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3 Dividend Stocks to Buy Now and Hold Forever

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We live in an ever-changing world, and the concept of “forever” associations is fading out. People are now skeptical about even the most intimate relationships lasting forever, let alone business relationships and financial associations. The sentiment extends to investments as well, but even though the number might be limited, there still are some dividend-paying companies you can consider holding forever.

A packaging company

TC Transcontinental (TSX:TCL.A) offers a wide range of packaging and printing services and holds a dominant position in the packaging industry in Canada, the U.S., and Latin America. The company has been around for over four decades. The revenue dipped quite a bit during 2020, but it’s slowly picking up pace, and it might reach its pre-pandemic levels soon.

The company pays quarterly dividends and has been growing its payouts for 19 consecutive years, making it one of the oldest industrial Dividend Aristocrats. It offers a decent yield of 4%, and even though it’s not a growth, it offers an adequate enough 10-year compound annual growth rate (9.7%). The company is also focusing on sustainable packaging and will probably claim a sizeable portion in a greener packing market of the future.

A bank stock

The big-five are all rock-solid. The banks have proven their mettle time and time again, and you might consider Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) as a holding that you can stick with for decades. It comes second among the ranks of oldest Canadian dividend payers, as the bank has been issuing dividends since 1832. In a decade or so, its dividend streak would become two-century-old.

The third-largest bank in the country stands out among its peers for its significant international focus. It’s often called the most international bank of Canada, mainly due to its focus on Latin American and Caribbean markets.

Following the strong streak of others in the Big Five, the bank had a powerful last quarter. Its total revenue picked up from where it left off in 2019, and the chances are that it might keep growing steadily from here on. It’s currently offering a juicy 4.5% yield at a stable 67.9% payout ratio.

An exploration company

Canadian Natural Resources (TSX:CNQ)(NYSE:CNQ) is a Calgary-based exploration company and one of the largest natural gas producers in Western Canada and one of the largest heavy crude oil producers in the country, thanks to its massive land base. It also has energy assets in the North Sea and Offshore in Africa. It has been growing its natural gas and oil production capacity for a while now.

As long as the demand for natural gas, crude oil, and other oil-sands-related product doesn’t take a steep decline, the company might remain profitable. It showed fantastic resilience after the market crash and has already reached its pre-pandemic heights when it comes to valuation. It also maintained its two-decade-long dividend growth streak and is currently offering an enticing 4.8% yield.

Foolish takeaway

None of the three Dividend Aristocrats is offering a crazy-high yield, but when you think about holding a stock for decades or forever, the stability of dividends takes precedence over the yield itself. All three hold dominant positions in their respective industries and a well-established market, and they will likely keep growing their dividends for several years to come.

Speaking of three dividend stocks you can hold forever...

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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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends BANK OF NOVA SCOTIA and TRANSCONTINENTAL INC A.

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