The S&P/TSX Composite Index bounced back nicely on August 29, rising 112 points to close out the day. Canadian markets have reflected the volatile global picture in the last full month of the summer. There is considerable anxiety amid intense U.S.-China trade negotiations and the Brexit deadline on October 31.
Telecoms offer solid income and attractive stability that can protect your portfolio. A dovish central bank is also a bullish sign for telecoms, which have thrived as income investors look back to equities while bond yields collapse. These companies have taken a hit from cord cutting, but the huge growth of wireless is giving them a second wind as we look ahead to the 2020s.
BCE (TSX:BCE)(NYSE:BCE) stock has climbed 19.3% in 2019 as of close on August 29. Shares of BCE have achieved an average annual return of 12% over the past decade. The stock currently offers a quarterly dividend of $0.7925 per share, which represents an attractive 5% yield. The company has achieved dividend growth for 10 consecutive years.
Telus (TSX:T)(NYSE:TU) stock has increased 8.6% in 2019 so far. Shares have posted an average annual return of 14% over the past 10 years. Telus stock currently pays out a quarterly dividend of $0.5625 per share which represents a 4.6% yield. The company has achieved dividend-growth for 15 consecutive years, putting it in elite company on the TSX.
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