A Dividend Giant I’d Buy Alongside Telus Stock Right Now

Shares of telecom titan Telus (TSX:T) have been gaining some ground so far in 2026, but the dividend yield remains at a lofty 9%, making the name a compelling pick for income investors looking to start the new year with a nice yield boost. Undoubtedly, there’s more to buying a dividend stock than just the size of the yield.

With further dividend growth frozen until the company can hit some of its milestones (it’s on track), some investors might also be on pause when it comes to buying shares for their TFSA or RRSP.

Bottom-fishing for Telus won’t be easy amid increased volatility

While the 9% yield is still the star of the show, I think investors should be willing to consider the risks associated with bottom-fishing for a stock that might find itself continuing to swim against the tides in the new year.

Of course, catching a falling knife isn’t just hard to do; it can be tremendously painful, especially for new investors who aren’t willing to wait at least a few years. With Telus reportedly offering buyouts to around 700 workers, at least according to a union, it feels like the health of Telus’ massive dividend is stronger than critics would be led to believe.

In numerous pieces, I’ve touted Telus’ payout as safe, but the stock as a risky play, especially for income investors living on a fixed income. While the latest ricochet off multi-year lows is encouraging, it’s tough to tell if a revisitation to those lows will be up ahead, especially since the longer-term momentum remains quite bearish.

Either way, just because the dividend will stick around doesn’t mean Telus stock will be a winning name to stash away for the long haul, especially if new lows are on the horizon amid industry headwinds. That’s why diversifying into other dividend plays might be the way to go.

CIBC stock looks like a dividend juggernaut

So, what’s the dividend giant that might be worth preferring over the likes of Telus and its hard-hit peers? At this juncture, I’m a huge fan of the big banks for their dividends and momentum.

Indeed, why settle for just dividends when you could have a nice yield, dividend growth, and capital gains potential? Any one of the Big Six names looks like a tempting bet right here. But if I had to choose one that’s most interesting, it’d have to be CIBC (TSX:CM).

Of course, CIBC doesn’t yield more than 5% anymore (the yield sits at 3.4% today), and that’s thanks to a nearly 160% surge off its lows of fall 2023. Still, I think there’s a lot of value to be had in the name, especially as it flexes its muscles in capital markets. Combined with industry tailwinds and a good amount of expansion potential south of the border, and I’m inclined to view shares of CM as a premier dividend grower that’s worth buying on the way up.

Despite gaining more than 40% in the past year, I still view shares as quite cheap, especially relative to its Canadian banking rivals. At the time of writing, the stock goes for just 13.3 times forward price-to-earnings (P/E), which isn’t a bad deal, provided you’re comfortable with its hefty Canadian mortgage book.

Either way, CIBC has a lot going for it in 2026, and it might be a more enticing bet than Telus. Of course, there really is no substitute for Telus’s sky-high 9% yield! Either way, I’d look to buy CM and T together for a powerful one-two income punch!

The post A Dividend Giant I’d Buy Alongside Telus Stock Right Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Imperial Bank of Commerce right now?

Before you buy stock in Canadian Imperial Bank of Commerce, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 5 best stocks for investors to buy now… and Canadian Imperial Bank of Commerce wasn’t one of them. The 5 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,568.17!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 99%* – a market-crushing outperformance compared to 77%* for the S&P/TSX Composite Index. Don’t miss out on our top 5 list, available when you join Stock Advisor Canada.

See the 5 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of January 5th, 2026

More reading

• Beyond Telus: 2 Canadian Dividend Plays for Smart Investors
• A Canadian Dividend Stock Down 9% to Buy Forever
• Maximum TFSA Impact: 3 TSX Stocks to Help Multiply Your Wealth
• Here Are My Top TSX Stocks to Buy for 2026
• This 9% Dividend Stock Is My Top Pick for Immediate Income

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