Forget Telus: A High-Yield Stock to Buy Instead

Telus (TSX:T) stock has been the talk of the town among dividend investors and for good reason: the yield is still sitting above the 9% level. Undoubtedly, the dividend yield is above and beyond what many long-term investors have come to expect. And while shares have started the new year on the right footing, with shares now up close to 3% year to date, I think it’s wise not to chase near-term action and to instead consider the long-term game plan, as the firm looks to make moves and (hopefully) keep its dividend in good standing.

Whether Telus’s dividend can survive another two years remains the big question on the minds of passive-income investors. Either way, one thing is for certain: the dividend isn’t going to grow in the near term, as the telecom titan shares look to get off the canvas. If things get on track sooner than expected, though, perhaps the payout will be back to growth. Time will tell.

Telus stock’s yield and newfound momentum are enticing, but it’s not the only attractive high-yielder

Arguably, Telus has already set itself up for relief last year, as I’ve noted in previous pieces. Whether we’re talking about cuts, setting milestones, or repositioning, Telus is a firm that might not have to follow the playbook of its top rival, BCE, which reduced its payout last year by more than 50%. To income investors, such a cut would be a slap in the face.

Despite the strong start to 2026, I’d much rather be in a growthier high-yield stock. Though there probably aren’t going to be nearly as many stocks with yields hovering around the 9-10% range that aren’t traps.

So, while I like Telus for those keen on a 9.2% yield, I think that many younger investors, especially those who don’t rely on investment income, might wish to pursue dividend plays elsewhere. The telecom industry is in a challenging spot, and I’m really not sure if 2026 is the year that the hardest-hit firms get any relief.

In any case, here’s a name that looks like a growthier, less choppy dividend bet for the new year, at least in my view.

Enbridge

Enbridge (TSX:ENB) stock has a nice 6.2% dividend yield that’s well-covered and positioned to keep growing. With shares recently slumping close to 10%, investors may finally have a chance to punch their ticket into the name before its new growth projects beef up its free cash flows. Enbridge is already flush with cash, and dividend investors should expect more of the same in 2026 when it comes to the dividend (another raise!).

The midstream energy titans, especially Enbridge, are unique, higher-yielding options that also show ample growth promise. While capital gains have been harder to come by over the past year, I view 2025 as a breather that could pave the way for a leg higher, especially as the predictable cash cow looks to keep its dividend-hike streak alive.

Either way, there’s a lot of dividend growth momentum behind Enbridge, and for investors looking to rotate back to fundamentally sound firms that go for cheap, I wouldn’t count out the stock as it looks to experience what could be an even bigger year than 2025.

Though the dividend yield is exactly 3% less than Telus’s, I like the added predictability and continued growth from the name. If Enbridge’s payout survived the worst of 2023, I think it can survive the next slump in the pipeline industry. For now, though, I think the large-cap dividend giant is worth stashing away for years.

The post Forget Telus: A High-Yield Stock to Buy Instead appeared first on The Motley Fool Canada.

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More reading

• 2 High-Yield Dividend Stocks for Stress-Free Passive Income
• DIY Investors: How to Build a Stable Income Portfolio Starting With $50,000
• New Year, New Income: How to Aim for $300 a Month in Tax-Free Dividends
• 2 TSX Stocks That Could Turn $20K Into Decades of Reliable Income
• The Smartest Dividend Stocks to Buy With $500 Right Now

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