3 Forever Stocks Yielding 4%

These companies all operate critical infrastructure and make reliable earnings. So you can buy the shares and forget about them.

The Motley Fool

When someone knows very little about investing, you’ll often hear them say they don’t pay attention to their savings. They simply set some of their income aside, and forget about it. After all, why pay attention to your holdings if you don’t know how to react?

Ironically, that attitude is exactly the right one. Meanwhile, more experienced investors are inclined to trade too often, which has shown time and time again to hamper returns.

So with that in mind, below we take a look at three companies that you can count on for a long time. In other words, if you buy the shares, you can forget about them. As a bonus, they all pay a very nice dividend.

1. Rogers Communications

If you read any newspapers, the world of telecommunications may seem very topsy-turvy. Just in the past year, there have been plenty of stories about increased regulation, cord cutting, failed mergers, successful mergers, the threat of increasing competition, and big price tags for spectrum licenses. But through it all, Canada’s big three providers just keep chugging along.

As it stands, the cheapest of the big three is Rogers Communications (TSX: RCI.B)(NYSE: RCI), at just under 14 times earnings. And thanks to its cheap price, the shares yield over 4%.

2. Fortis

Speaking of strong companies in stable industries, Fortis (TSX: FTS) may be the safest stock you could possibly buy. The company is Canada’s largest investor-owned distribution utility, meaning its services will have plenty of demand as long as we want to keep the lights on. And this shows up in Fortis’s numbers; the company has raised its dividend every year for over four decades, a remarkable achievement for any company.

Fortis shares have lagged over the past year, mainly because rising interest rates have made its dividend less attractive. So now the stock arguably trade at a nice discount, and as a result the dividend yield is a healthy 4.0%.

3. TransCanada

Like the first two companies, pipeline operator TransCanada (TSX: TRP)(NYSE: TRP) operates critical infrastructure, and as a result is able to churn out very consistent earnings. Yet concerns about the fate of its Keystone XL project are likely holding the shares back, and as a result the shares yield close to 4%. By comparison, TransCanada’s biggest rival, Enbridge, yields well under 3%.

But Keystone is only a small part of TransCanada’s portfolio of commercially secured projects, so the company will continue doing what it does best, no matter what President Obama decides. Meanwhile, TransCanada’s shareholders won’t even have to pay attention.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Benjamin Sinclair holds no positions in any of the stocks mentioned in this article.

More on Investing

Solar panels and windmills
Energy Stocks

How Brookfield Renewable Stock Gained 40% in a Month

Brookfield Renewable stock (TSX:BEP.UN) surged in share price from a landmark deal and strong earnings, leading to a 40% jump.

Read more »

money cash dividends
Dividend Stocks

2 Under-$10 Dividend Stocks I’d Buy Right Now

Here's why low-cost dividend stocks such as Decisive Dividend should be part of your shopping list in 2024.

Read more »

Canadian Dollars
Dividend Stocks

5 Stocks You Can Confidently Invest $500 in Right Now

These five stocks are all some of the top businesses in Canada, making them stocks you can buy confidently in…

Read more »

A worker drinks out of a mug in an office.
Dividend Stocks

Worry-Free Dividends: 3 Stocks for Canadian Investors

These three Canadian stocks can help you earn worry-free dividends irrespective of market conditions.

Read more »

movies, theatre, popcorn

Cineplex Stock Looks Like a Steal at $8 and Change

Cineplex (TSX:CGX) stock is starting to look like a great deal as it looks to add to its recent swing…

Read more »

Woman has an idea
Dividend Stocks

The Smartest TSX Dividend Stocks to Buy With $1,000 Right Now

Here's why blue-chip TSX dividend stocks such as BAM and BMO should be a part of your shopping list in…

Read more »


The Top 5 Movers on the TSX in May

If you're looking for the best of the best, these five have been the top performers in May of this…

Read more »

stock data
Dividend Stocks

TFSA Pension: 1 Great Canadian Dividend Stock to Own for Growing Passive Income

This TSX dividend stock is down 35% from the 2022 high. Is it finally oversold?

Read more »