Beyond Telus: These Dividend Heavyweights Look Like Better Buys Today

Telus (TSX:T) stock has arguably been one of the most discussed high-yield stocks in Canada over the past year, and it’s no mystery as to why. Even with the pause on further dividend hikes (Telus has a track record of consistently raising the bar on its payout), the current yield, hovering around 9.5%, is more than enough to satisfy even the hungriest passive income investors.

Undoubtedly, the ride lower (shares have fallen just north of 25% in the past two years) might be less painful if it means collecting that juicy dividend payout, which, for now, appears to be going nowhere.

At this point, shares have nearly been cut in half. And with so many unanswered questions going into the new year, it remains to be seen whether the stock can at least slow the recent negative momentum that’s caused investors to flee the stock at an alarming pace.

Telus has a high yield, but is it too risky to back up the truck on?

While I have mixed feelings about Telus (I’m not a table-pounding bull, but I’m not a bear, either, especially given the potential value at $17.50 per share), I acknowledge that there are better dividend stocks out there. While their dividend yields might not be nearly as towering as the likes of Telus, I like the dividend-growth profile and, perhaps more importantly, the dividend health going into 2026.

Indeed, higher risk might accompany higher yields. But if you’re not in a position to be taking on more risk in the new year, perhaps sticking with a fairly high, but more secure payout (better coverage from incoming free cash flows) might be the way to score the best of both worlds. So, what looks intriguing in the dividend waters these days?

Look no further than the Canadian banks.

Big dividends from the big banks

If yield is what you value most (more than capital gains), Bank of Nova Scotia (TSX:BNS) has to be a standout candidate within the Big Six basket of stocks. Of course, we’ve seen a lot of yield compression in the past year with the big rallying banks. But with the wind at their back, I’d argue that some pretty generous above-average dividend increases will be in the cards in 2026.

Right now, shares of BNS are still quite bountiful at 4.4%. Yes, it wasn’t too long ago that the yield was above 6%. And while further hikes are highly unlikely to get that payout to prior high watermarks (a big dip in the stock would do it), I wouldn’t be afraid to start a small position here.

With shares up more than 31% year to date, BNS stock is fresh off one of its best years in a long time. It’s been a legendary melt-up, so to speak, and while the risk of a correction increases while shares are over $100, I still think there’s room for further appreciation, especially given industry tailwinds and the still-modest 17.9 times trailing price-to-earnings (P/E) ratio. Though expectations are going to be higher, I like the bank’s chances at delivering solid results in the new year. In my view, it’s a lower-risk dividend play than Telus.

The post Beyond Telus: These Dividend Heavyweights Look Like Better Buys Today appeared first on The Motley Fool Canada.

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More reading

• Is it Time to Buy 1 Canadian Stock That Hasn’t Been This Cheap in Years?
• 10 Years From Now You’ll Be Thrilled You Bought These Outstanding TSX Dividend Stocks
• Is BNS Stock a Buy, Sell, or Hold for 2026?
• To Get More Yield From Your Savings, Consider These 3 Top Stocks
• Telus Stock and Other Yield Boosters: 2 Invesments I’d Buy to Supercharge Income for 2026

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia and TELUS. The Motley Fool has a disclosure policy.