Passive Income: 3 Reliable Dividend Stocks to Buy and Never Sell

The stock market is volatile today! Now is the perfect time to own these three dividend stocks for long-term passive income and growth.

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2022 could be the year where Canadian dividend stocks outperform their technology and growth-orientated peers. Certainly, that is a bold prediction. Yet with concerns about COVID-19 persistence, geopolitical tensions in Europe, inflation, supply chain issues, and interest rates (to name a few challenges), stock markets have just been uneasy.

Consequently, sentiment for high-value, high-growth stocks has been seeping out of the market. In place, demand for steady-as-it-goes, reliable safety stocks is rising. Personally, I like to have a mix of both segments in a diversified portfolio. That way I can both protect and grow my wealth through the long-term ups and downs of the stock market.

If you are looking for some dividend stocks that you can tuck away for reliable passive income and capital returns, here are three that look attractive today.

A top infrastructure stock with a growing dividend

Infrastructure is a great asset because it provides a crucial element or service that society needs. As a result, infrastructure businesses capture reliable contracted or regulated streams of income. For exposure to a broad array infrastructure assets, Brookfield Infrastructure Partners (TSX:BIP.UN)(NYSE:BIP) is one of the best dividend stocks you can buy and hold.

It owns and operates everything from pipelines to ports to railroads to data centres and cell towers. Given its diversified operations, it can consistently deliver robust returns in almost any economic cycle. Over the past 10 years, it has delivered a consistent 21% compounded annual return. Nearly half that return came from a growing stream of dividends.

Today, BIP pays a 3.6% dividend to investors. It has a history of compounding that dividend by 10% compounded annual rate. That may slow, but even still, it is an attractive dividend stock to own for the long term.

A telecom stock with a long history of dividend growth

TELUS (TSX:T)(NYSE:TU) is another exceptional dividend stock to buy and never sell. Internet and cellular connectivity are nearly as vital to modern society as water, electricity, and heat. We use it to work, play, and live. That is why large telecom businesses like TELUS not only have a strong operating position, but they also should have ample growth ahead.

TELUS just released year-end results that were in line with expectations. Operating revenues and adjusted EBITDA increased 10% and 6.5%, respectively. It was its 2022 outlook that projected revenue and adjusted EBITDA growth in the 8-10% range that impressed the Street.

All around, TELUS has a great innovative business that keeps outpacing peers. Today, this stock pays a 4% dividend. It has increased that dividend annually by 8.5% for the past 10 years. For a growing stream of passive income, this is a stock you can count on.

An up-and-coming real estate stock for the long run

If you are looking for an interesting small-cap dividend stock to buy and hold for the long run, BSR REIT (TSX:HOM.U) is very interesting. It operates a high-quality portfolio of multi-family properties in some of America’s fastest-growing cities (Houston, Dallas, and Austin). Over the past few years, the REIT has repositioned its portfolio in new garden-style properties that are optimally located for strong rental rate growth.

It is now starting to see the results of that portfolio re-positioning. In the fourth quarter of 2021, it generated very strong 15% lease rate growth in its portfolio. This should likewise translate into very strong organic funds from operation growth as well.

Today, BSR’s stock yields a 2.75% dividend. BSR appears confident in its prospects, because it just raised its dividend payout by 4%. Likewise, insiders have been consistently buying stock, indicating further confidence in the long-term quality of this business.

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 Robin Brown owns BSR REAL ESTATE INVESTMENT TRUST, Brookfield Infrastructure Partners, and TELUS CORPORATION. The Motley Fool recommends BSR REAL EST INVST, Brookfield Infra Partners LP Units, and TELUS CORPORATION.

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