Dividend investors: 2 stars Blue Chip TSX
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The TSX is home to many top stocks that dividend investors can choose from. Blue-chip stocks with various sources of income are often great options when it comes to investing dividends.
Typically, dividend investors look for stocks with stable growth and dividend potential. It can be risky to choose a stock with high growth or with an unusually high dividend.
After all, a hefty dividend that’s doomed to be cut won’t do you any good in the long run, especially compared to a more reliable supply of a blue chip stock.
While these types of stocks are attractive to certain styles of investing, long-term dividend investors are likely to want to stick with large, blue-chip stocks.
Today we will take a look at two TSX superstars that are ideal for long term investments with an emphasis on dividends.
Telus (TSX: T) (NYSE: TU) is a massive telecommunications stock on the TSX with great appeal to dividend investors. It offers both attractive share price growth potential and a healthy dividend.
With such a secure footing in an important sector of the Canadian market, this is a blue chip security that investors can count on. Telus also has interesting efforts outside the direct telecommunications market, such as the Telus Healthcare division.
Telus Healthcare is a major player in the field of digital healthcare solutions and could be a growth engine in the future. It’s things like these that help make Telus a well-rounded option for long-term investors.
As of this writing, Telus is trading at $ 28.08 and is reporting 4.5%. That’s quite the eye-catching performance when you consider that it’s tied to a name like Telus.
The rollout of 5G networks across Canada is also expected to help drive demand for more telecommunications services and Telus could benefit as well.
Long-term dividend investors looking for blue-chip stock that combines growth and reliability will want to keep an eye on Telus.
Bank of Montreal (TSX: BMO) (NYSE: BMO) is a leading Canadian banking stock, which has long been a favorite with dividend investors.
BMO has a strong presence in the United States and Canada and a wide range of revenue sources that help it deliver results for investors.
BMO’s dividend stability is beyond doubt, as it has paid a dividend every year since 1829. In addition, its dividend may increase in the future as the economy opens up.
As of this writing, this dividend investor’s star is trading at $ 131.49 and earning 3.22%. While this is certainly not a gigantic return, investors should keep in mind that BMO’s dividend is expected to experience strong upward momentum going forward.
BMO offers investors a great way to get started in the Canadian banking industry with a reliable option.
Dividend Investor Strategy
Both T and BMO may appeal to dividend investors who are there for the long term. These blue-chip giants both offer unique advantages, but what they have in common is stability and a phenomenal track record.
If you are looking to add dividend to your investment reserve, these two heavyweights are ideal options.