Millennials: 3 Dividend Stocks You Can Trust Forever

Millennial investors should look to target trustworthy dividend stocks like Hydro One Ltd. (TSX:H) and others to hold this decade.

| More on:
Happy shoppers look at a cellphone.

Source: Getty Images

Academics and policymakers are wrestling with one of the defining issues of our age: wealth inequality. Canadian society has grown more stratified since the Great Recession. That trend is even more apparent among the millennial demographic. This demographic is defined as those born between 1980 and 1994. According to a 2019 Statistics Canada study, the top 10% of millennials hold 55% of the total wealth of their generation. That gap likely widened after the COVID-19 pandemic. Millennial investors should look for every advantage they can to increase and protect their wealth.

Today, I want to look at three dividend stocks that you can trust forever.

Here’s a telecom stock millennials can hold for the long haul

Millennial investors should look to target dividend stocks in dependable industries. Canadian telecommunication companies enjoy all the benefits of a monopoly. This has been a nightmare for consumer choice, but it has made these companies a very safe bet for shareholders. Telus (TSX:T)(NYSE:TU) is a telecom that has delivered some of the best results among its peers over the past several years.

Shares of this dividend stock have climbed 1.1% in 2022 as of close on August 12. The stock is up 4.7% from the previous year. It released its second-quarter 2022 earnings on August 5. Operating revenues climbed 6.4% year over year to $4.37 billion. Meanwhile, it posted adjusted net earnings of $422 million or $0.32 per share — up 21% or 23%, respectively.

This dividend stock currently possesses a solid price-to-earnings (P/E) ratio of 22. Millennials can also gobble up its quarterly dividend of $0.339 per share. That represents a 4.5% yield.

This dividend stock has delivered income growth every year since its inception

Hydro One (TSX:H) is a Toronto-based electricity transmission and distribution company. Millennials should be interested in holding a stock that boasts a utility monopoly in Canada’s most populous province. Shares of this dividend stock have increased 7.4% in 2022 in the face of broader volatility.

The company unveiled its second-quarter 2022 earnings on August 9. Basic earnings per share (EPS) increased 7.5% year over year to $0.43. It delivered earnings growth on the back of approved rates for the transmission and distribution segments as well as higher demand. Moreover, it has boosted its capital investments and in-service additions to $612 million and $547 million in the second quarter.

Millennials should seek out stocks that have a long history of dividend growth. Hydro One has delivered dividend growth every year since its TSX debut. This dividend stock last paid out a quarterly dividend of $0.28 per share, representing a 3.1% yield.

One more dividend stock millennials can trust in 2022 and beyond

Waste Connections (TSX:WCN)(NYSE:WCN) is the third stock I’d suggest millennials snatch up for the long term. This Toronto-based company provides non-hazardous waste collection, transfer, disposal, and resource recovery services in North America. The waste disposal business is an essential service that investors can depend on for many years to come.

This dividend stock has climbed 6.1% in the year-to-date period. In the second quarter 2022, the company posted revenue growth of 18% to $1.81 billion. EBITDA stands for earnings before interest, taxes, depreciation, and amortization. This measure seeks to give a better picture of a company’s profitability. Waste Connections reported adjusted EBITDA of $566 million — up 16% from the prior year.

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 TELUS CORPORATION.

More on Investing

online shopping

2 Top TSX Retail Stocks to Buy in October

My two top TSX retail stocks to buy in October are Aritzia (TSX:ATZ) and Dollarama (TSX:DOL).

Read more »

money cash dividends
Dividend Stocks

Want Passive Income: Hold This Canadian Dividend Growth Stock Forever

Passive income seeking investors can now buy shares of dividend-paying blue-chip companies at a discount, such as Brookfield Infrastructure.

Read more »

Modern buildings in business district
Bank Stocks

TD and CIBC Stock: 2 Top Banks to Buy for Big Yields

TD Bank (TSX:TD)(NYSE:TD) stock is a dividend juggernaut that's a must-buy for its cheap yield.

Read more »

Gold bars
Metals and Mining Stocks

Gold Stocks That Could Soar if the Fed Pauses Rate Hikes

In choppy waters, two gold heavyweights look too good to pass up right now given their lowered entry points, dividend…

Read more »

Clean energy
Energy Stocks

Better Buy: Renewable Energy or Uranium Stocks?

The world is shifting towards clean energy sources, creating investment opportunities in the renewables sector. What's a better bet: environmental…

Read more »

retirees and finances
Energy Stocks

These 3 Stocks Can Help Make You Richer by Retirement

Future retirees can be rich in their sunset years with the help of three distinguished dividend-payers on the TSX.

Read more »

A worker uses the cloud for paperless work. tech
Tech Stocks

Why I Think Constellation Software (TSX:CSU) Stock Has Market-Beating Potential

Constellation Software (TSX:CSU) could outperform the market over the next few years.

Read more »

data analytics, chart and graph icons with female hands typing on laptop in background

Got $5,000? These Are 2 of the Best TSX Growth Stocks to Buy Right Now

Canadian investors with some extra cash on hand should look to snatch up TSX growth stocks like goeasy Ltd. (TSX:GSY)…

Read more »