Finding strong Canadian stocks can feel like a balancing act these days. Between market volatility, interest rate swings, and economic uncertainty, it’s not always easy to know where to put your money. But if you’re investing for the long term and want steady income along with a little peace of mind, a couple of stocks on the TSX are worth serious attention right now. I’m talking about BCE (TSX:BCE) and Hydro One (TSX:H). Both offer stable dividends and dependable performance, exactly what you’d want to build wealth over time.
Source: Getty Images
BCE
Let’s start with BCE. This telecom giant has been through a lot lately. This month, BCE made headlines for slashing its dividend by 56%, its first cut in 17 years. Naturally, that spooked investors. The move came as the company struggled with higher costs, legacy landline declines, and a challenging media landscape. But if you look past the headlines, there’s still a lot to like about BCE as a long-term hold.
For the first quarter of 2025, BCE reported net earnings of $683 million, a sharp improvement from the $517 million it posted a year earlier. However, adjusted earnings dipped slightly to $633 million or $0.69 per share, compared to $654 million or $0.72 a year ago. Revenue was also down, landing at $5.9 billion versus $6.01 billion in Q1 2024. Still, BCE managed to generate $713 million in free cash flow, a healthy boost that gives it breathing room to invest and maintain its revised dividend. That dividend, by the way, sits at $1.75 annually. At the current share price of around $31.50, that’s still a yield north of 5.5%, which is nothing to sneeze at.
The real reason BCE is still a buy is because it plays a crucial role in everyday Canadian life. It provides internet, mobile, and media services to millions across the country. Even as people cut cords or shop around for cheaper plans, BCE remains a key player. The TSX stock also invests in fibre and 5G, which may take time to pay off but could deliver long-term growth. For investors who can stomach a bit of short-term noise, BCE offers a solid opportunity to buy a blue-chip name on sale.
Hydro One
Now, let’s look at Hydro One. This is Ontario’s largest electricity transmission and distribution utility, and while it might not be flashy, it’s built for reliability. The beauty of Hydro One is that it provides a service everyone needs, regardless of what the economy is doing. It isn’t at the mercy of consumer spending habits or global supply chains. It’s about as stable as it gets.
For the first quarter of 2025, Hydro One delivered net income of $361 million, up from $296 million the year before. Basic earnings per share (EPS) rose to $0.60 from $0.49, driven by higher transmission revenues and smart cost control. The TSX stock also raised its dividend again, announcing a quarterly payout of $1.26 per share annually. That brings its yield to just under 2.4% based on the current stock price of around $49.75.
What makes Hydro One particularly attractive is its regulatory framework. Because it operates under regulated rate structures, its revenue and returns are relatively predictable. This gives investors a level of stability that’s rare in today’s market. It also helps that Hydro One continues to expand its capital investment program, upgrading infrastructure and improving grid reliability, all while keeping its balance sheet in check.
Bottom line
Together, BCE and Hydro One complement each other nicely. One gives you exposure to telecommunications and media, the other to utilities. Both serve essential needs. Both offer dividends you can count on. And both are trading below their long-term highs, giving you a chance to scoop them up at a more reasonable price. In a world where markets bounce around at the hint of a headline, it’s refreshing to own TSX stocks that quietly get the job done. BCE and Hydro One may not be the most exciting names out there, but for building long-term wealth, boring can be beautiful.
