As investors look to balance income with stability in 2026, one Canadian dividend stock stands out as a compelling buy on the TSX this month. With markets showing rotation into reliable cash-flow companies and defensive sectors amid broader volatility, this stock combines yield, earnings resilience, and long-term dividend reliability — traits that income-oriented investors often prize.
TELUS Corporation (TSX: T) emerges as a top choice. The Ontario-based telecommunications giant operates one of Canada’s largest wireless and fiber broadband networks, delivering essential communications services to millions of customers. Its business benefits from recurring revenue streams — subscriptions, data plans, and enterprise services — which tend to be steady even when economic growth slows. A stable customer base and ongoing demand for connectivity underpin predictable cash flows, a key reason why many income investors gravitate toward telecom names.
TELUS also offers an attractive dividend yield relative to the broader market, making it appealing for long-term holders aiming for predictable income. While telecom stocks don’t usually post explosive capital gains, their defensive nature and regular distributions make them good anchors in a dividend-focused portfolio. For investors using tax-advantaged accounts such as TFSAs and RRSPs, locking in reliable monthly or quarterly payouts in a high-quality telecom can enhance tax-free compounding over time.
Also Read: Long term investing in Canada
Another strength of TELUS is its ongoing investment in network expansion and digital services. With 5G rollout and fiber buildout progressing across the country, future revenue drivers include premium service tiers and enterprise integration of cloud and security products. These areas may help TELUS sustain both earnings growth and dividend coverage as competition evolves in the telecom landscape.
Also Read: Dividend paying stocks Canada
No stock is without risks, and investors should be aware that regulatory changes, capital spending cycles, or intensity of competition could affect performance. However, if your priority in February is income stability plus long-term relevance, TELUS’s combination of dividend yield, essential services, and network scale positions it as one of the best TSX dividend buys right now.
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