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Stock markets are trading near record highs, but several top TSX dividend stocks have not participated in the rally and currently offer attractive yields.
Buying dividend stocks when they are out of favour requires a bit of courage and the patience to ride out additional weakness. However, the strategy can boost yields on savings and potentially generate long-term capital gains on a rebound.
BCE
BCE (TSX:BCE) is down about 30% in the past year. The pullback has been difficult to watch for long-term holders of the stock. BCE is known for its stable and generous dividend that retirees and other income investors have relied on for decades.
Rising interest rates in Canada are to blame for much of the decline over the past two years. BCE uses debt to fund part of its large capital program. The jump in borrowing costs puts pressure on profits and can eat into cash available for distributions.
BCE has also…
