3 Dividend Stocks to Buy, Hold & Forget About

Sit back and reap healthy dividends from BCE Inc. (TSX:BCE)(NYSE:BCE), Crescent Point Energy Corp. (TSX:CPG)(NYSE:CPG), and Toronto-Dominion Bank (TSX:TD)(NYSE:TD).

| More on:

If you don’t want to worry about continually monitoring your portfolio, consider these three stocks. Buy them, hold for a long time, and reap returns without having to think about them every day.

1. BCE Inc.

BCE Inc. (TSX: BCE) (NYSE: BCE) had a solid Q2 2014, with net earnings of $606 million. This represents an increase of 6.1% versus Q2 2013. BCE is a solid blue-chip dividend stock for conservative investors because it is Canada’s largest communications enterprise. Its market capitalization is approximately $37.50 billion.

As for its revenue sources, 46% comes from Bell Wireline, 29% from Bell Wireless, 13% from Bell Media, and 12% from Bell Aliant. Moreover, 33% of its Bell revenue comes from wireless, 32% from data, 15% from media, 13% from local & access, 4% from long distance, and 3% from equipment and other.

BCE has a nice current dividend yield of 5.11%. The company pays dividends quarterly and its dividend rate is $2.47. BCE’s five-year average dividend growth rate is 9.65%. It recently declared a quarterly dividend of $0.6175 per common share, payable on Oct. 15, 2014. BCE is one of the top dividend yield stocks in Canada. BCE has a target dividend payout ratio of 65%-75% of free cash flow.

2. Crescent Point Energy Corp.

One of Canada’s largest light and medium oil producers, Crescent Point Energy Corp. (TSX: CPG)(NYSE: CPG) has a dividend yield that is close to double the average for North American peers. As The Globe and Mail reported last week, “An oil discovery in Saskatchewan and four purchases set Crescent Point up for a potential dividend increase and production growth that some investors aren’t recognizing, said chief executive officer Scott Saxberg.”

Crescent Point’s drilling inventory consists of approximately 7,650 locations and the company has approximately 12 years of inventory. It focuses its capital in the Uinta Basin resource play and expanded Torquay resource play (North Dakota Basin). Crescent Point closed its acquisition of CanEra Energy Corp. this past May.

Crescent Point Energy has a good current dividend yield of 6.60% and its five-year average dividend yield is 6.00%. It pays dividends monthly and its dividend rate is $2.76. In August, the company confirmed that the dividend paid yesterday (Sept. 15, 2014) regarding August 2014 production, for shareholders of record on Aug. 31, 2014, was to be C$0.23 per share.

3. Toronto-Dominion Bank

Toronto-Dominion Bank (TSX: TD)(NYSE: TD) offers a complete range of financial products and services and in Q3 2014 more than 80% of its adjusted earnings came from retail. The bank is a strong brand in Canada and has a significant U.S. presence as well. Its business comprises Canadian Retail, U.S. Retail, and Wholesale Banking. As of July 31, 2014, Toronto-Dominion had total assets of C$921.7 billion, total deposits of $C573.7 billion, and total loans of $C465.9 billion.

Its Canadian Retail revenue comes from the Canadian personal and commercial banking businesses, Canadian credit cards, TD Auto Finance Canada, and Canadian wealth and insurance businesses. For Canadian Retail, assets under management increased $31 billion, or 16% in Q3. The principal stimulus here was market appreciation and growth in new client assets.

Toronto-Dominion Bank has a current dividend yield of 3.30%. The bank pays dividends quarterly. Its dividend rate is $1.88. Its five-year average dividend growth rate is 8.16%. In late August, Toronto-Dominion declared a dividend of $0.47 for the quarter ending Oct. 31, 2014.

So sit back and enjoy healthy dividends from these three premier Canadian companies in three diverse sectors.

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 Michael Ugulini owns shares of Toronto-Dominion Bank (USA).

More on Dividend Stocks

Dividend Stocks

2 REITs to Buy to Earn Like a Lazy Landlord

Becoming a landlord and managing the property yourself may give you the most direct exposure, but it also comes with…

Read more »

money cash dividends
Dividend Stocks

Beat the TSX Immediately With This Cash-Gushing Dividend Stock

This dividend stock has already beat the TSX today, even from 52-week lows. But it could only be the beginning.

Read more »

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

This 8% Dividend Stock Pays Cash Every Month

Earn monthly cash of $154 with this 8% dividend stock.

Read more »

oil tank at night
Dividend Stocks

Think Oil Is Going Higher? 3 Dividend Stocks to Buy Now

Looking for steady dividend growth? These three Canadian oil stocks could provide substantial dividend income in the coming years.

Read more »

Profit dial turned up to maximum
Dividend Stocks

This 7% Dividend Stock on the TSX is Worth Watching

With this superb TSX stock now trading at the bottom of its 52-week range, it's certainly a dividend stock you'll…

Read more »

Dots over the earth connecting the world
Dividend Stocks

1 Magnificent Dividend Stock Down 23% to Buy Right Now Near a Once-in-a-Decade Valuation

Patient investors could be happy with this dividend stock a few years down the road.

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 TSX Dividend Stocks to Buy While They Still Offer Great Yields

These top dividend-growth stocks now offer 7% dividend yields.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Best Stocks to Buy in May 2024: TSX Real Estate Sector

Besides yielding stable monthly passive income, these top TSX real estate stocks could help you earn high returns on your…

Read more »