Buy and Hold These 3 Dividend Stocks for a Lifetime of Income!

Fortis Inc (TSX:FTS)(NYSE:FTS) stock could produce a lifetime of income.

| More on:
Businessperson's Hand Putting Coin In Piggybank

Image source: Getty Images

Thanks to the recent (arguably ongoing) stock market crash, TSX stocks have gotten cheaper than they’ve been in recent memory. While some have been justifiably beaten down for their exposure to COVID-19 and weak oil, not all of them are in that boat.

In March, stocks fell across the board — including stocks that will not be severely affected by the ongoing crises. Many of them are up from last month’s lows but still cheap relative to intrinsic value. This includes many of the nation’s most reliable dividend stocks. If you’re interested in snapping up some of those bargains, here are three dividend stocks to consider in April.


Fortis (TSX:FTS)(NYSE:FTS) is easily one of Canada’s most reliable dividend stocks. With 46 consecutive years of dividend increases, its track record speaks for itself. At present, you can snap up FTS shares and lock in a juicy 3.5% yield. Further, the company is planning to increase its dividend by 6% a year for the next five years. That could result in some serious income in the future.

And, of course, Fortis is perfectly positioned to make it through the COVID-19 crisis unscathed. As a utility, it’s an essential business that’s able to operate normally through the crisis. It’s also able to withstand the recession we’re likely entering. Utilities don’t usually lose money in recessions, because their core services are basic life necessities. People would rather sell their cars than go without heat and light. That gives Fortis impressive revenue stability. On top of all that, Fortis is a capital-intensive business that benefits from the current low interest rate environment. It’s a no-brainer pick for this environment.

Bank of Montreal

Bank of Montreal (TSX:BMO)(NYSE:BMO) is another long-term dividend stock with an incredible track record, having paid its dividend every year since 1829. That’s not a typo: we’re literally looking at a dividend streak going back to the early 1800s here.

To be sure, BMO’s business is under fire right now. As a Canadian bank, it’s vulnerable to mortgage defaults, consumer credit weakness, and oil & gas loans. These are all factors to keep in mind. However, BMO has survived worse crises than this one and come out unscathed. And remember: it’s been paying its dividend for nearly 200 years!

Canadian National Railway

Canadian National Railway (TSX:CNR)(NYSE:CNI) is Canada’s largest railroad company, with an enormous network that ships $250 billion worth of goods a year. Unlike the other stocks on this list, it’s not a huge yielder. However, it’s been a fantastic dividend-growth stock, raising its dividend year in and year out.

Like Fortis, CNR is able to operate normally through the COVID-19 crisis. Recent weekly metrics have shown it losing revenue on U.S. coal and petroleum shipments, but nothing devastating. Over the years, CNR has weathered many a crisis and managed to pay its dividend along the way. This is one ultra-reliable long-term stock you can count on for life-long income.

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 Andrew Button owns shares of Canadian National Railway. David Gardner owns shares of Canadian National Railway. The Motley Fool owns shares of and recommends Canadian National Railway. The Motley Fool recommends Canadian National Railway.

More on Dividend Stocks

worry concern
Dividend Stocks

Worried About a Recession? 2 Canadian Blue-Chip Stocks to Buy and Hold for Dear Life

A recession is worrisome. Buying two blue-chip TSX stocks and holding them for the long term will deliver stable, less…

Read more »

money cash dividends
Dividend Stocks

TFSA: 3 of the Best Canadian Dividend Stocks to Buy This Year

Are you looking for some of the best Canadian Dividend stocks to buy this year? Here are three great options…

Read more »

Man data analyze
Dividend Stocks

2 Recession-Tough Stocks to Buy in February 2023

TSX stocks, such as Jamieson Wellness, are trading at compelling valuations and might deliver stellar gains to investors.

Read more »

A worker overlooks an oil refinery plant.
Dividend Stocks

Defensive Investors: 3 Stocks to Shore Up Your Portfolio

Fortis is a defensive stock with an impressive track record.

Read more »

edit Woman calculating figures next to a laptop
Dividend Stocks

Passive Income: 2 Cheap Stocks to Buy and Never Sell

Buying dividend stocks cheap and discounted is a strategy many value investors pursue to maximize the return potential.

Read more »

Female friends enjoying their dessert together at a mall
Dividend Stocks

Dividend Stocks: Will Debt Load Put a Damper on This Top Stock in 2023?

This dividend stock has a very solid track record of revenue and cash flow growth, ,as well as dividend growth,…

Read more »

A plant grows from coins.
Dividend Stocks

How to Invest in One of the Most Important Commodities in the World (It’s Not Gold)

Many things we take for granted may offer economic value and a powerful investment opportunity beyond commodities like gold or…

Read more »

growing plant shoots on stacked coins
Dividend Stocks

Need Passive Income? Turn $15,000 Into $1,016 Annually With These 2 Dividend Stocks

Canadian investors with limited capital can create passive-income streams from two high-yield dividend stocks.

Read more »