Young Investors: 3 Dividend Stocks to Own Forever

Young investors can chase stability in a turbulent market with dependable dividend stocks like Hydro One Ltd. (TSX:H) and others.

| More on:
Woman has an idea

Image source: Getty Images

Young investors may be frustrated by the volatility markets have experienced since the latter half of April. This correction illustrates why it is important for Canadian investors of all stripes to snatch up and hold dividend stocks that you can depend on for steady capital growth and consistent income. Today, I want to look at three dividend stocks that young investors can buy and hold for the long haul. Let’s jump in.

Young investors can trust this strong utility stock

Hydro One (TSX:H) is the first dividend stock I’d suggest for young investors as we approach the middle of June. This Toronto-based company is the largest utility in Ontario. Its shares have climbed 3.9% in 2022 as of mid-morning trading on June 13.

The company released its first-quarter 2022 results on May 5. Earnings per share increased 15% year over year to $0.52. Meanwhile, revenues were reported at $2.04 billion — up from $1.81 billion in the previous year. Hydro One benefited from approved rates from its transmission and distribution segments. Moreover, the company posted improvement due to improved peak demand and higher energy consumption.

This dividend stock currently possesses a very solid price-to-earnings (P/E) ratio of 20. It last paid out a quarterly dividend of $0.28 per share. That represents a 3.2% yield. Young investors can snatch up a profit machine that has hiked its dividend annually in every year since its debut on the TSX.

Here’s a dividend stock that has delivered a quarter-century of income growth

Enbridge (TSX:ENB)(NYSE:ENB) is a Calgary-based energy infrastructure giant. Canada’s energy sector has been on fire in 2022 on the back of surging oil and gas prices. Shares of this dividend stock have climbed 13% so far this year. That has made up the bulk of its year-over-year gains. Young investors on the hunt for an income beast with a long history of annual dividend growth should look to Enbridge as we look ahead to the summer season.

In Q1 2022, Enbridge delivered adjusted earnings of $1.7 billion or $0.84 per common share — up from $1.6 billion, or $0.81 per common share, in the previous year. Meanwhile, adjusted EBITDA rose to $4.1 billion compared to $3.7 billion in the first quarter of 2021. This inspired management to reaffirm its promising full-year guidance for EBITDA and distributable cash flow (DCF) per share.

Shares of this dividend stock last had a solid P/E ratio of 19. It offers a quarterly dividend of $0.86 per share, which represents a tasty 6.1% yield.

One more perfect dividend stock for young investors

BCE (TSX:BCE)(NYSE:BCE) is the third and final dividend stock I’d suggest for young investors right now. This is one of the top telecommunications companies in Canada. BCE stock has increased marginally so far in 2022. Its shares are still up 8.5% in the year-over-year period.

This company unveiled its first-quarter 2022 earnings on May 5. Its posted operating revenue growth of 2.5% to $5.85 billion. Meanwhile, adjusted EBITDA increased 6.4% to $2.58 billion. This dividend stock also possesses a solid P/E ratio of 20. It last paid out a quarterly dividend of $0.92 per share. That represents a strong 5.5% yield.

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 of the stocks mentioned. The Motley Fool recommends Enbridge.

More on Dividend Stocks

Businessman holding tablet and showing a growing virtual hologram of statistics, graph and chart with arrow up on dark background. Stock market. Business growth, planning and strategy concept
Dividend Stocks

TFSA Magic: Earn Enormous Passive Income That the CRA Can’t Touch

If you're seeking out passive income, with zero taxes involved, then get on board with a TFSA and this portfolio…

Read more »

Man with no money. Businessman holding empty wallet
Dividend Stocks

2 Stocks Under $50 New Investors Can Confidently Buy

There are some great stocks under $50 that every investor needs to know about. Here’s a look at two great…

Read more »

think thought consider
Dividend Stocks

Down 10.88%: Is ATD Stock a Good Buy After Earnings?

Alimentation Couche-Tard (TSX:ATD) stock might not be the easy buy-case it once was. Here’s a look at what happened.

Read more »

money cash dividends
Dividend Stocks

TFSA Dividend Stocks: Earn $1,200/Year Tax-Free

Canadian stocks like Fortis are a must-have in your portfolio to earn tax-free yields for decades.

Read more »

sale discount best price
Dividend Stocks

1 Dividend Stock Down 11 Percent to Buy Right Now

Do you want a great dividend stock down 11% that can provide years of growth potential? Here's one heavily discounted…

Read more »

Growth from coins
Dividend Stocks

1 Grade A Dividend Stock Down 11% to Buy and Hold Forever 

If you're looking for the right dividend stock at the right price, you're going to want to consider this insurance…

Read more »

Target. Stand out from the crowd
Dividend Stocks

2 Dividend Stocks to Double Up on Right Now

Are you looking for dividend stocks to buy right now? Here are two top picks!

Read more »

edit Taxes CRA
Dividend Stocks

Tax Time: How to Keep More of Your Money

Nearly everyone hates paying taxes, although Canadians can lessen the financial pain with the right tax strategies.

Read more »