Breaking News
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

3 Canadian Dividend Stocks to Buy and Hold Forever

Stock MarketsJul 25, 2021 13:45
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
3 Canadian Dividend Stocks to Buy and Hold Forever

Are you looking for Canadian dividend stocks to buy and hold forever? Here are three quality Canadian Dividend Aristocrats you can invest passively in through retirement for growing income.

A Canadian dividend stock you can trust Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is a top-notch Canadian dividend stock to buy and hold forever. It has paid an increasing cash distribution since its inception after it was spun off from Brookfield Asset Management.

This year marks the 13th consecutive year of dividend growth for the global utility. That length of time covers the ebbs and flows of a business cycle, which suggests solid business performance through good and bad economic times. Otherwise, it couldn’t have maintained the dividend growth.

As a standalone stock, BIP has outperformed peers and the market on the TSX and NYSE since inception. On the TSX, with dividends reinvested, the dividend stock has generated annualized returns of 24% since inception.

This goes to show that the company’s global portfolio across different critical infrastructure assets is a winning combination that produces sustainable cash flow. Additionally, its portfolio requires low maintenance capital investments that average less than 20% of its funds from operations (FFO) while maintaining high EBITDA margins of over 50%.

The stock provides a decent yield of 3.7% currently and intends to increase the cash distribution by 5-9% annually. Consider holding BIP stock in your Tax-Free Savings Account (TFSA) for growing income tax-free.

A Canadian REIT for passive income You become a real passive landlord by buying and holding forever units of quality real estate investment trusts (REITs) like Canadian Net REIT (TSXV:NET.UN).

As a relatively small REIT with only about 84 properties, the Canadian REIT has greater growth potential from acquisition opportunities.

Canadian Net REIT is a Canadian Dividend Aristocrat. This year marks its ninth consecutive year of dividend growth. Actually, it gained more traction with higher dividend growth in the last few years.

Investors can rest assured that its payout is rock solid as it has increased its cash distribution at a slower pace than its FFO growth in the long run, while maintaining a low payout ratio.

The triple-net/management-free lease REIT is an excellent value today as the stock dipped recently from raising gross proceeds of $17.5 million at $7.45 per unit. Expect management to allocate that capital well to grow the business.

Start with a 4% yield today and the dividend stock will likely raise cash distributions by at least 10% over the next few years. Also, consider holding NET.UN stock in your TFSA for passive tax-free income.

A proven dividend stock for growth Alimentation Couche-Tard (TSX:ATD.A)(TSX:ATD.B) is the global convenience store and roadside fuel retailing leader. It began testing charging stations in Norway early on to prepare for the shift to electric vehicles.

The growth stock has performed acquisitions and integrations in the fragmented industry for decades. Management still sees M&A growth opportunities complemented by various organic growth initiatives.

ATD.B is a Canadian Dividend Aristocrat with a three-year dividend growth rate of 18%. At $48.58 per share at writing, the stock is still a great value trading at a trailing-12-month price-to-earnings ratio of about 15.7.

As it’s a growth-oriented dividend stock, investors can choose to hold it in any type of investment account — TFSA, RRSP, or taxable account.

The post 3 Canadian Dividend Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada.

The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Brookfield Asset Management. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Asset Management Inc. CL.A LV, Brookfield Infrastructure Partners, and Canadian Net Real Estate Investment Trust. Fool contributor Kay Ng owns shares of ALIMENTATION COUCHE-TARD INC., Brookfield Asset Management, Brookfield Infrastructure Partners, and Canadian Net Real Estate Investment Trust.

This Article Was First Published on The Motley Fool

3 Canadian Dividend Stocks to Buy and Hold Forever
 

Related Articles

2 Stocks to Buy Now and Hold for Decades
2 Stocks to Buy Now and Hold for Decades By The Motley Fool - Sep 27, 2021

The world is changing, and it’s changing quite rapidly. And the change is permeating every facet of our lives, including investing. Take e-commerce and crypto as an example....

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email