Canadian Stocks: 3 Dividend Superstars

Looking for top Canadian stocks to invest in? Find out why these three TSX dividend giants are definitely worth a good look.

| More on:

There is a wide range of Canadian stocks trading on the TSX ideal for various investing styles. In particular, there are a lot of very strong dividend stocks in Canada.

These stocks suit a long-term investor who’s focused on value and compounded returns. Over time, these blue-chip stars have the potential to deliver great returns.

However, investors must be careful when choosing dividend stocks. Sometimes, there are yield traps on offer, and the dividends are too good to be true.

So, investors should turn their attention to reliable blue-chip Canadian stocks with reliable dividends. These stocks are the ones that could go the distance for long-term investing.

Today, we’ll look at three such TSX stocks that investors will want to keep an eye on.

TD Bank

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of the major banks in Canada. As such, it is always relevant in the dividend stock discussion.

TD is one of the best Canadian stocks for finding long-term value. The stock has paid a dividend every year since 1857 and has the means to continue to do so easily.

Plus, while its dividend has been forced to be stagnant of late, it certainly has room to grow going forward. This could be a benefit for long-term investors looking to pick up shares of a dividend star now.

TD has a strong presence in both the U.S. and Canada, and this helps it drive growth through a unique blend of revenue sources. Its diverse portfolio of business streams help it offer stability and growth to investors.

As of this writing, TD is trading at $87.61 and yielding 3.61%. Investors looking to choose a bank stock in their Canadian stock portfolio should give TD a good look.

Telus

Telus (TSX:T)(NYSE:TU) is a massive telecom player in Canada, as it offers a wide range of telecom services and products through its subsidiary Telus Communications.

However, this giant Canadian stock has quite a wide range of products, including TV, entertainment, and even digital healthcare through Telus Health.

Now more than ever, it seems digital healthcare could be a big driver for growth going forward. Couple that with strong demand for 5G in Canada, and Telus has a clear path for sustainable growth ahead.

As of this writing, this Canadian stock is trading at $27.41 and yielding 4.61%. That’s a juicy yield that investors can trust going forward.

Telus is known to have a penchant for providing outstanding dividend growth to its investors, and Canadian investors can count on that for long-term returns.

Defensive Canadian stock: Fortis

Fortis (TSX:FTS)(NYSE:FTS) is a top pick for investors looking for a more defensive Canadian stock. The utility provider is a stable giant with a rock-solid dividend on offer.

Fortis is so stable because its revenue streams are completely reliable and predictable. That’s because its utility services are provided mostly through regulated contracts.

As such, investors don’t really have surprises come earnings time, and the dividend is nearly set in stone. As of this writing, this Canadian stock is trading at $56.12 and yielding 3.6%.

Investors looking to add a stock that can offer defensive insulation to their portfolio should give Fortis strong consideration.

Best Canadian stocks for dividends

These three TSX giants are ideal for long-term dividend investing. They each offer something unique that can suit investors with different preferences.

In the end, these blue-chip stars each offer a great value proposition for investors with their eyes on the long run.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Jared Seguin has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC and TELUS CORPORATION.

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Where to Invest Your $7,000 TFSA Contribution

The TFSA is attractive for investors who want to generate tax-free passive income.

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

TFSA Investors: 3 Dividend Stocks Worth Holding Forever

These TSX stocks have the potential to grow their dividends over the next decade, making them top investments for TFSA…

Read more »

Tractor spraying a field of wheat
Dividend Stocks

Is Nutrien Stock a Buy for its Dividend Yield?

Nutrien is down more than 50% form the 2022 highs. Is NTR stock now oversold?

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Best Stock to Buy Right Now: Enbridge vs TC Energy?

Enbridge and TC Energy rebounded nicely over the past year. Are more gains on the way?

Read more »

Electricity transmission towers with orange glowing wires against night sky
Dividend Stocks

2 Utility Stocks That Are Smart Buys for Canadians in November

Are you looking for some of the smart buys to consider in November? These utility stocks offer growth and a…

Read more »

View of high rise corporate buildings in the financial district of Toronto, Canada
Dividend Stocks

Is Power Corporation of Canada Stock a Buy for its 5% Dividend Yield?

Is Power Corporation of Canada (TSX:POW) stock's 5% dividend yield worth it? Discover why this resilient stock could be a…

Read more »

hand stacks coins
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These three dividend stocks are ideal for strengthening your portfolio and earning a stable passive income.

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer REIT Stocks to Buy Right Now for Less Than $200

REITs have long been touted as some of the best dividend stocks out there if you want recurring, strong income.…

Read more »