Business & Investment

Income Investment: Two TSX Beasts to Buy

Dividend stability is a top priority for investors focused on income investment. Large yields are attractive, but they are not useful to investors if they want to cut.

In short, it is difficult to build a reliable revenue stream with uncertain dividend sources. As a result, many income investors are looking to certain good TSX stocks with surprisingly stable dividends.

Although they may not offer the highest yields on paper, these stocks usually offer excellent dividend growth and unmatched reliability over time. These are usually good stocks in the non-circulating sector with a variety of sources of income.

Today we will look at two such TSX giants that are ideal for income investment.

Fortis

Fortis (TSX: FTS)(NYSE: FTS) Is a large and diverse holding company based in Canada. We offer a variety of services to our customers in North America, as well as in the Caribbean and Central America.

Fortis has long been a favorite of Canadian investors focused on dividend investment. We have a good track record in stability and are constantly working to increase dividends over time.

This is possible for the following reasons Fortis We are doing business. It provides its utility services primarily through tightly regulated contracts. This means that the source of revenue is very reliable and predictable.

The result is a solid dividend ideal for income investment. Fortis offers these important services in a very stable way, allowing investors to take advantage of their dividends.

At the time of this writing, FTS is trading at $ 50.18 with a yield of 4.03%. It’s not the most spectacular yield, but its credibility is a big plus for income investment.

It won’t give investors a juicy annual return in one year, but it’s a surefire and safe choice for dividend investors.

Scotiabank

Nova Scotiabank (TSX: BNS)(NYSE: BNS) Is a huge Canadian banking stock with an increasing presence on an international scale. It continues to focus on finding ways to drive growth with exposure to new markets and sectors.

For income investment purposes, BNS is an attractive bank choice. That’s because it usually offers higher yields compared to peers who have a strong foundational finance to support it.

At the time of this writing, it was trading at $ 77.42 with a yield of 4.65%. It’s no secret that many stocks are facing difficult battles these days, but the BNS shows no signs of cracking.

In fact, the payout ratio is still only 67.67%. That number is higher than what the BNS would normally carry, but it’s not yet near the danger zone, as long as it jeopardizes dividends.

BNS also has ample fluidity and strong support cushions available. BNS is a solid choice for investors looking to add a major bank to their revenue investment plan.

Like FTS, it usually doesn’t surprise investors in the short term, but over time it gives a solid growth outlook and reliable yields.

Revenue investment strategy

Both FTS and BNS Income investor.. Both offer solid dividends backed by a reliable source of income.

Remember these names if you are trying to add income to invest in firepower.

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Stupid contributor Jared Segin There are no positions in any of the listed stocks. Motley Fool recommends BANK OF NOVA SCOTIA and FORTIS INC.

Income Investment: Two TSX Beasts to Buy

https://www.fool.ca/2021/03/05/income-investing-2-tsx-behemoths-to-buy/ Income Investment: Two TSX Beasts to Buy

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