2 TSX Dividend Stocks Paying Big Income in a Bearish Market

·4 min read
money cash dividends
Image source: Getty Images

Written by Demetris Afxentiou at The Motley Fool Canada

Is your portfolio well diversified? Finding a good mix of income- and growth-focused investments is something every investor should consider. And when it comes to dividend stocks paying big income, there’s no shortage of options on the market.

Here’s a look at two intriguing dividends stocks paying big income right now, irrespective of which way the market moves.

Earn big income from this big telecom

Canada’s telecoms are among the best long-term options for investors to consider. Chief among those big telecoms is BCE (TSX:BCE), which remains on the must-have dividend stocks paying big income.

BCE has been paying out that dividend for well over a century without fail. If that’s not enough, BCE has provided a generous annual uptick to that dividend for two decades.

As of the time of writing, the yield on that dividend works out to a juicy 6.42%. This means that a $40,000 investment in BCE will generate a first-year income of over $2,500.

Apart from that yield, there are a few other reasons why BCE is one of the dividend stocks paying big income that investors should consider.

First, there’s timing.

Over the trailing 12-month period, BCE is trading down 10%. This translates into a unique opportunity for long-term investors looking to buy the stock at a discount.

Prospective investors should also consider the long-term opportunity and defensive appeal that come with BCE.

Telecoms are incredibly defensive investments, and that appeal has only grown since the pandemic started. Specifically, there are more people working and studying in a remote capacity than ever before. This elevates the need for a fast and stable internet connection to one of necessity.

Additionally, the growing necessity of a fast and secure mobile connection is no longer seen as a luxury, but a must-have in today’s digital environment. Factor in the strong demand (and increased data needs) for a 5G connection, and you have immense long-term growth opportunity.

In short, BCE is a great long-term growth pick that offers a growing juicy yield as well.

A massive payout from a growing (and evolving) business

Most investors have heard of Enbridge (TSX:ENB) as a viable investment, but fewer see the energy infrastructure behemoth as a dividend stock paying big income.

Let’s set the record straight.

Enbridge generates the bulk of its revenue from its massive pipeline network. In fact, that pipeline network is the largest and most complex system on the planet. Enbridge massive amounts of crude and natural gas each day.

That pipeline hauls nearly one-third of North American-produced crude and one-fifth of the natural gas needs of the U.S. market. Prospective investors should also note one more point. Enbridge charges for use of that network and not by the price of the commodity.

In other words, Enbridge generates a recurring revenue stream that is not impacted by the volatile price of oil. This gives Enbridge massive defensive appeal, but there’s still more to love.

Enbridge also boasts a growing renewable energy business. The company boasts a growing portfolio of facilities located across Europe and North America. Enbridge has invested over $8 billion into the segment over the past two decades.

Given the growing importance of renewables, that segment is bound to become a growing part of Enbridge’s revenue stream over the longer term.

Turning to income, Enbridge offers a quarterly dividend and boasts a history of annual bumps that goes back nearly three decades. Today, that yield works out to an absolutely insane yield of 7.10% — handily making it one of the top-income stocks on the market.

It also means that investors with $40,000 to allocate to Enbridge can expect an income of over $2,800 in the first year.

Like BCE, Enbridge is also trading at a discount over the trailing 12-month period. In the case of Enbridge, that discount is a juicy 12%.

Will you buy the dividend stocks paying big income?

No stock is without risk, and that includes both stocks mentioned above. Fortunately, in the case of BCE and Enbridge, both stocks are well-established leaders in their segments.

In my opinion, one or both would do well as part of a larger, well-diversified portfolio.

The post 2 TSX Dividend Stocks Paying Big Income in a Bearish Market appeared first on The Motley Fool Canada.

Free Dividend Stock Pick: 7.9% Yield and Monthly Payments

Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account.

That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!

Here’s the best part: We’re giving this dividend pick away for FREE today.

Claim your free dividend stock pick * Percentages as of 11/29/22

More reading

Fool contributor Demetris Afxentiou has positions in Enbridge. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.