Investing in dividend stocks can produce immediate income, provided you purchase them before the company’s ex-dividend date. This timing ensures you’re eligible for the upcoming payout. Unlike traditional stocks, which only deliver gains when you sell, dividend stocks provide regular cash payments, offering a steady stream of income without having to touch your original investment.
Many investors are drawn to high-yield dividend stocks because they can deliver higher income. But while those higher yields can be appealing, they can also signal trouble. A yield that seems too good to be true might indicate that the company is struggling, and its dividend might not be sustainable. That’s why it’s essential to look deeper and examine the company’s fundamentals.
A healthy dividend stock typically has strong financials, a sustainable payout ratio (which means it’s not stretching to pay dividends), and a history of stable or growing earnings. These companies have a reliable track record of paying and increasing dividends, making them safer bets.
While monthly dividend stocks are best suited to generate immediate income as they mimic a paycheque, here I’ll focus on a TSX stock that has quarterly payouts. Notably, the Canadian company offers an attractive yield of 7.4% and has a strong history of earnings and dividend growth.
My top dividend stock for regular income
While the TSX has many dependable dividend stocks, communications giant Telus (TSX:T) is my top pick for starting a passive income stream. With a current dividend yield of about 7.4%, backed by a sustainable payout ratio of 60–75% of free cash flow, Telus offers both attractive income and confidence in its ability to keep paying it.
The company is focused on rewarding its shareholders. Since 2004, Telus has returned over $21 billion to investors and has raised its dividend 27 times in the past 14 years. Even in uncertain economic conditions, it has maintained its dividend growth streak and recently raised its dividend by 7%.
Telus’ dividend payments are supported by its ability to consistently deliver profitable growth. Its growth is driven by continued investment in its broadband and wireless networks, including fibre and 5G infrastructure. These upgrades are fueling steady customer growth. In Q1 2025, Telus added 218,000 new subscribers, while its postpaid churn has remained under 1% for over a decade, reflecting solid customer loyalty.
Telus is also growing its connected device subscriber base as demand for Internet of Things (IoT) solutions rises. At the same time, it’s focusing on product innovation, streamlining operations, and expanding its sales channels, which are contributing to reliable earnings growth.
With earnings on the rise and capital spending beginning to ease, the foundation for long-term dividend growth remains solid.
Telus plans to grow its dividend by 3% to 8% annually through 2028. Its strong balance sheet, focus on profitably growing its subscriber base, and cost reduction efforts will cushion its bottom line and help drive its payouts.
The bottom line
For investors seeking immediate and reliable income, Telus stands out as a compelling choice. With a solid 7.4% dividend yield, a proven history of dividend growth, and strong fundamentals, it offers both stability and attractive returns.
Telus currently pays a quarterly dividend of $0.416 per share, meaning that investors holding 1,000 shares would receive $416 every quarter, totalling $1,664 annually.
| Company | Recent Price | Number of Shares | Dividend | Total Payouts | Frequency |
| Telus | $22.45 | 1,000 | $0.416 | $416 | Quarterly |
