3 Canadian Dividend Stocks to Buy and Hold Forever

Reduce your portfolio management workload by carefully selecting top-notch dividend stocks you can buy and hold forever!

Are you looking for Canadian dividend stocks to buy and hold forever? Here are three quality Canadian Dividend Aristocrats you can invest passively in through retirement for growing income.

A Canadian dividend stock you can trust

Brookfield Infrastructure Partners (TSX: BIP.UN)(NYSE: BIP) is a top-notch Canadian dividend stock to buy and hold forever. It has paid an increasing cash distribution since its inception after it was spun off from Brookfield Asset Management.

This year marks the 13th consecutive year of dividend growth for the global utility. That length of time covers the ebbs and flows of a business cycle, which suggests solid business performance through good and bad economic times. Otherwise, it couldn’t have maintained the dividend growth.

As a standalone stock, BIP has outperformed peers and the market on the TSX and NYSE since inception. On the TSX, with dividends reinvested, the dividend stock has generated annualized returns of 24% since inception.

This goes to show that the company’s global portfolio across different critical infrastructure assets is a winning combination that produces sustainable cash flow. Additionally, its portfolio requires low maintenance capital investments that average less than 20% of its funds from operations (FFO) while maintaining high EBITDA margins of over 50%.

The stock provides a decent yield of 3.7% currently and intends to increase the cash distribution by 5-9% annually. Consider holding BIP stock in your Tax-Free Savings Account (TFSA) for growing income tax-free.

A Canadian REIT for passive income

You become a real passive landlord by buying and holding forever units of quality real estate investment trusts (REITs) like Canadian Net REIT (TSXV: NET.UN).

As a relatively small REIT with only about 84 properties, the Canadian REIT has greater growth potential from acquisition opportunities.

Canadian Net REIT is a Canadian Dividend Aristocrat. This year marks its ninth consecutive year of dividend growth. Actually, it gained more traction with higher dividend growth in the last few years.

Investors can rest assured that its payout is rock solid as it has increased its cash distribution at a slower pace than its FFO growth in the long run, while maintaining a low payout ratio.

The triple-net/management-free lease REIT is an excellent value today as the stock dipped recently from raising gross proceeds of $17.5 million at $7.45 per unit. Expect management to allocate that capital well to grow the business.

Start with a 4% yield today and the dividend stock will likely raise cash distributions by at least 10% over the next few years. Also, consider holding NET.UN stock in your TFSA for passive tax-free income.

A proven dividend stock for growth

Alimentation Couche-Tard (TSX:ATD.A)(TSX:ATD.B) is the global convenience store and roadside fuel retailing leader. It began testing charging stations in Norway early on to prepare for the shift to electric vehicles.

The growth stock has performed acquisitions and integrations in the fragmented industry for decades. Management still sees M&A growth opportunities complemented by various organic growth initiatives.

ATD.B is a Canadian Dividend Aristocrat with a three-year dividend growth rate of 18%. At $48.58 per share at writing, the stock is still a great value trading at a trailing-12-month price-to-earnings ratio of about 15.7.

As it’s a growth-oriented dividend stock, investors can choose to hold it in any type of investment account — TFSA, RRSP, or taxable account.

The Motley Fool owns shares of and recommends ALIMENTATION COUCHE-TARD INC and Brookfield Asset Management. The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Asset Management Inc. CL.A LV, Brookfield Infrastructure Partners, and Canadian Net Real Estate Investment Trust. Fool contributor Kay Ng owns shares of ALIMENTATION COUCHE-TARD INC., Brookfield Asset Management, Brookfield Infrastructure Partners, and Canadian Net Real Estate Investment Trust.

More on Dividend Stocks

man in suit looks at a computer with an anxious expression
Dividend Stocks

Dividend Income in a TFSA: Why I Love This Tax-Free Setup

If you don't like paying tax on your passive income, use this tax-free set up in your TFSA to generate…

Read more »

woman looks ahead of her over water
Dividend Stocks

TFSA Retirement Plan: 2 Dividend Stocks Paying Nearly 6% Annually for Tax-Free Passive Income

These industry leaders now offer attractive dividend yields.

Read more »

middle-aged couple work together on laptop
Dividend Stocks

How I’d Build a $250-a-Month Income Plan Without Chasing the Biggest Yields

A roughly $75,000 portfolio can supply $250 a month on average without relying on unusually high yields.

Read more »

golden sunset in crude oil refinery with pipeline system
Dividend Stocks

Enbridge vs. TC Energy: Which Pipeline Stock Is the Better Buy Going Into 2027?

Let’s evaluate Enbridge and TC Energy across historical returns, growth prospects, dividend track records, and valuation to determine which pipeline…

Read more »

dividends grow over time
Dividend Stocks

How to Structure a $20,000 TFSA for Lifelong Monthly Income

These TSX stocks offer high yields and distribute monthly dividend payouts. Sustainable payouts generate steady income.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Use Your TFSA to Average $408.75 per Month in Tax-Free Passive Income

This strategy can lower risk while also boosting yield.

Read more »

some investments are riskier than others
Dividend Stocks

Manulife vs. Sun Life: Which Stock Makes More Sense for a Retirement TFSA?

Sun Life offers slightly more starting income, while both insurers bring growth opportunities and market-sensitive risks.

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

Starting With $25,000: How I’d Build Towards $500 a Month in Dividends

A $25,000 starting portfolio can become a useful income engine, with contributions doing more of the work than a giant…

Read more »