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3 “Forever” Assets That Will Provide a Lifetime of Dividends

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Dividend stocks perform better than the average stock or even growth stocks over long periods. Believe it or not, some companies can provide a lifetime of dividends. You don’t need any trading techniques to achieve your financial goals.

BCE (TSX:BCE)(NYSE:BCE), Canadian Utilities (TSX:CU), and Bank of Montreal are forever assets you can lump together in your portfolio.

Technology aristocrat

You can consider BCE as a technology aristocrat. This $57.47 billion telecom giant connects Canadians with industry-leading advanced broadband communications networks and services.

The Bell brand is a respected Canadian name for well over 139 years. Despite the lengthy corporate existence, it’s still in expansion mode in the 21st century. BCE has a $4 billion annual capital investment, which it will utilize to expand Canada’s broadband fibre and wireless network infrastructure.

BCE spends the most in new network infrastructure and Canadian communications R&D compared with its industry peers. The focus is to bring the best broadband support to the country’s technological leadership on a global scale. With this, BCE has built a competitive edge that is hard to overcome.

Year in and year out, the company generates $20 billion-plus in revenue and nearly $3 billion in average net income. The 4.97% dividend is easily sustainable, with growth potential in the years ahead.

Utility aristocrat

Who would doubt Canadian Utilities’s ability to be an income provider for life? This $10.62 billion diversified utility company has a dividend-growth streak of 47 years. Over the last five years, the dividend-growth rate is 10.15%.

With its 4.4% yield, a $1 million nest egg will return $44,000 in annual income, or a monthly passive income of $3,666.67. Many long-time investors of this preeminent utility company have been living off the dividends.

If you’re a TFSA user, you can instantly boost your after-tax income with Canadian Utilities. You assure yourself with financial sustenance in your later years.

Likewise, the threat of recession in 2020 shouldn’t worry you. The utility sector is not as vulnerable as the others. The majority of its income comes from regulated rates, which make the stock recession resistant. Prices will not fluctuate regardless of market conditions. Hence, significant cash will stream unobstructed.

Financial aristocrat

Don’t look elsewhere for the yardstick, because Bank of Montreal is the ultimate dividend payer. The bank has been gracious to shareholders dating back to 1829. I suppose no company can ever beat BMO’s fantastic record of dividend payments.

The bank is a Dividend Aristocrat, and if you break down this select group of dividend stocks by sector, about 28.1% belong in the financial services sector. Also, the Big Five banks in Canada, including BMO, have been paying dividends for more than 100 years.

BMO pays a 4% dividend, which is more or less the industry average. With its yield, a $300,000 retirement savings will produce $1,000 in monthly passive income for eternity.

Cash generators

BCE, Canadian Utilities, and BMO come up with the significant cash flows every year. You can bask under the pleasant warmth of the sun with a lifetime of dividends.

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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.

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