4 of the Best Dividend Stocks to Buy for a Lifetime

If Motley Fool investors want cash quick, dividend stocks to buy for decades are the answer far before investing in volatile stocks.

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If there’s one mistake that can outdo all others when it comes to investing, it’s short-term investing. It’s a mistake that’s made over and over again by investors wanting to buy low and sell high. Now, I’m not saying that strategy is wrong, but there are other things to consider. For one, you can buy low and sell high by holding on to stocks to decades rather than a few months. As Warren Buffett says, don’t buy a stock for 10 minutes if you wouldn’t buy it for 10 years.

Luckily, there are lots of stocks that can actually pay you to own them, even if you don’t sell them for a lifetime. These are dividend stocks. They can pay out cash in the form of dividends every quarter and even every month. By investing in these dividend stocks, Motley Fool investors can create a passive-income stream that will last a lifetime. So, here are four options to get you started.


The Big Six banks are a great place to start when looking into dividend stocks. Each has been around for around a hundred years or more, never missing a payout in that time. Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is no exception and offers the highest dividend yield of the Big Six banks at 4.13%.

Now, it’s not cheap, but remember: you’re investing long term. So, let’s look at what that could look like. CIBC stock has grown 566% in the last two decades for a compound annual growth rate (CAGR) of 9.94%. It’s also grown its dividend yield by 5.28% in the last decade. And while the share price might be high, it’s still a steal with a price-to-earnings ratio (P/E) of just 12. So, this is one of the best dividend stocks for Motley Fool investors to consider.

Pembina Pipeline

CIBC gets Motley Fool investors stability among dividend stocks, but Pembina Pipeline (TSX:PPL)(NYSE:PBA) gets you growth. The oil and gas rebound is underway, increasing demand hand over fist for pipeline companies. Luckily, Pembina has a slew of growth projects coming online and in the works to pick up the slack. So, this could see your shares grow in the next few years at least, all while collecting a 6.31% dividend yield, which is dished out monthly.

Shares of Pembina stock have risen 661% during the last two decades for a CAGR of 10.67% and are slowly working back towards all-time highs seen in 2018. The dividend in that time has risen by a CAGR of 4.91%. And, again, that’s cash you can take out or reinvest each month if you want to! The stock remains cheap with a price-to-book ratio of 1.8 and price-to-sales ratio of 3.3, but given future growth, it won’t remain so for long.

NorthWest Healthcare

Real estate is another great option to consider as the economy reopens, but I still like healthcare REITs as a strong long-term option. As we learned, even in a catastrophe, we need healthcare. This is why revenue continued to climb for NorthWest Healthcare Properties (TSX:NWH.UN) during the pandemic.

The company continues to grow through acquisitions, most recently buying properties in the Netherlands and an Australian healthcare REIT. Shares are up 133% since coming on the market, and you can pick up a 6.15% dividend yield. And the stock remains a huge steal with a P/E ratio of just 9.7 as of writing.

WPT Industrial

Another industry we saw explode during the pandemic was e-commerce. But rather than buy these volatile companies, there are dividend stocks you can buy instead. WPT Industrial (TSX:WIR.U) is the perfect option, providing light industrial properties to ship and store e-commerce products. The company continues to buy up these properties as e-commerce use rises, and it’s expected to even outpace retail store sales by the end of the decade.

With a 4.12% dividend yield, this is one of the dividend stocks that should only continue to grow with further e-commerce growth. Shares are up 31% since coming up on the market, and it remains an absolute steal with a P/E ratio of 7.39 as of writing. Motley Fool investors are likely to see shares and dividends continue rising for years from this REIT, making now the time to buy.

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.


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