2 Top Dividend Aristocrats to Buy and Hold Forever

Looking for dividend stocks to add to your portfolio? Investors should buy and hold these Dividend Aristocrats forever!

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Growth stocks usually get all the attention, especially from younger investors. However, holding shares of dividend stocks could be very beneficial. For one, it allows investors to receive a regular distribution in exchange for holding shares of a company. Over time, these positions could generate so much income that investors are able to replace the income received from their day jobs.

Another benefit of holding dividend stocks is that they tend to hold value much better during market downturns. This has been an important concept for investors in 2022 — a year in which many growth stocks have fallen more than 20%. But how do you get started investing in dividend stocks? It would be a good idea to start by looking at Dividend Aristocrats. These are companies which have raised distributions for at least five consecutive years. Here are two top Dividend Aristocrats to buy and hold forever!

The banks are known to be excellent dividend payers

The Canadian banking industry is dominated by the Big Five. One common trait that these banks share is that they are excellent dividend payers. Take Bank of Nova Scotia (TSX:BNS)(NYSE:BNS) for example. On July 1, 1833, the company announced its first dividend at a rate of 3% on an annual basis. It hasn’t missed a payment since then. This means that investors have been consistently receiving a steady stream of income from Bank of Nova Scotia for 189 years.

The company is listed as a Canadian Dividend Aristocrat with a dividend-growth streak of 11 years. Investors should notice that this streak is a lot smaller than the company’s streak of annual dividend payments. This is because Bank of Nova Scotia has had to stop increasing its dividend at times. One notable example was during the Great Recession. However, what’s impressive is that Bank of Nova Scotia has been able to keep investors happy by ensuring some sort of dividend for nearly two centuries.

This is the one of the best dividend stocks in Canada

If you could only pick one Dividend Aristocrat for your portfolio, investors should consider buying shares of Fortis (TSX:FTS)(NYSE:FTS). This company holds the second-longest active dividend-growth streak in Canada. It has managed to increase its dividend distribution for the past 47 years. That means that the Great Recession and pandemic caused by COVID-19 haven’t been able to halt its annual increases. That’s a very impressive feat.

Fortis may be able to do this because of the recession-proof nature of its business. Fortis provides regulated gas and electric utilities to 3.4 million customers across Canada, the United States, and the Caribbean. Because utilities remain in high demand regardless of what the economic situations may be, Fortis doesn’t tend to experience many slowdowns in its business. This is a great dividend stock to hold for investors of all ages.

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 Jed Lloren owns BANK OF NOVA SCOTIA. The Motley Fool recommends BANK OF NOVA SCOTIA and FORTIS INC.

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