Telus (TSX:T) stock has to be one of the most talked-about dividend stocks of the year. The 9% yield is probably to thank for that. Either way, there are other dividend plays that deserve just as much attention as the telecom titan with one of the most swollen yields on the entire TSX Index. And in this piece, we’ll look at two dividend stocks that investors might wish to buy alongside Telus (or instead of it) for dividend appreciation and potentially deep value.
Of course, the following pair won’t have dividend yields that come anywhere close to Telus’s towering 9% yield. If you just have to have such a massive payout and are prepared for no growth and perhaps a higher chance of a reduction over the next three years, Telus may still be the better bet. However, if you prioritize stability and less volatility over the size of the yield, the following are also worth keeping on the radar.
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SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) shares might not have a 9%-yielding dividend, but the 6.91% distribution yield is no slouch either, especially as shares of the retail real estate investment trust (REIT) look to add to their momentum in the new year.
Undoubtedly, the REIT space has been weighed down for quite some time, but as rates fall and investors gravitate towards lower-volatility income sources, I like the Canadian REITs as a place to diversify. SmartCentres REIT stands out as a great name to consider, especially if you’re light on real estate plays.
Aside from the nearly 7% yield, shares might be a timelier bet, especially as recent momentum leads to a much-awaited breakout. With an ambitious project pipeline (which could power distribution growth longer term) and an incredibly high occupancy rate that can stay high, even when economic conditions get rockier, thanks in part to its high-quality retail tenant base, I’d look no further than the name if you seek a fat payout and a slightly lower beta (currently at 0.90).
Leon’s Furniture
Shares of the popular Canadian furniture retail play Leon’s Furniture (TSX:LNF) currently sport a 3.36% dividend yield. That’s far less than what Telus can offer right here, but in terms of dividend-growth potential and capital gains, I think Leon’s is also worth checking out, especially as shares look to breakout on the back of consumer spending strength.
Shares are off just 5% from all-time highs, and with a mere 11.2 times trailing price-to-earnings (P/E) multiple on the stock, there’s plenty of room for multiple expansion. The neglected $1.95 billion mid-cap stock might be more of a hidden gem than anything else, but for investors seeking deeper value in a stock market that some would consider to be getting expensive, I like the name, especially as the firm looks to pursue a REIT spin-off, which might create considerable value for shareholders.
All considered, Leon’s Furniture is a great discretionary play with a strong dividend and perhaps more upside than most other plays as the Canadian economy looks to pick up speed in the first half of 2026.
