Discovering sturdy Canadian shares can really feel like a balancing act as of late. Between market volatility, rate of interest swings, and financial uncertainty, it’s not all the time simple to know the place to place your cash. However in case you’re investing for the long run and wish regular earnings together with a bit of peace of thoughts, a few shares on the TSX are value severe consideration proper now. I’m speaking about BCE (TSX:BCE) and Hydro One (TSX:H). Each supply secure dividends and reliable efficiency, precisely what you’d need to construct wealth over time.
BCE
Let’s begin with BCE. This telecom big has been by quite a bit recently. This month, BCE made headlines for slashing its dividend by 56%, its first lower in 17 years. Naturally, that spooked buyers. The transfer got here as the corporate struggled with increased prices, legacy landline declines, and a difficult media panorama. However in case you look previous the headlines, there’s nonetheless quite a bit to love about BCE as a long-term maintain.
For the primary quarter of 2025, BCE reported web earnings of $683 million, a pointy enchancment from the $517 million it posted a yr earlier. Nevertheless, adjusted earnings dipped barely to $633 million or $0.69 per share, in comparison with $654 million or $0.72 a yr in the past. Income was additionally down, touchdown at $5.9 billion versus $6.01 billion in Q1 2024. Nonetheless, BCE managed to generate $713 million in free money movement, a wholesome increase that provides it respiration room to speculate and keep its revised dividend. That dividend, by the best way, sits at $1.75 yearly. On the present share value of round $31.50, that’s nonetheless a yield north of 5.5%, which is nothing to sneeze at.
The actual purpose BCE remains to be a purchase is as a result of it performs a vital position in on a regular basis Canadian life. It supplies web, cellular, and media companies to tens of millions throughout the nation. At the same time as folks lower cords or store round for cheaper plans, BCE stays a key participant. The TSX inventory additionally invests in fibre and 5G, which can take time to repay however might ship long-term development. For buyers who can abdomen a little bit of short-term noise, BCE presents a strong alternative to purchase a blue-chip title on sale.
Hydro One
Now, let’s have a look at Hydro One. That is Ontario’s largest electrical energy transmission and distribution utility, and whereas it won’t be flashy, it’s constructed for reliability. The great thing about Hydro One is that it supplies a service everybody wants, no matter what the financial system is doing. It isn’t on the mercy of shopper spending habits or world provide chains. It’s about as secure because it will get.
For the primary quarter of 2025, Hydro One delivered web earnings of $361 million, up from $296 million the yr earlier than. Fundamental earnings per share (EPS) rose to $0.60 from $0.49, pushed by increased transmission revenues and sensible value management. The TSX inventory additionally raised its dividend once more, asserting a quarterly payout of $1.26 per share yearly. That brings its yield to only below 2.4% based mostly on the present inventory value of round $49.75.
What makes Hydro One notably engaging is its regulatory framework. As a result of it operates below regulated charge buildings, its income and returns are comparatively predictable. This provides buyers a degree of stability that’s uncommon in right now’s market. It additionally helps that Hydro One continues to broaden its capital funding program, upgrading infrastructure and bettering grid reliability, all whereas conserving its stability sheet in verify.
Backside line
Collectively, BCE and Hydro One complement one another properly. One provides you publicity to telecommunications and media, the opposite to utilities. Each serve important wants. Each supply dividends you may depend on. And each are buying and selling under their long-term highs, providing you with an opportunity to scoop them up at a extra cheap value. In a world the place markets bounce round on the trace of a headline, it’s refreshing to personal TSX shares that quietly get the job executed. BCE and Hydro One will not be probably the most thrilling names on the market, however for constructing long-term wealth, boring may be lovely.
