The market is full of great opportunities for investors. Sometimes, the best move is to double up on stocks you already own and trust. This can be especially rewarding when those options to consider are well-established dividend stocks.
Two Canadian dividend stocks that stand out right now are Bank of Montreal (TSX:BMO) and Telus (TSX:T). Both offer attractive yields, long-term potential, and some defensive appeal.
Both stocks offer dependable dividends, strong fundamentals, and the kind of long-term reliability that makes doubling up a smart move in today’s market.
Here’s a look at why they both belong in your portfolio.
The reliable dividend powerhouse
BMO is one of Canada’s big bank stocks. In fact, BMO is the oldest of the big bank stocks and has been paying out dividends for nearly two centuries without fail. That’s a level of stability that spans multiple economic cycles.
Today, BMO has operations in both Canada and the U.S. Both markets provide a recurring, stable source of revenue for the bank that supports long-term growth and its growing dividend.
BMO’s growth is focused on the U.S. market, where it has expanded significantly over the past decade. In fact, thanks to that aggressive growth, BMO is now considered one of the larger lenders in the U.S., with a presence in 32 state markets.
Turning to dividends, BMO really shines. The bank’s strong capital position and conservative approach to lending make it a reliable top pick for long-term investors.
As of the time of writing, BMO’s dividend carries a yield of 3.5%. The bank has also provided annual upticks to that dividend going back over a decade without fail.
For investors looking to double up on a core holding, BMO offers the right mix of stability, income, and long-term growth potential.
The high-yield telecom with recovery potential
Telus is the other option for investors looking to double up on some dividend stocks right now. As one of Canada’s big telecom stocks, Telus boasts a reliable business model backed by multiple subscriber-based services that complement one another.
Telus’ mobile and fibre networks are fueling subscriber growth while strengthening the company’s defensive service offering. Adding to that growth engine is the digital services arm. Telus provides services to specific niche segments of the market, such as healthcare and agriculture. Both offer long-term potential and add to Telus’s predictable cash flow, and by extension, its dividend.
Telecoms are capital-intensive businesses. Over the past year, the impact of both higher interest rates and increased capital spending has put pressure on the stock. As the stock retreated, the dividend yield climbed.
That led Telus to announce a freeze on further dividend increases. The company has not gone as far as to suggest it would slash its yield. As of the time of writing, Telus offers one of the highest yields on the market, an attractive 8.3%.
The combination of a high yield, defensive business model, and discounted share price has created an appealing entry point for long-term investors. Investors doubling up on Telus can lock in that strong yield while positioning for an eventual recovery.
Why these two dividend stocks work well together
All stocks carry risk, including defensive names like BMO and Telus. Fortunately, the defensive appeal of these two stocks makes them ideal candidates for any well-diversified portfolio.
The stocks also complement each other. BMO provides long-term stability and dependable dividend growth, while Telus offers a higher yield and a recovery opportunity. Together, they create a balanced income foundation that can weather volatility while still delivering meaningful cash flow. Doubling up on both gives investors a blend of safety, yield, and long-term compounding.
