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Canadian investors can find a wide range of stocks on the TSX which are beneficial for various investment strategies. Dividend stocks are some of the strongest long-term stocks you can find on the TSX.
These are stocks with stable dividends and reliable growth in stock prices. While these stocks usually don’t shed some light on it in terms of single-year returns, they do very well over time.
However, even within the largest basket of dividend-paying stocks, investors still have a lot of work to do in choosing specific stocks. Some of these stocks offer returns that are too good to be true, while others are incredibly reliable.
For the best long-term results, investors are likely to want to stick with more reliable dividend-paying stocks. They are top-notch favorites with a great track record and the means to perform well in the future.
Today we’re going to take a look at two of those blue-chip TSX stars that are reliable long-term options.
Toronto-Dominion Bank (TSX: TD) (NYSE: TD) is a leading Canadian bank and has long been one of the highest dividend paying stocks on the TSX.
TD has long been a great example of a stock with great long-term total return potential. It not only offers attractive share price growth, but also an incredibly reliable dividend.
TD is able to deliver this kind of performance because of its strong revenue stream. The stock is diversified geographically and in several sectors so that it is advantageous for investors.
Dividend stocks must provide investors with stability and growth over time to deliver results. This is exactly what TD does and investors will benefit.
TD has paid a dividend every year since 1857 and has increased its dividend for the vast majority of that time. It must be music to the ears of investors looking for solid blue chip stocks for the long haul.
As of this writing, TD is trading at $ 89.21 and reporting 3.54%. This is a decent value proposition, especially since TD has ample room to grow its dividend in the short term.
Investors looking for high quality dividend paying stocks should definitely keep an eye out for TD.
Fortis (TSX: FTS) (NYSE: FTS) is also one of the leading dividend stocks on the TSX for long-term investments. This utilities giant has long been a prime example of a stable dividend-paying stock.
FTS is such a reliable stock mainly because of the way its income is generated. It provides public services through mostly regulated contracts and as such has almost fixed demand and very predictable revenues.
All of this translates into a very stable stock with one of the safest dividends on the TSX. The stock is also very resistant to market movements, as evidenced by its beta of 0.07.
As such, investors with a slightly more defensive approach might prefer FTS to other dividend paying stocks. It offers protection against market forces while providing investors with an excellent dividend.
As of this writing, FTS is trading at $ 54.84 and reporting 3.9%. That’s a pretty solid offering considering it’s one of the best dividend-paying defensive stocks.
Dividend equity strategy
Both TD and FTS are potentially great options for investing long-term dividends. They each offer unique benefits that are ideal for different types of investors.