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3 Top Dividend Stocks to Buy and Hold for the Next 20 Years

Wait, U.S. interest rates are expected to head down or at least stay put now!?

This is yet another data point that would serve to pressure the Bank of Canada to ease up on interest rate increases. High consumer debt loads were already placing that pressure on the Bank, so this is yet another contributing factor.

So, given this, we can feel even more comfortable with some of the high-quality dividend stocks that we may have been yearning to own.

Consider the following three top dividend stocks.

Northwest Healthcare Properties REIT (TSX:NWH.UN)

With a current dividend yield of 7.47%, Northwest represents a good opportunity here.

The company offers a high-quality global, diversified portfolio of healthcare real estate properties located throughout Canada, Brazil, Germany, Australia, and New Zealand.

Latest results showed strong net operating income growth of 4% on a constant-currency basis and continued strengthening fundamentals and growth prospects.

There are five main reasons that Northwest stock is a buy:

  • Healthcare properties generally have stable occupancies and long-term leases.
  • It offers exposure to the biggest demographic shift that much of the developed world is facing.
  • It has attractive supply/demand fundamentals, with an occupancy rate of 96.3%.
  • It has a dividend yield of 7.47% with a payout ratio of 90%.
  • It has scale in Canada and is attempting to build scale in Europe and select countries.

Chartwell Retirement Residences (TSX:CSH.UN)

As the largest provider and owner of seniors housing communities from independent living to long-term care, Chartwell has been benefiting from rising occupancy levels, as an uptick in demand has been accompanied by a stagnant supply of seniors housing.

With a 4% dividend yield, four consecutive years of cash distribution increases, and a quality portfolio of properties, Chartwell is a solid investment that is well positioned for the future.

In its latest quarter, Chartwell reported a 6% increase in fund from operations, but the real story here is the long-term trend, as a doubling of people over the age of 75 in the next 20 years will provide a big boost to demand

Going forward, the company has a strong pipeline of opportunities to expand its portfolio of seniors’ housing developments as well as a plethora of opportunities to continue to expand its support services that are offered in house.

TC Pipelines (TSX:TRP)(NYSE:TRP)

For more than 65 years, TC has been developing and maintaining energy infrastructure, while handsomely rewarding shareholders. And with a current dividend yield of 5%, it’s hard to find an energy stock with safer income streams.

Since 2000, TC stock has provided shareholders with a 13% average annual return, while delivering yearly dividend increases, which brought the dividend per share from $0.80 to $2.76.

The recent approval of LNG Canada’s proposal to build the LNG plant is another driver for the stock going forward in that it has resulted in the company moving forward on its Coastal GasLink natural gas pipeline, and it will have a positive effect on investor sentiment toward TC stock as well.

TC has above-average, visible growth and an infrastructure presence that should ensure strong growth well into the future.

Investors can expect continued dividend growth of 8-10% through to 2021.

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Fool contributor Karen Thomas owns shares of NORTHWEST HEALTHCARE PPTYS REIT UNITS and TRANSCANADA CORP. Northwest Healthcare Properties is a recommendation of Stock Advisor Canada.

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