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Dividend Giants: 2 TSX Names to Watch

Jared Seguin
·4 min read
Various Canadian dollars in gray pants pocket

With volatility calming down in the market, some investors are looking to pick up more stocks. There are some TSX dividend giants out there offering solid long-term value.

In today’s economy, with still plenty of uncertainty afoot, picking dividend stocks requires careful consideration. That’s because many stocks have been rocked significantly this year.

As a result, many stocks have cut dividends this year, or appear poised to do so. So, investors looking for reliable dividend income must pick out stocks with dependable dividends.

That often comes down to finding stocks that are not only stable now but that have a solid path for growth in the future. Dividend growth is vital for long-term investing success.

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Today, we’ll look at two dividend giants that might be worth keeping an eye on.

Telus

Telus (TSX:T)(NYSE:TU) is a major Canadian telecom stock that provides a range of services through its subsidiary Telus Communications. It’s long been a favourite among dividend-hungry investors looking for stocks with good growth prospects.

Telus is well established in the telecom space, but is also making major strides in other areas. One such area is digital healthcare, where its Telus Health branch has been delivering new solutions during a time when they’re needed most.

Plus, with 5G networks becoming a reality in Canada, Telus has further room to cement itself in the telecom space.

Telus’ combination of proven sources of revenue and new exciting growth paths gives it an attractive aura to investors. It has a clear plan to grow its dividend over the next five years as well, despite a bit of a disruption this year.

As of this writing, this dividend giant is trading at $25.44 and yielding 4.9%. With a yield like that, it’s easy for Canadian investors to get excited.

When a stock like Telus is carrying a near-5% yield, there’s potential for solid total returns in the long run. Given its commitment to paying and growing its dividend, it’s a stock worth taking note of.

Over the long term, Telus is a solid telecom blue-chip play that can deliver growth both in its share price and dividend.

BMO

Bank of Montreal (TSX:BMO)(NYSE:BMO) is a massive Canadian bank, with a strong presence in the U.S. to boot. It’s long paid its investors a handsome dividend combined with steady growth.

When talking about dividend giants on the TSX, it would be remiss to exclude a stock like BMO. It’s a prime example of dividend stability over the long run.

In fact, BMO has paid a dividend every single year since 1829, which means that despite all the challenges faced since then, BMO has continued to deliver value to its investors.

With a track record like that, dividend investors should be very familiar with BMO. While past performance isn’t a great indicator of future performance, a history like that simply speaks volumes to BMO’s reliability.

As of this writing, this dividend giant is trading at $98.33 and yielding 4.32%. While it’s not the most jaw-dropping yield around, it’s certainly more than palatable given that it’s attached to a name like BMO.

With a payout ratio of around 56%, there’s nothing for investors to worry about when it comes to this dividend’s stability. BMO can be a great building block for a dividend-heavy portfolio.

Picking dividend giants

Both Telus and BMO offer investors great value when it comes to dividend investing. In the long run, they can both deliver solid total returns.

If you’re looking at picking up shares of some dividend giants, these TSX stars deserve consideration.

The post Dividend Giants: 2 TSX Names to Watch appeared first on The Motley Fool Canada.

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Fool contributor Jared Seguin has no position in any of the stocks mentioned.

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