Dividend stocks are some of the most important investments to own for the long term. You can find some stocks that pay all their earnings or other stocks that pay very little of their earnings. Whatever you choose, it’s important that at least some of your TSX stocks pay a dividend.
Sometimes these stocks can be neglected by investors. They often aren’t the most exciting investments like growth stocks. Nevertheless, it’s still paramount investors have a mix of resilient, dividend-paying stocks to complement their higher-risk growth stocks.
Some of the best stocks for stability are those that pay dividends, especially the Dividend Aristocrat stocks, which consistently increase their dividend payouts each year.
Here are two of the top TSX dividend stocks to buy for income and stability today.
A TSX telecom stock with an attractive dividend yield
There are several industries to look for high-quality and resilient TSX dividend stocks. However, few industries are better than telecom.
The industry is perfect for long-term investors because it’s highly defensive but also offers major long-term growth, especially with the introduction of 5G technology.
There are a few high-quality dividend stocks to choose from in the telecom industry. However, the best stock in the industry for income and stability has got to be BCE Inc (TSX:BCE)(NYSE:BCE).
BCE is the biggest telecom in Canada, and its major size gives it a big competitive advantage. Plus, its wireless, wireline, and media segments are well integrated, offering a tonne of attractive synergies.
It’s one of the very best stocks in Canada when it comes to long-term stability. And because it’s such a cash cow, the stock is consistently returning cash to shareholders. The dividend is impressive, too, currently yielding over 6%. Plus, it will continue to grow each year.
The increased usage of more devices in the future coupled with the introduction of 5G across the board will see major growth for the industry long term.
So if you’re looking for a top TSX dividend stock to buy today, BCE is one of the very best.
A TSX utility stock for income and stability
Another incredibly stable long-term TSX stock for investors to buy today is Fortis Inc (TSX:FTS)(NYSE:FTS). Fortis is a utility stock. Utility stocks are some of the best investments to make if you’re looking for defence and stability.
Not only are the services that utilities sell a staple of the economy, but they are also regulated, making it a very low-risk investment. Furthermore, Fortis specifically has a tonne of diversification about the jurisdictions it operates in.
The TSX dividend stock’s a perfect choice for those looking for a safe investment that will grow significantly and return capital to investors. It’s the perfect core portfolio stock.
Fortis is also one of the oldest Dividend Aristocrats in Canada. It’s increased its dividend for 47 consecutive years, showing what a reliable company it can be for long-term investors.
Today that dividend yields roughly 3.7%. Plus, with Fortis trading roughly 10% off its target price, the TSX dividend stock offers an attractive potential return over the next year.
Bottom line
Dividend stocks, especially ones that grow their payouts each year are a key component to long-term investing. So if you’re looking for some top TSX dividend stocks to buy today, I’d start with these two.
