3 Great Dividend Stocks for a Decade of Income

Looking to generate a reliable source of income? Here are three great options to consider that can provide a decade of income.

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The market is full of income-producing stocks. But can any stock can provide a decade of income growth? Fortunately, the answer is yes. Here are several great dividend stocks to consider adding to your portfolio today.

A leading telecom provides stability

Telecoms, with their stable business models, are well known for providing a reliable source of income. This is just one reason why BCE (TSX:BCE)(NYSE:BCE) tops the list of great dividend stocks to consider buying now.

The stable telecom business model is evolving. While subscribers are engaging in cable-cutting, they are also doubling down on wireless connections. Think about that for a moment. We use our wireless devices for just about everything. Entertainment, commerce, communication are prime examples. And apart from making our lives easier and more connected, those data-hungry trends benefit BCE.

BCE has been providing investors with a handsome dividend for well over a century without fail. The current quarterly distribution works out to a mouth-watering yield of 5.39%. To put that income potential into context, a $25,000 investment will produce $1,347 income during the first year.

Reinvestments, dividend hikes, and growth will all help push that income potential even higher. In other words, BCE is a great option for income investors looking for a decade of income, if not more.

A growing U.S. presence makes this bank a good option

Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is one of Canada’s largest banks, but the long-term appeal of TD stems from outside Canada. Following the Great Recession, TD acquired several U.S.-based banks. TD then proceeded to stitch them together under a single brand: TD Bank.

Today, TD’s U.S.-based business has a branch network that stretches from Maine to Florida. In fact, the bank has more branches in the U.S. now than it has in Canada.

Even better, that incredible growth story is far from over. Despite that growing presence, TD is still represented almost wholly on the east coast of the U.S.

In terms of a dividend, TD offers a 3.80% yield. Investors should note that TD’s dividend may soon inch higher. Dividend hikes at Canada’s big banks were suspended during the pandemic. With improving financials and a return to normalcy looming, many see that restriction coming to an end soon. This makes TD a solid option to buy now and hold for the long term.

Your portfolio needs a renewable energy stock too

Renewable energy is set to become one of the defining trends of the next decade. From autonomous vehicles to solar-powered homes, the need to adopt renewable energy has never been greater.

The good news is that investors can jump on the renewable energy wagon as well. TransAlta Renewables (TSX:RNW) is one such superb option to consider.

TransAlta operates an all-renewable portfolio of facilities located across Canada, the U.S., and Australia. Those facilities encompass a variety of renewable technologies, including solar, wind, and hydro.

TransAlta adheres to the same stable business model that traditional utilities follow. In short, for as long as the lights stay on, TransAlta is generating a recurring and stable revenue stream. That revenue stream is backed by long-term regulated contracts that can span decades.

That revenue stream also means that TransAlta can provide investors with an appetizing dividend. Unlike the other stocks noted above, TransAlta pays out on a monthly cadence. The current yield works out to a juicy 4.77% yield. This means that a $25,000 TransAlta investment will earn you just shy of $100 each month.

Final thoughts

Every portfolio should have one or more income-producing stocks. All three stocks outlined above are well-diversified, profitable options to consider. In short, if you’re looking to generate a solid decade of income, you need these stocks as part of a well-diversified portfolio.

In my opinion, one or all of these stocks would make a perfect addition to any portfolio.

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 Demetris Afxentiou owns shares of The Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned.

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