My Top No-Brainer, High-Yield Dividend Stock to Buy in 2024

This TSX stock that stands out for its high yield and sustainable payouts.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Investing in top dividend stocks with high yields is a proven strategy to start a passive-income stream. Besides offering steady dividend income, high-yielding stocks provide a hedge against inflation, making them attractive options for investors looking for a relatively safe income stream, even amid market volatility.

However, to generate worry-free income, it’s essential to focus on companies with strong fundamentals and a solid history of consistently paying and increasing dividends, regardless of the economic situation. Additionally, it’s important to ensure that the company has a growing earnings base and a sustainable payout ratio, which will support future dividend payments.  

While several Canadian stocks offer high yields, let’s look at a TSX stock that stands out for its high yield and sustainable payouts. Investors can rely on this Canadian company to boost their passive income.

Top option for safe income and high yields

One of the best high-yield stocks on the TSX is BCE (TSX:BCE), Canada’s leading communications company. BCE is a dominant player in the telecom industry, offering internet, TV, and wireless services.

As the largest local exchange carrier in Canada and a major wireless operator, BCE has built a reputation for consistently growing dividends to its shareholders.

BCE currently pays a quarterly dividend of $0.998 per share and has increased its dividends for 16 consecutive years. For 2024, the company raised its annual dividend by 3.1%, bringing it to $3.99 per share. With a robust dividend yield of 8.2%, based on a closing price of $48.59 as of September 5, BCE is a compelling choice for income-focused investors.

BCE’s solid dividend payouts, even in tough economic times, reflect its commitment to rewarding shareholders. This consistency makes it an excellent option for investors looking for both a high yield and a reliable income stream.

Created with Highcharts 11.4.3Bce PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

What makes BCE a reliable income stock?

BCE has earned a reputation for being a dependable income stock. Despite facing economic challenges and fierce competition in the wireless industry, BCE continues to generate steady profits, allowing it to maintain and even grow its dividend payments. This consistent performance makes BCE a strong option for investors looking for reliable income.

The key behind BCE’s solid payouts is its ability to grow earnings regardless of operating conditions. While BCE has faced pressure from competitive pricing and aggressive promotions in the telecom sector, the company has remained focused on improving profitability. By driving efficient subscriber growth and cutting costs, BCE has managed to navigate both economic and competitive hurdles, ensuring it stays on track and enhances shareholders’ value.

The company’s high-performance broadband fibre network and fast mobile 5G service consistently drive its user base. Additionally, BCE is leveraging the bundling of mobile and Internet services to reduce churn and boost value, which helps support stable revenue streams.

Another growth area for BCE is its media division, Bell Media, which is evolving from traditional broadcasting to a digital-first approach. By offering advanced advertising options, the company has seen a rise in digital ad revenue, further boosting its financial performance.

BCE is also making strides in new subscriber growth by managing promotions more effectively and ensuring subscriber numbers increase healthily and sustainably. As BCE expands its customer base and grows profitably, the company is well-positioned to maintain and grow its dividend growth.

The telecom giant is capitalizing on emerging growth areas like digital transformation, cloud computing, and security services. These initiatives are expected to accelerate the company’s business growth and drive higher revenue and earnings. This will support its future dividend increases, making BCE an attractive choice for income-focused investors.

Should you invest $1,000 in Aritzia right now?

Before you buy stock in Aritzia, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Aritzia wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

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 Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

These Canadian stocks have paid dividends for decades, making them reliable investments to generate regular passive income.

Read more »

Dividend Stocks

3 Canadian REIT Stocks to Buy and Hold for the Next Quarter-Century

These three Canadian REITs trade cheaply and are highly reliable, making them some of the best stocks you can buy…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »