Millennials: 3 Dividend Stocks You Can Trust Forever

The recent market correction should spur millennials to snag top dividend stocks like Hydro One Ltd. (TSX:H) on the dip.

Ambrose O'Callaghan

Ambrose O'Callaghan graduated with a BA in Political Science from McMaster University. After that, he jumped into the banking world. He worked from the front line to an investment associate role. After that, he found a way to marry his experience and knowledge in the world of banking and finance to his love and passion for writing. Ambrose is a passionate believer in Warren Buffett's value investing model.

Published July 12, 2022 6:45 pm EDT

Millennial investors have hopefully been in the market long enough to experience a correction or two. This means that the demographic has experience on its side in the middle of another bout of market turbulence. The 2020 market pullback demonstrated that investors need to take advantage of big buying opportunities. In the meantime, it does not hurt to add top dividend stocks that you can rely on in the long term. That is what we are going to explore today.

Here’s a top dividend stock that has delivered since its 2015 debut

Hydro One (TSX: H) is a Toronto-based electricity transmission and distribution company. Its shares have climbed 3.6% month over month and 7.7% in 2022 as of late-morning trading on July 12. This super dividend stock has managed to defy the broader bear market.

The company is set to release its next batch of results in the first half of August. In Q1 2022, Hydro One delivered earnings per share (EPS) growth of 15% to $0.52. Hydro One was bolstered by higher rates for transmission and distribution segments in addition to very high energy demand. This is a company that millennials can rely on for the long term.

Shares of this dividend stock currently possess a solid price-to-earnings (P/E) ratio of 21. It offers a quarterly dividend of $0.28 per share. That represents a 3.1% yield.

Millennials should not sleep on this energy beast

Canadian energy stocks had a fantastic first half in 2022, as oil and gas prices soared in response to geopolitical pressures and surging inflation. However, those prices have rebalanced as fears of a recession has grown. Suncor (TSX: SU)(NYSE: SU) is a top integrated energy stock that is still worth targeting for millennial investors. This dividend stock is still up 20% in the year-to-date period.

Investors can expect to see Suncor’s second-quarter 2022 earnings later this month. Adjusted funds from operations (AFFO) rose to $4.09 billion, or $2.86 per common share — up from $2.11 billion, or $1.39 per common share, in the first quarter of 2021. Suncor leadership has expressed confidence in its ability to deliver strong profits, even as governments push for renewables.

This dividend stock has a favourable P/E ratio of 9.2. Moreover, it last hiked its quarterly dividend to $0.47 per share. That represents a solid 4.7% yield. Millennial can trust this energy giant for years to come.

One more dividend stock millennials can trust for the long haul

Waste Connections (TSX: WCN)(NYSE: WCN) is the third dividend stock I’d suggest for millennial investors in the middle of July. This Toronto-based company provides non-hazardous waste collection, transfer, disposal, and resource recovery services in North America. Its shares have dropped 5.2% so far in 2022.

In Q1 2022, revenues increased 17% year over year to $1.64 billion. Meanwhile, adjusted EBITDA climbed 15% to $502 million. This is an industry that millennials can rely on forever. Shares of this dividend stock are trading in favourable value territory compared to its industry peers. It offers a quarterly dividend of $0.23 per share, which represents a 0.7% yield.