If you stood on the sidelines during the impressive April-July rally in the TSX Index, you may be wondering if it’s better to just say you missed it and sit on your hands for a while longer as you wait for the next inevitable stock market correction. Indeed, 10–15% corrections aren’t all that uncommon, after all. And with stocks recovering in such a roaring fashion, it’s certainly not out of the question to have another near-term pullback for the broad Canadian market.
Who knows? As Trump’s tariff talks pick up in July, we may see another round of panic selling similar to Liberation Day.
Despite the rising risk of correction, I believe that new investors shouldn’t stay glued to the bleachers as they wait for a market event that probably won’t occur in a timeframe that’s all too convenient. Indeed, how many times have you simply waited for a pullback, only to witness a continued rally that caused you to give in and buy shares of your favourite firms at even higher prices?
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Timing the TSX is tempting. But don’t ignore the value that exists today.
Indeed, there’s a risk of being left out, especially if you’re a new investor who’s more inclined to time the market over the short term. Buying corrections sounds pretty easy on paper. But the wait can be a long one, and even if it happens, there’s no guarantee you’ll be able to pick up shares of what you want at a price you’ve been targeting. Additionally, buying dips may no longer be effective once the next prolonged bear market emerges.
For DIY investors, being more selective in such a market could pay big dividends. And in this piece, we’ll have a look at a single name that I think fits the bill as a low-cost dividend stock worth buying, even as the TSX Index goes from lukewarm to quite heated.
Telus
Telus (TSX:T) is the Canadian telecom firm we all know and love. Its stock has been stuck in the bargain bin for a few years now. And while the industry-wide price wars and a negative shift in consumer spending could continue to work against Telus and the rest of the industry going into the new year, I do find that the stock is cheap enough such that it isn’t going to take a great deal to move the needle higher on a stock that many long-time income investors have parted ways with.
Indeed, Telus has kept its payout intact and seems poised to continue doing so over the foreseeable future, even if industry headwinds don’t fade away in the back half of the year. For a 7.6%-yielder, the dividend is quite well-covered. And while I wouldn’t get my hopes up for more dividend hikes going into 2026 until the telecom industry is dealt a bit of relief for a change, I find shares of T to be one of the dividend value plays to keep on the radar.
Sure, the TSX Index is looking up, but for Telus stock, it has a long road ahead of it. And it’s worth backing if you want a secure payout and worthy managers who have the competence to sail through the typhoon of telecom tremors. In my books, Telus is still a blue chip and one that’s to be relied on as long as its dividend stays healthy.
