Earning $300 a month for 100 years is not an impossible goal or an arduous task. The secret is to invest in stocks with a 100-plus-year history of paying dividends. Two Canadian banks and one Canadian telecom giant are the Dividend Aristocrats you can depend on to achieve the objective.
Apart from the impressive history of dividend payments, Toronto-Dominion (TSX:TD)(NYSE:TD), Bank of Nova Scotia (TSX:BNS)(NYSE: BNS), and BCE (TSX:BCE)(NYSE:BCE) are dividend kings you can buy and hold for eternity.
The Canadian banking system is one of the most well established on the planet. The stability of the industry is the result of the general highly conservative nature and stringent rules instituted by the Bank of Canada.
TD is a banking behemoth not only in Canada, but also across the border. This $133.3 billion bank has been a dividend payer since 1857. The bank boasts of an assertive dividend policy made possible by its intense market penetration and growing presence in the United States.
TD has the distinction of posting steady revenue and earnings growth during the 2008 financial crisis. Its retail segment — consumer and commercial banking – in the home country and the U.S. are equally healthy. The 4% dividend is safe and sustainable for the next 100 years.
Bank of Nova Scotia was the second Canadian company to pay dividends. Since 1832, this $90 billion financial institution has been sharing its income to shareholders in the form of dividends.
Because of its constant expansion dating back to the early 1900s, Scotiabank is now the third-largest bank lender in Canada. Aside from its dominance in Ontario, Scotiabank is making headway in Latin American countries such as Chile, Colombia, Peru, and Mexico.
The current dividend of 4.87% is one of the highest in the banking industry. If you have $10,000 to invest in Scotiabank today, your total return could be 848.1% in 20 years. The computation comes from historical data. You can expect to receive an income stream for the duration of your retirement regardless of length.
BCE, the largest telecom provider in Canada, is closely identified with a famous inventor. The company was established in 1880 immediately following the invention of the telephone by Scottish-born American Alexander Graham Bell. A year later, BCE started its dividend payouts, which continue until today.
This telcom pays a high dividend of 4.95%. Even if BCE is the only stock in your investment portfolio, you can retire wealthy and enjoy a comfortable lifestyle. The company is super stable and exceedingly profitable than it was 100 years ago.
BCE is dominating the industry with its three primary segments, handily beating competition. With the 5G network and the ever-increasing customer base, BCE will be the telecom industry’s premier profit centre.
With TD, Scotiabank, and BCE, you can assemble a money-making portfolio that would deliver $300 a month for the next century. It’s not an exaggeration because you have three Dividend Aristocrats operating in two of the most stable industries in Canada.
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 Christopher Liew has no position in any of the stocks mentioned. Bank of Nova Scotia is a recommendation of Stock Advisor Canada.