TOP CANADIAN DIVIDEND STOCKS TO BUY FOR THE LONG TERM

TOP CANADIAN DIVIDEND STOCKS TO BUY FOR THE LONG TERM

What’s up guys, it’s wiz.

Welcome back to the channel. If you are new, I am a Canadian investor. I cover a whole lot of information about investing in Canada and do research into our Canadian market. I dive into growth investing, dividend investing and Canadian small caps / penny stocks. Today, I will be going over some Canadian dividend stocks that are great for the long term. These Canadian companies have been paying dividends for more than four decades and have been consistently growing the same. Make sure to do your own due diligence before getting into any of the stocks I will mention. For new investors, you need to join Wealthsimple Trade if you are looking to start investing and live in Canada. If you use my link in the description to join Wealthsimple, you get 2 free stocks worth up to 4500$ so do not miss out.

Dividend stocks are attractive investments for regular income. Moreover, as dividend-paying companies have a stable earnings base, they generate steady growth over the long term. While the TSX has several dividend-paying stocks, only a few have consistently paid dividends for more than four decades. Against this background, let’s look at a few high-quality income stocks that have paid dividends for more than 40 years. Further, these companies have a solid earnings base and the potential to continue to enhance shareholders’ returns in the coming years.

Let me start with top bank stocks to rely on. Top Canadian banking stocks are famous for paying and growing their dividends. Within the banking space, Bank of Montreal (ticker symbol BMO) has a rich history of paying dividends. For context, this financial services giant has been paying a dividend for 193 years, which is the highest by any Canadian company. Moreover, it has been consistently growing its dividend, making it a solid investment for income investors. Its diversified revenue base, ability to drive loans and deposits, rising interest rates, and strong credit quality will likely support its future payouts. Moreover, its focus on improving efficiency could continue to cushion its profit margins.

Along with Bank of Montreal, Toronto-Dominion Bank (ticker symbol TD) is another stock with a stellar track record of paying and growing dividends. For instance, Toronto-Dominion Bank has paid a dividend for 164 years. What’s more, this banking giant has grown its dividend at a CAGR of 11% in the last 27 years, which is the highest growth rate among its peers. Its solid revenue base, high-quality asset base, strong credit performance, operating leverage, and robust balance sheet position it well to consistently grow its earnings and dividend payments.

Now let’s get into some energy stocks worth investing in. Like the banks, energy stocks have also been paying and growing dividends for a very long period. Among the top dividend-paying dividend stocks, Enbridge (ticker symbol ENB) stands out for regularly paying and increasing its dividend. It’s worth noting that Enbridge has been paying a dividend for more than six-and-a-half decades. Furthermore, it increased the dividend at a CAGR of 10% since 1995. Its diverse cash flow streams and long-term contractual arrangements underpinned by cost-of-service and take-or-pay framework support its dividend payments. Furthermore, strong energy demand, high asset utilization rate, and inflation-protected revenues are positives. Looking ahead, its strong secured capital program, recovery in mainline volumes, opportunities in the renewables business, and productivity savings will drive its distributable cash flows and dividend payouts.

Besides Enbridge, Fortis (ticker symbol FTS) is a must-have stock for investors to generate steady income for decades. It has been paying and growing dividends for 48 years, which supports my bullish outlook. Further, its low-risk, regulated business and growing rate base indicate that Fortis could continue to increase its future dividend payments. Fortis expects its dividend to grow at a CAGR of 6% through 2025, supported by continued expansion of its rate base. Notably, Fortis expects its rate base to expand by about $10 billion in the next five years. Further, the expansion of renewables capacity and focus on opportunistic acquisitions will likely support Fortis’s growth and augur well for future payouts.

Hope you guys enjoyed these Canadian dividend stocks in the financials and energy sectors. These Canadian companies have a solid track record of dividend payments. Moreover, their resilient and diversified earnings base suggests that one can earn a reliable dividend income for decades by investing in these stocks. Please watch my previous videos on Canadian stock recommendations and let me know of any Canadian stocks you want me to look into and give my opinion on. Let me know in the comments, since I really want to expand my knowledge in the Canadian market, and you also expand your own knowledge by asking questions. If you did enjoy this video, leaving a like really helps grow the channel! Thanks for watching, I’ll see you guys in the next video!


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