generate strong capital gains in the long run due to their solid underlying fundamentals.

In this article, I’ll talk about two such TSX dividend stocks with high yields of over 8% and strong long-term fundamentals to support growth. These stocks could be great buys for income-seeking investors today.

BCE stock

Shares of the Canadian communications giant, BCE (TSX:BCE), have been trading on a negative note for the last couple of years as an unstable economy and shrinking consumer spending hurt its business growth. It currently has a market cap of $41.9 billion as its stock trades at $45.95 per share with about 12% year-to-date losses. Nonetheless, the recent declines have made the annualized dividend yield of this fundamentally strong dividend stock look even more attractive, which currently stands at 8.7%.

Even as the challenging macroeconomic scenario has affected its financials in the last few years, BCE has maintained its dividend payouts intact. In fact, the communications giant announced a 3.1% YoY (year-over-year) increase in its annual dividends last month, marking its 16th year of dividend growth in a row.

Also, BCE has a solid balance sheet with a high liquidity position that could help it weather the ongoing economic challenges crisis without much trouble. Moreover, the company is investing heavily in expanding its 5G network across the country, which could boost its long-term growth prospects. These are some of the key reasons BCE stock could be a great buy right now for income-seeking investors looking for stable and high dividends.

Peyto Exploration stock

Peyto Exploration & Development (TSX:PEY) is another high-yield TSX dividend stock you can consider adding to your portfolio for passive income. This Calgary-headquartered company is one of the lowest-cost natural gas producers in Canada, with a market cap of $2.9 billion. PEY stock currently trades at $14.86 per share after rallying by more than 23% year to date. The company distributes its dividend payouts every month and offers an impressive annualized dividend yield of slightly less than 9%.

  • We just revealed five stocks as “best buys” this month … join Stock Advisor Canada to find out if Enbridge made the list!

Despite weaker oil and gas prices, Peyto’s total revenue rose 8.5% YoY in the fourth quarter of 2023 to $325 million with the help of a solid 13% increase in production. As a result, it posted adjusted quarterly earnings of $0.46 per share, exceeding Bay Street’s expectations of $0.42 per share. As the company continues to focus on reducing operating costs and maintaining its production levels in 2024, its share prices could continue to trade on a firm note.

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

Dividend Stocks

The Top Canadian REITs to Buy in April 2024

REITs with modest amounts of debt, like Killam Apartment REIT (TSX:KMP.UN), can be good investments.

Read more »

Technology
Dividend Stocks

The Smartest Dividend Stocks to Buy With $500 Right Now

Some of the smartest buys investors can make with $500 today are stocks that have upside potential and pay you…

Read more »

Various Canadian dollars in gray pants pocket
Dividend Stocks

2 Dividend Stocks to Buy in April for Safe Passive Income

These TSX Dividend stocks offer more than 5% yield and are reliable bets to generate worry-free passive income.

Read more »

protect, safe, trust
Dividend Stocks

How to Build a Bulletproof Monthly Passive-Income Portfolio With Just $1,000

If you've only got $1,000 on hand, that's fine! Here is how to make a top-notch, passive-income portfolio that could…

Read more »

Senior Couple Walking With Pet Bulldog In Countryside
Dividend Stocks

CPP Insights: The Average Benefit at Age 60 in 2024

The average CPP benefit at age 60 in average is low, but claiming early has many advantages with the right…

Read more »

thinking
Dividend Stocks

Why Did goeasy Stock Jump 6% This Week?

The spring budget came in from our federal government, and goeasy stock (TSX:GSY) investors were incredibly pleased by the results.

Read more »

woman analyze data
Dividend Stocks

My Top 5 Dividend Stocks for Passive-Income Investors to Buy in April 2024

These five TSX dividend stocks can help you create a passive stream of dividend income for life. Let's see why.

Read more »

investment research
Dividend Stocks

5 Easy Ways to Make Extra Money in Canada

These easy methods can help Canadians make money in 2024, and keep it growing throughout the years to come.

Read more »