If you’re a dividend investor who’s looking for reliable Canadian companies that pay a solid yield, which you can buy and hold for the long haul, blue-chip stocks are some of the best on the market.
Blue-chip stocks are massive, well-established companies that are often household names or dominate their industries. And since these stocks have such a long track record of growing and scaling their operations, they’re typically financially sound and can pay attractive dividends.
In many cases, some of the best blue-chip stocks to buy are in companies that consistently generate billions in cash flow, allowing them to both return cash to investors and continue investing in the future growth of their business.
So, if you’re looking for high-quality Canadian dividend stocks to buy now, here are two top blue-chip stocks with dividend yields of more than 5%.
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One of the best blue-chip dividend stocks that Canadian investors can buy
There’s no question that one of the best dividend stocks Canadians can buy, blue chip or not, is Enbridge (TSX: ENB), the $142 billion energy infrastructure stock.
There are several reasons why Enbridge is one of the best companies in Canada to buy and hold for years, and just like its operations, they’re all tied together.
Firstly, the size and scale of Enbridge not only make it one of the most dominant companies in its industry, but they also make Enbridge essential to the North American economy.
Enbridge’s extensive network of pipelines transports roughly 30% of North America’s crude oil and 20% of the natural gas consumed in the United States. On top of these core operations, though, Enbridge is well-diversified within the energy sector, which both expands its footprint and scale while also helping to mitigate some risk.
Another reason Enbridge is one of the best blue-chip stocks Canadian investors can buy is that its business is made up of long-life assets that consistently generate massive cash flow without needing much maintenance year to year.
That’s why Enbridge can continue to increase its dividend each year while retaining enough capital to continue expanding its business, ensuring continued dividend growth down the road.
In fact, not only does Enbridge offer a current dividend yield of roughly 5.8%, but it also has a dividend-growth streak of 30 years, showing what a reliable dividend stock the Canadian blue chip is.
A top telecom company with a dividend yield of 5.3%
In addition to Enbridge, another high-quality Canadian blue-chip stock that dividend investors should add to their watchlist today is BCE (TSX: BCE).
Although BCE is a telecom stock, it has many of the same qualities as Enbridge that make it a top pick for passive-income seekers.
First off, with over 10 million subscribers and a massive national network of telecommunications infrastructure, BCE provides services that Canadians rely on every day.
Furthermore, in addition to the reliable and recurring revenue BCE earns, it also owns long-life assets that generate considerable cash flow for years.
The main difference between the two is that BCE and its telecom peers have spent billions in recent years upgrading their infrastructure as new technology, such as 5G, has come online.
Now that most of its national network has been upgraded, though, and with BCE’s dividend looking much more sustainable today, the company can shift its focus toward growing both its earnings and the dividend going forward.
So, if you’re looking for a top blue-chip stock to buy now, BCE is one that has the potential to reward Canadian investors for years.
