2 Dividend Stocks to Set and Forget

I guarantee you haven’t considered these dividend stocks as ones you can set and forget for decades, for a massive amount of income.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published December 6, 2022 3:00 pm EST

Investors seeking long-term income might be struggling these days. You want to set up some investments and forget about them, knowing they’ll continue to do well. The problem is, nothing seems to be doing well these days.

Today, however, I’m going to show you two dividend stocks to consider setting and forgetting. These may not have done well in the last year, but long term they’re steady-and-stable stocks you’ll look back on with pride. Further, they’ll help you reach any of your long-term goals thanks to the reinvestment of those dividends.

So if you’ve been sitting on around $10,000, let’s put it to work with these two dividend stocks.

Power Corporation of Canada

The Power Corporation of Canada (TSX: POW) is a strong choice for those seeking long-term income they can set and forget. It’s one of the dividend stocks that’s been on the market for decades, but is also in the stable and growing industry of insurance. Because of this, it has a worldwide network of income, with more revenue streams added on a regular basis.

The company also trades within value territory right now at just 11.3 times earnings, and a super high 5.93% dividend yield. And when you look at the company’s history, it’s just as valuable. Shares are up 334% in the last 20 years, for a compound annual growth rate (CAGR) of 7.6%. Meanwhile, its dividend has risen by a CAGR of 4.4% in that time.

All considered, you could safely store your $10,000 knowing it will grow at a steady rate. That investment could turn into $101,404 with dividends reinvested in another 20 years!

Open Text

I know, I’m recommending a tech stock for long-term income. How could you possibly set and forget this? But in the case of Open Text (TSX: OTEX), investors may want to make an exception. This tech stock is a strong choice with a long history of growth, along with major partnerships from household names.

The company focuses on cybersecurity and data storage in its cloud system. And some of the biggest brands in the world use the product, driving up revenue quarter after quarter. So right now, with shares trading as they are, this price offers a major steal for long-term income.

Open Text shares have climbed 776% in the last 20 years, for a CAGR of 11.5% as of writing. Further, its 3.31% dividend yield has climbed at a CAGR of 17% in the last nine years since the dividend was introduced.

Put simply, investors could see their $10,000 investment turn into $283,524 based on this historical performance in another 20 years!

Bottom line

If you’re looking for income you can set and forget, look for top dividend stocks that have a history of strong growth. Even better, find companies no one else is considering during this downturn! This will provide you with a likely boost coming out of a potential recession, and more income to look forward to for decades to come.