The Motley Fool

2 Heavyweight Dividend Stocks to Hold Forever

Image source: Getty Images.

Some analysts and economists are starting to sound a warning on the state of the markets in late February. The post-crash momentum from March 2020 has sustained for nearly a year at the time of this writing. Meanwhile, we have seen speculation run wild in the red-hot cryptocurrency space. Investors need to exercise extreme caution in this environment. Today, I want to look at two heavyweight dividend stocks that you can trust for the long term. Let’s dive in.

This dividend stock is still worth holding in the face of headwinds

Enbridge (TSX:ENB)(NYSE:ENB) is the first heavyweight dividend stock I want to look at today. This stands as one of the largest stocks by market cap on the TSX. Back in November 2020, I’d explained why investors can trust Enbridge for the long haul. Shares of this dividend stock have climbed 9.4% in 2021 so far.

The top energy firm released its final batch of 2020 results on February 12. Full-year GAAP earnings came in at $3.0 billion, or $1.48 per share — down from $5.3 billion, or $2.64 per share, in the prior year. Adjusted EBITDA was flat in the year-over-year period, coming in at $13.3 billion. Meanwhile, distributable cash flow (DCF) rose to $9.4 billion compared to $9.2 billion in the prior year.

Shares of this dividend stock last had a price-to-earnings ratio of 30 and a price-to-book (P/B)  value of 1.6. This puts Enbridge in favourable value territory relative to its industry peers. Moreover, Enbridge offers a quarterly dividend of $0.835 per share. That represents a tasty 7.6% yield. This is a top dividend stock that you can trust in an overheated market.

Should you invest in Suncor right now?

Click here to learn more!

One more dividend heavyweight to snag today

Suncor (TSX:SU)(NYSE:SU) is another Canadian energy giant. This dividend stock also boasts one of the larger market caps on the TSX. Its shares have climbed 12% in 2021 so far. I’d suggested that TFSA investors should scoop up Suncor earlier this month.

The company released its fourth-quarter and full-year 2020 results on February 3. Funds from operations came in at $1.22 billion, or $0.80 per share — up from $1.16 billion, or $0.76 per share, in the previous quarter. However, FFO were still more than halved from Q4 2019. Total upstream production was down marginally from the prior year. Meanwhile, synthetic crude oil production put in a solid increase.

Suncor faced huge challenges in 2020 in the face of the pandemic. Oil and gas prices were hammered due to plummeting demand. However, these prices have enjoyed a modest recovery in recent months. This is good news for this top dividend stock. Suncor is facing a new set of challenges, as the Biden administration has dealt some brutal blows to the Canadian energy sector.

Shares of Suncor last had a solid P/B value of one. Suncor last delivered a quarterly dividend of $0.21 per share, which represents a 3.5% yield.

Here are more reasons to snatch up Suncor stock right now...

Should you invest $1,000 in Suncor Energy right now?

Before you consider Suncor Energy, you may want to hear this.

Motley Fool Canadian Chief Investment Advisor, Iain Butler, and his Stock Advisor Canada team just revealed what they believe are the 10 best stocks for investors to buy right now... and Suncor Energy wasn't one of them.

The online investing service they've run since 2013, Motley Fool Stock Advisor Canada, has beaten the stock market by over 3X. And right now, they think there are 10 stocks that are better buys.

Learn More Today!

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 Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Enbridge.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss an important event.

Iain Butler and the Stock Advisor Canada team only publish their new “buy alerts” twice a month, and only to an exclusively small group.

This is your chance to get in early on what could prove to be very special investment advice.

Enter your email address below to get started now, and join the other thousands of Canadians who have already signed up for their chance to get the market-beating advice from Stock Advisor Canada.