Earning passive income by investing your money and enjoying returns from your investment for the rest of your life is a possibility if you find the right assets to buy and hold. Owning high-quality dividend stocks for the long term could be the best way to make the most of your investment capital for the total returns you stand to earn.
Investing in undervalued stocks trading for a discount can provide you with significant wealth growth through long-term capital gains. If you are a young investor, you should know that owning high-quality dividend stocks for the long run is an excellent way to extract the most value out of your investment capital.
It is a crucial part of building a well-diversified investment portfolio that could make you a far wealthier investor by the time you retire.
Today, I will discuss two excellent dividend stocks that warrant a place in your investment portfolio if you are looking for value investments with long-term growth potential that offer shareholder dividends for passive income.
BCE
BCE (TSX: BCE)(NYSE: BCE) is a $67.13 billion market capitalization giant in the Canadian telecom industry. Companies with highly defensive businesses are well positioned to deliver a lifetime of passive income to their investors, and BCE could be an excellent asset to consider.
BCE is the largest telecom company in Canada. It can generate significant cash flows through its operations regardless of macroeconomic conditions.
BCE stock provides an essential service in an increasingly digital age. It is also investing in expanding its 5G infrastructure to leverage the demand for the new communications technology. Its dominant position in the Canadian telecom industry could make it an excellent long-term investment for passive income and capital gains. BCE stock trades for $73.13 per share at writing, and it boasts a juicy 5.03% dividend yield.
Emera
Emera (TSX: EMA) is another Canadian dividend stock that you could consider adding to your income-generating portfolio. Emera is a $16.97 billion market capitalization multinational energy holding company headquartered in Nova Scotia. The company offers electric and gas utility services to millions of customers across six different countries.
Utility businesses have always been considered some of the safest investments. The essential nature of the service they provide virtually guarantees stable cash flows. Stable and steady income for the company translates to reliable returns for shareholders. Emera stock trades for $16.97 per share at writing, and it boasts a 4.11% dividend yield that you can lock into your portfolio today.
Foolish takeaway
Whether you want to create a passive-income stream to supplement your active income or build a portfolio of income-generating assets for compounded long-term wealth growth, the TSX boasts plenty of top stocks you can choose from for your self-directed portfolio.
It is crucial to choose high-quality businesses with the potential to deliver significant returns in the long run if you plan on parking your capital for a long time.
BCE and Emera are high-quality businesses in their respective industries. Both stocks have the potential to generate significant cash flows for a long time and deliver reliable shareholder dividends. BCE stock and Emera stock could be viable additions to your portfolio if you are looking for stocks that could provide a lifetime of income.
