3 Dividend Stocks for a 20-Year Portfolio

These dividends should stand the test of time.

The Motley Fool

If you’re looking for dividend stocks, chances are you’re a long-term investor. After all, what good is a healthy dividend yield if you have to worry about it being cut? Unfortunately, in Canada, there are too many companies that come with exactly that risk.

On that note, the three companies below can be reliably counted on not just for years, but for decades.

1. TransCanada

There are very few industries as reliable as pipelines. These companies operate critical infrastructure, sign long-term contracts with their customers, and face ever-increasing demand for their services. It’s no wonder that these companies raise their dividends so consistently.

The best company to buy in this space may be TransCanada (TSX: TRP)(NYSE: TRP), whose stock is being held in check by uncertainty over the Keystone XL pipeline. As a result, the shares yield a healthy 3.7%.

However, Keystone accounts for just a small fraction of TransCanada’s $36 billion of commercially secured projects. If you’re willing to ignore the many headlines, then you can get a reliable dividend from this company for many years to come.

2. Rogers Communications

Like the pipeline companies, Canada’s big three telecommunications providers are also reliable cash-flow generators. Limited competition, high barriers to entry, and subscription-based pricing don’t hurt.

Of the big three, Rogers Communications (TSX: RCI.B)(NYSE: RCI) is currently the cheapest, at 13.5 times earnings. The company has posted some mediocre earnings numbers the past few quarters, and investors are starting to get impatient. Rogers also has a reputation for poor customer service, something that may be weighing on the share price.

As a result, new CEO Guy Laurence is placing a big emphasis on improving customer service, and in the meantime Rogers has some nice assets to work with. For example, the company was the big winner (for a price) at the last spectrum auction, and also won the rights to broadcast NHL hockey games.

So shareholders should be able to count on Rogers for a long time. In the meantime, they can enjoy the company’s 4.4% dividend.

3. Cenovus

It is true that oil production is a lot more cyclical than pipelines and telecommunications. Despite this, Cenovus (TSX: CVE)(NYSE: CVE) is quite possibly Canada’s most robust energy company, simply because it owns the best assets. As a result, it is able to produce oil much more cheaply than its competitors, meaning that the company will remain profitable even when oil prices are depressed.

Like Rogers, Cenovus has had some mediocre earnings numbers the past few quarters, which have held down the share price — consequently, Cenovus yields a healthy 3.1%.

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

food restaurants
Dividend Stocks

Better Stock to Buy Now: Tim Hortons or Starbucks?

Starbucks and Restaurant Brands International are two blue-chip dividend stocks that trade at a discount to consensus price targets.

Read more »

Diggers and trucks in a coal mine
Metals and Mining Stocks

1 Canadian Mining Stock Worth a Long-Term Investment

Cameco (TSX:CCO) stock could be a great long-term investment for Canadian growth seekers.

Read more »

Pot stocks are a riskier investment

Could Investing $10,000 in Aurora Cannabis Stock Make You a Millionaire?

Let's dive into whether Aurora Cannabis (TSX:ACB) could be a potential millionaire-maker stock, or a dud, over the long term.

Read more »

stock analysis
Energy Stocks

Is Enbridge Stock a Good Buy in May 2024?

Boasting high-yielding dividends and a stable underlying business, Enbridge (TSX:ENB) might be a great buy for your self-directed investment portfolio…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

1 Growth Stock With Legit Potential to Outperform the Market

Identifying the stocks that have outperformed the market (in the past) is relatively easy, but selecting the ones that will…

Read more »

healthcare pharma
Tech Stocks

Well Health Stock Is Up 7% After Earnings: What Investors Need to Know

Well Health is benefiting from strong demand as it digitizes healthcare and strives to improve patient outcomes.

Read more »

money cash dividends
Dividend Stocks

Passive Income: The Investment Needed to Yield $1,000 Per Annum

Do you want to generate a juicy passive-income stream? Here's a trio of stocks that can generate a yield of…

Read more »

Dividend Stocks

Here’s the Average TFSA Balance in 2024

The average TFSA balance has steadily risen over the last six years and surpassed $41,510 in 2023. Will the TFSA…

Read more »