Dividend stocks don’t have the allure these days that they had just a few months ago. Many companies are cutting or suspending their payouts in an effort to survive the COVID-19 pandemic. Dividend stocks just aren’t as safe as they’ve been in the past.
However, there are still some quality dividend stocks out there that can provide investors with reliable, stable payouts. One of the stocks near the top of the list has to be Telus Corporation (TSX:T)(NYSE:TU).
The telecom giant doesn’t normally see a lot of volatility in its share price. And while that might result in limited returns for investors, it can be ideal for those who investors who just want to collect a great payout.
And with a dividend yield of more than 5%, Telus can deliver a strong source of recurring income. Telus also normally increases its payouts over the years, meaning that investors don’t have to worry about the impact of inflation.
The company noted in its most recent earnings results that it isn’t able to forecast the impact that COVID-19 will have on its business, forcing Telus to withdraw its guidance for 2020.
However, given that the company’s in telecom, its services are still going to be in demand, it’s just a matter of what their growth will look like. In the first quarter of 2020, Telus saw revenue growth of 5.4% and its EBITDA was also up by 4.2%.
But even if the company’s sales dip due to the pandemic, it likely won’t be enough to make the stock a bad buy or put its dividend at risk.
