3 Dividend Stocks That Could Pay You the Rest of Your Life

These three Canadian dividend stocks can help you grow your wealth fast in the long run if you act in time.

financial freedom sign

Image source: Getty Images

The TSX Composite has slid by 9.2% in 2022, as fears about a near-term recession amid rapidly rising interest rates continue to jolt the Canadian stock market. In turbulent times like these, it becomes even more important for investors to own some safe dividend stocks that can deliver reliable passive income, even during difficult economic cycles.

In this article, I’ll talk about three amazing dividend stocks in Canada that you can add to your portfolio right now to expect safe passive income for rest of your life.

Magna International stock

Magna International (TSX:MG) is an Aurora-headquartered mobility technology and auto parts company with a market cap of $21.5 billion. The company has a geographically well-diversified business and makes most of its revenue from the United States, Austria, Canada, Germany, Mexico, and China. At the current market price of $74.43 per share, MG stock has a dividend yield of 3.1%.

Its stock has lost 27.4% of its value in 2022, as global supply chain disruptions continue to affect its business this year. Nonetheless, these temporary challenges shouldn’t affect Magna’s long-term growth outlook, as it remains focused on expanding its presence in future mobility space, which could help its financials grow exponentially in the coming years. Given that, the recent dip in its stock could be an opportunity for long-term investors to buy it cheap.

Nutrien stock

Nutrien (TSX:NTR) is another reliable Canadian stock that could help you earn healthy passive income from its dividends for decades. It’s based in Saskatoon and has a market cap of $61 billion. The company mainly focuses on providing agricultural inputs and services. While the company continues expanding its presence across the globe, the United States, Australia, and Canada are three of its largest markets by revenue.

You can get an idea about its financial growth trends by the fact that Nutrien’s total revenue has jumped by 56% YoY (year over year) in the last 12 months. More importantly, its adjusted earnings during the same period have jumped by 239% YoY. You could expect the company’s stock to soar in the long term, as its financial growth improves with the help of consistently growing demand for crop inputs. At the current market price of $113.83 per share, NTR stock offers a decent dividend yield of 2.3%.

Open Text stock

Open Text (TSX:OTEX) could be another safe dividend stock in Canada that could help your money grow in the long run. This Waterloo-based enterprise software company has a market cap of $10.5 billion, as its stock hovers around $39 per share after losing nearly 36% of its value in 2032 so far. A big part of these losses in its stocks could be attributed to the recent broader market pullback. At this market price, OTEX stock has a dividend yield of 3.3%.

In the five years between its fiscal year 2017 and 2022, Open Text’s adjusted earnings rose by 59% with the help of a 52% increase in its sales. Apart from its well-proven financial growth track record, the company’s continued focus on new quality acquisitions to expand its market share makes this dividend-paying Canadian software stock stand out. That’s why long-term investors can consider buying it on the dip before it’s too late.

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.

The Motley Fool recommends Magna Int’l and Nutrien Ltd. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

More on Dividend Stocks

Hour glass and calendar concept for time slipping away for important appointment date, schedule and deadline
Dividend Stocks

This 8% Dividend Stock Pays Cash Every Month

Earn monthly cash of $154 with this 8% dividend stock.

Read more »

oil tank at night
Dividend Stocks

Think Oil Is Going Higher? 3 Dividend Stocks to Buy Now

Looking for steady dividend growth? These three Canadian oil stocks could provide substantial dividend income in the coming years.

Read more »

Profit dial turned up to maximum
Dividend Stocks

This 7% Dividend Stock on the TSX is Worth Watching

With this superb TSX stock now trading at the bottom of its 52-week range, it's certainly a dividend stock you'll…

Read more »

edit Businessman using calculator next to laptop
Dividend Stocks

2 TSX Dividend Stocks to Buy While They Still Offer Great Yields

These top dividend-growth stocks now offer 7% dividend yields.

Read more »

Dots over the earth connecting the world
Dividend Stocks

1 Magnificent Dividend Stock Down 23% to Buy Right Now Near a Once-in-a-Decade Valuation

Patient investors could be happy with this dividend stock a few years down the road.

Read more »

Human Hand Placing A Coin On Increasing Coin Stacks In Front Of House
Dividend Stocks

Best Stocks to Buy in May 2024: TSX Real Estate Sector

Besides yielding stable monthly passive income, these top TSX real estate stocks could help you earn high returns on your…

Read more »

exchange-traded funds
Dividend Stocks

These 2 Dividend ETFs Are a Retiree’s Best Friend

Retirees looking for steady income will love these two Canadian dividend ETFs

Read more »

Bad apple with good apples
Dividend Stocks

Safe and Sound Stocks for Canadians: My Top 5 Choices

Want some of the best stocks for Canadians right now? Here's my top 5 list of stocks to buy today…

Read more »