2 Stocks With Legit Safe 6%-ish Dividends

Don’t let the strength in the recent market rally fool you (that’s a lower-case f), there’s still plenty of quality, high-yielding dividends out there. And the best part is, you don’t need to go digging into the depths of the TSX Index. Some of the most intriguing dividend plays may actually be hiding in plain sight!

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In this piece, we’ll just look at two blue-chip stocks that have dividend yields in the 6-7% range. Though further pressure on either name could cause the yield to swell further, I’d argue that even added weakness is unlikely to result in dividend reductions.

Of course, any above-average yield needs to be analyzed carefully to ensure the odds of a dividend cut are reduced. When it comes to the following names, though, the dividends are more than safe, with room to grow at a rate close to that of historical averages.

As a recession adds more turbulence to broader markets, the following dividend stocks may be a great way to sail through a storm. Consider shares of telecom heavyweight BCE (TSX:BCE) and Enbridge (TSX:ENB), which boast yields of 6.31% and 7.01%, respectively, at the time of writing.

BCE

When times get rocky, income investors should stay connected with telecom stocks like BCE. Their dividends are too attractive to pass up, regardless of how markets or the economy are projected to do over the near to medium term.

The Canadian telecom scene hasn’t changed that much over the decades. And that’s been a good thing for dividend investors. With wide moats protecting their cash flows, the telecoms have been very worthy bets for Canadian investors of all ages. Stable dividends and consistent growth (in dividends and the stock price) over time are what many have come to expect from the behemoth.

Of late, though, big changes have taken place in the telecom scene. Whether we’re talking about Rogers Communications’s (TSX:RCI.B) acquisition of Shaw Communications, or the push for a fourth major national carrier, the landscape is changing. Fortunately, BCE is equipped to adapt. Though BCE stock reacted quite negatively to the Shaw-Rogers deal, I think a subtle uptick in competitive pressures are nothing BCE’s managers can’t handle.

When times get tough, the well-run telecoms are just a nice place to be.

Enbridge

Enbridge is the $101.1 billion pipeline company that we all know and love. The stock has been on a rollercoaster ride lower over the past year.

As shares have sunk, the yield has swelled above 7% once again. I think the yield won’t stay above this level for very long, especially as investors discover the value to be had in the shareholder-friendly midstream operator.

Mainline system pressures aside, Enbridge is a cash cow that’s likely to line the pockets of investors for years to come. So, stop worrying about when a recession strikes and keep a close watch on wonderful businesses that could sink below their intrinsic value ranges. Enbridge stock, I believe, is one of the better bargains in the large-cap energy space.

The post 2 Stocks With Legit Safe 6%-ish Dividends appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Rogers Communications. The Motley Fool has a disclosure policy.