Retirees: 2 Dividend Stocks for Long-Term Holding

2 min read | November 15, 2023 12:00 AM EST | By Team Kalkine Media

Retirees: 2 Dividend Stocks for Long-Term Holding — Image source: shutterstock.com

Telus Corporation (TSX:T)

Telus, a prominent player in the telecom industry, offers investors a generational opportunity with its current valuation. The stock has experienced a bearish descent from its 2022 highs, reflecting challenges in the telecom sector. Despite the industry headwinds, TSX T presents income investors with an attractive dividend yield at an undervalued price.

The stock recently dipped to around $22 before rebounding to approximately $24 per share, contributing to a compelling yield of 6.32%. While the telecom sector may face obstacles until interest rates stabilize, Telus remains a former dividend darling with the potential for long-term value. Retirees with a focus on income and a willingness to weather short-term volatility might find Telus a suitable addition to their portfolios.

BCE Inc. (TSX:BCE)

BCE, another major player in the telecom sector, offers an even higher yield, making it an enticing choice for income-focused investors. With a yield of 7.3%, BCE has witnessed a slight recovery from its lows of around $50 per share. Trading at approximately 21.8 times trailing price-to-earnings, the stock appears reasonably priced.

BCE's commitment to cost control and ongoing efforts to enhance operational efficiency position it for potential gains. The TSX 's current multi-year lows present an opportunity for investors to benefit from a potential rally. While acknowledging the prevailing challenges, a long-term investment horizon and readiness for continued volatility are essential for those considering BCE as part of their income-focused strategy.

In conclusion, Telus and BCE, with their attractive dividend yields and potential for value appreciation, can be viewed as dividend knights suitable for long-term holding. Retirees may find these stocks resilient amid market uncertainties, providing a consistent income stream and potential for capital appreciation over time.

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