2 TSX dividend stocks to buy for your retirement portfolio - BCE and RY

Be the First to Comment Read

2 TSX dividend stocks to buy for your retirement portfolio - BCE and RY

More on:
2 TSX dividend stocks to buy for your retirement portfolio - BCE and RY
Image source: © 2022 Kalkine Media®

Highlights

  • Canadians planning to engage in retirement investments can consider dividend stocks like BCE (TSX: BCE) and Royal Bank of Canada (TSX: RY).
  • These TSX stocks are less cyclical, meaning they are more likely to resist market fluctuations than stocks prone to market cycles.
  • These stocks can outperform the broader market during market downturns. 

Young people are often mindful about building a financially secure retirement life. One can achieve that goal by investing in quality dividend stocks like BCE Inc (TSX: BCE) and Royal Bank of Canada (TSX: RY). 

These TSX stocks are less cyclical, meaning they are more likely to resist market fluctuations than stocks prone to market cycles. Though these stocks can generally not offer high returns like growth stocks when the market is on a bull run, they can outperform the broader market during market downturns. 

Let’s see how BCE and RY stocks have been doing.

BCE Inc (TSX: BCE)

BCE Inc is one of the largest telecom operator in Canada, with a market capitalization of over C$ 62 billion. BCE's newly launched internet service of three gigabits per second provides three times faster speed than existing cable technology. The large-cap company is also expanding its fibre internet footprint to additional 87,000 homes in Ontario.

BCE annually returns over five per cent of its stock price to shareholders in the form of dividends (dividend yield). The telecom giant is set to dole out a quarterly dividend of C$ 0.92 per share on July 15.

BCE stock zoomed by almost 15 per cent in the 52 weeks. BCE's return on equity (ROE), which measure profitability by comparing net earnings to shareholders' equity, was over 16 per cent.

Also read: AQN, FRU, RNW, PEY, PZA: Under-$20 TSX dividend stocks to buy in June

 BCE and RY: 2 TSX dividend stocks to buy for retirement

Royal Bank of Canada (TSX: RY)

Royal Bank of Canada holds a notable ROE of over 18 per cent. The C$ 185-billion market cap bank also has a five-year dividend growth rate of roughly seven per cent.

Recently, the financial company introduced a 'revolutionary' authentication tool in the RCB Mobile App to promote clients' interest by simplifying login procedures and protecting their personalized information available online.

Royal Bank is scheduled for a quarterly dividend of C$ 1.28 apiece on August 24. The lender notes a dividend yield of nearly four per cent. As for RY's stock performance, it delivered a return of over five per cent in 12 months. 

Also read: RY, TD & CM stocks fly after Q2 results: Which TSX bank stock to buy?

Bottomline

BCE and Royal Bank of Canada are among the top TSX stocks investors can consider for the long term. These TSX stocks can also diversify your portfolio as they are from two different sectors — telecommunications and finance. Also, these Canadian companies can maintain stable dividend payout and dividend growth during economic setbacks like COVID-19, which is an important point to note while building your retirement portfolio.

Please note, the above content constitutes a very preliminary observation based on the industry, and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks. 

Disclaimer

Speak your Mind

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK