3 Super Dividend Stocks to Hold Forever

Market volatility should spur you to snatch up top dividend stocks like Fortis Inc. (TSX:FTS)(NYSE:FTS) and BCE Inc. (TSX:BCE)(NYSE:BCE).

| More on:
money cash dividends

Image source: Getty Images

The S&P/TSX Composite Index rose 45 points on August 5. Canadian stocks enjoyed a broad bounce. Only base metals suffered a retreat, as investors appeared to flock from precious metals-linked equities. This rebound is promising, but investors should still be careful as volatility picks up. Today, I want to look at three top dividend stocks that you can rely on for years to come.

This super dividend stock is chasing a crown

Fortis (TSX:FTS)(NYSE:FTS) is a St. John’s-based utility holding company. In August 2020, I’d discussed why Fortis was a dividend stock you could hold for the long haul. Its shares have climbed 9.5% in 2021 as of close on August 5. The stock has defied market volatility, rising 3.1% month over month.

The company saw profit slip in the second quarter of 2021, and it missed analyst estimates. However, adjusted net earnings came in at $259 million, or $0.55 per share — up marginally from $258 million but down from $0.56 per share in Q2 2020. Fortis is on track to deliver dividend growth of roughly 6% annually through 2024 on the back of its five-year capital plan. This investment aims to significantly bolster its rate base.

This dividend stock last paid out a quarterly distribution of $0.505 per share. That represents a 3.5% yield. Fortis has delivered 47 consecutive years of dividend growth.

Why investors should look to stash green energy stocks right now

Last year, I’d also looked at dividend stocks that were worth holding in preparation for the future. Green energy stocks are poised for more growth this decade, as the public and private spheres push to reduce carbon emissions in the years ahead. TransAlta Renewables (TSX:RNW) is one of my favourite dividend stocks in this space. Its shares have dropped marginally in the year-to-date period.

This dividend stock is still up 45% from the prior year. At the time of publication of this article, the company will have unveiled its second-quarter 2021 results. In Q1 2021, TransAlta delivered comparable EBITDA growth of 4% to $123 million. Meanwhile, adjusted funds from operations (AFFO) were mostly flat at $93 million.

Shares of TransAlta possess a price-to-earnings (P/E) ratio of 42. This seems high at a glance, but the dividend stock is in solid value territory relative to its industry peers. It offers a monthly dividend of $0.07833 per share. That represents a 4.1% yield.

One more dividend stock to snatch up today

BCE (TSX:BCE)(NYSE:BCE) is the third and final dividend stock I want to zero in on today. This top telecommunications company released its second-quarter 2021 results on August 5. Net earnings jumped 149% year over year to $734 million. Meanwhile, BCE delivered revenue growth of 6.4% and adjusted EBITDA growth of 6.2%. The company concluded the second quarter with $5.3 billion in available liquidity, which puts the top telecom in a great financial position.

This dividend stock last had a favourable P/E ratio of 23. It announced a quarterly dividend of $0.875 per share, representing a strong 5.5% yield. BCE’s superior balance sheet should enable attractive dividend growth going forward.

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 stocks mentioned. The Motley Fool recommends FORTIS INC.

More on Investing

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

Better Artificial Intelligence Stock: UiPath vs. C3.ai

Deciding between UiPath and C3.ai isn't easy since both have strengths and weaknesses.

Read more »

data analyze research
Investing

The 1 Stock to Own in a Sideways Economy

Here's why Restaurant Brands (TSX:QSR) remains a top TSX stock investors shouldn't ignore for long-term gains in this market.

Read more »

Retirees sip their morning coffee outside.
Retirement

Here’s the Average RRSP Balance at Age 65 and 71 in Canada

Canadian investors can consider holding dividend stocks and supplement their CPP and RRSP payouts in retirement.

Read more »

Technology
Dividend Stocks

10 Years From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

The TSX is lucrative to buy these magnificent dividend stocks in bulk and be proud of this decision 10 years…

Read more »

sale discount best price
Energy Stocks

Time to Pounce: 1 Phenomenal TSX Stock That Hasn’t Been This Cheap in a While

Now could be the time to get into Cameco (TSX:CCO) stock, which is up 81% in the last year but…

Read more »

Digital background depicting innovative technologies in (AI) artificial systems, neural interfaces and internet machine learning technologies
Tech Stocks

3 Millionaire-Maker Tech Stocks That Should Be on Your Radar

These three tech stocks have already proven themselves worthy, but have a lot more to prove in the near future.…

Read more »

A close up image of Canadian $20 Dollar bills
Tech Stocks

3 No-Brainer Stocks to Buy With $20 Right Now

These three stocks are easy buys for those who don't have all that much to spend, and want long-term growth…

Read more »

calculate and analyze stock
Dividend Stocks

4 Fabulous Dividend Stocks to Buy in July

Are you looking for long-term income? These four dividend stocks should not only provide you with value in July but…

Read more »