Dividend investment: 2 top rockstars

0


Dividend investing is one of the many smart strategies available to Canadian investors. This is particularly appealing to investors who reinvest dividends and allow capitalization to do its job over time.

While this type of investing style usually does not offer mind-blowing returns in a single year, it does allow investors to realize huge total gains over time. For long-term investors, investing in blue chip dividends is a very solid approach.

However, not all dividend-paying stocks are created equal. Some are not suitable for this type of long-term investment because they lack the reliability or stability required.

It is therefore important that investors pay attention to the dividend paying stocks they are looking for. Today we are going to look at two TSX ideal gemstones for long term dividend investing.

CIBC

Canadian Imperial Bank of Commerce (TSX: CM) (NYSE: CM) is a leading Canadian mainstay in banking. He has a long experience in the distribution of a solid and growing dividend.

CM is a great option for investors looking for great total returns over time. The stock price might not be growing wildly, but that dividend can work wonders over time if it’s reinvested.

As of this writing, CM is trading at $ 141.47 and reporting 4.13%. This is an attractive proposition for long-term investors, especially because this dividend can increase as the economy really takes off.

CM has a wide range of sources and sources of income that help it provide investors with long-term stability and peace of mind. He is a major player in one of the best areas of the TSX, which inspires a lot of confidence.

Financial data looks good for CM and the stability of its dividends is not a cause for concern. This is a rock solid blue chip stock ideal for long term dividend investing,

Telus

TELUS (TSX: T) (NYSE: TU) is a major player in the telecommunications industry through its subsidiary Telus Communications. It offers a wide range of telecommunications products and services, as well as Internet and entertainment solutions to its customers.

Beyond that, Telus also owns the Telus Healthcare division, a leader in digital healthcare solutions. Exposure to this type of business is probably a good thing at this point and in the future.

Telus has a long track record of delivering substantial dividend growth while also being a relatively stable dividend investing stock. As of this writing, it is trading at $ 27.67 and is earning 4.57%.

That’s quite the return offered to long-term dividend investors. Over time, the potential for total return with a stock like Telus is huge.

As a significant part of the Canadian telecommunications space, T offers investors a consistent dividend with great prospects for share price appreciation going forward. This diversified, blue-chip stock is ideal for dividend investing.

Dividend investment strategy

CM and T are great options for a long term dividend investment plan. They each offer rock solid dividends to Canadian investors with ample room for growth going forward.

If you’re looking to unearth top-notch TSX superstars, these two names should be high on your shopping list.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Foolish contributor Jared Seguin has no position in the stocks mentioned. The Motley Fool recommends TELUS CORPORATION.


Leave A Reply

Your email address will not be published.