Business & Investment

TSX Star: Two Bank Giants to Buy

When it comes to long-term investments, many investors prefer good stocks they can trust. These TSX stars tend to deliver steady growth in both stock prices and dividends.

Over time, the potential for total returns on good TSX stocks is fascinating. This is especially true within the TFSA, where investors can enjoy long-term tax-exempt compound interest.

It is important to note that these stocks will not blow the roof when it comes to rising stock prices. Instead, these are stocks that can provide reliable returns over time.

These usually outperform high-risk stocks in a sufficiently long period of time. That’s why choosing the best TSX star to buy is a top priority for Canadian investors.

Today, we’ll look at two of Canada’s largest banks that can offer attractive returns over time.

Scotiabank

Nova Scotiabank (TSX: BNS)(NYSE: BNS) Is a huge Canadian banking stock and has a significant international presence. At the time of this writing, it has a market capitalization of $ 94.66 billion.

For TSX stars, it’s hard to ignore BNS.The star of this bank paid dividend Every year since 1832, we have increased dividends for most of that period.

We also have the means to consistently bring investors a modest rise in stock prices and continue to do so. International expansion, coupled with a stable presence in Canada, is an important driver of Scotiabank’s future growth.

Investors may be attracted to BNS over the long term. This is because at the time of this writing, the TSX star was trading at $ 78.16 with a yield of 4.61%.

Over time, the dividend can help bring huge profits to investors. This is done through straight passive income or by reinvesting those dividends in the purchase of more shares.

The BNS concludes that it has a virtually good track record of rising dividends and stock prices and is on track to maintain it. Investors looking at a long period of investment can benefit from it.

BMO

Bank of Montreal (TSX: BMO)(NYSE: BMO) Another huge Canadian bank stock. Beyond Canada, its focus is primarily on building the US sector.

When it comes to TSX stars Stable dividend, Cannot pass through BMO. The stock has been paying dividends annually since 1829, and dividends have increased for most of that time.

In addition, its expansion method and stable moat of revenue sources give the stock the stability and growth prospects investors are looking for. Over time, this TSX star has great total return potential for patient investors.

At the time of this writing, BMO was trading at $ 113.66 with a yield of 3.73%. This isn’t a spectacular yield, but BMO’s recent yield numbers are about the same as the course.

This means that for this TSX star, investors are getting a relatively fair price for dividends. Investors looking for a reliable banking giant shouldn’t overlook BMOs.

TSX star selection

Both BMO and BNS are well worth considering as credible and prestigious stocks in the portfolio. Be sure to look at these names if you want to add a strong backbone to your investment.

These are just two great stocks to check out, but this is a free list of the top 10 stocks to buy today!

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This article represents the opinion of a writer who may disagree with the “official” recommendation position of the Motley Fool Premium Services or Advisors. We are Motley! Asking investment treatises, even our own, can help you think critically about your investment and make decisions to be smarter, happier, and richer. As a result, we may publish articles that may not match recommendations, rankings, or other content.

Stupid contributor Jared Segin There are no positions in any of the listed stocks. Motley Fool recommends BANK OF NOVASCOTIA.

TSX Star: Two Bank Giants to Buy

https://www.fool.ca/2021/04/07/tsx-stars-2-banking-giants-to-buy/ TSX Star: Two Bank Giants to Buy

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