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

Are you looking for stocks that could pay you for the rest of your life? Here are three top picks!

| More on:
financial freedom sign

Image source: Getty Images

Dividend stocks are very popular among Canadians, because of their ability to provide a passive source of income. Over time, these dividends could grow to replace your primary source of income. This could allow you to spend more time on things you’re passionate about. When looking for dividend stocks to hold in your portfolio, it’s important to focus on their long-term potential. In other words, don’t be sucked in by today’s great yields if that’s an otherwise mediocre stock.

In this article, I’ll discuss three great TSX dividend stocks. I believe these three picks could pay you for the rest of your life.

Start with one of the best dividend stocks around

If I could only buy one TSX dividend stock today, it would be Fortis (TSX:FTS). This company provides regulated gas and electric utilities to more than three million customers across Canada, the United States, and the Caribbean.

Fortis is known for holding the second-longest active dividend-growth streak in Canada. It has raised its distribution in each of the past 49 years. The company projects that it’ll be able to continue raising its dividend at a compound annual growth rate (CAGR) of 4-6% through to at least 2027. In addition to that outstanding dividend history, Fortis offers investors an attractive forward yield of 4.18%.

This company has been increasing its distribution each year

Canadian National Railway (TSX:CNR) is the second blue-chip dividend stock that could pay investors for life. It operates one of the largest railway networks in North America. As of this writing, Canadian National runs about 33,000 km of track spanning from British Columbia to Nova Scotia and as far south as Louisiana.

Investors may be able to note that this company’s dividend yield is a lot lower than what investors normally aim for (1.70%). However, what’s impressive about Canadian National is that it’s managed to increase its dividend in each of the past 26 years. That makes it one of only 11 TSX-listed stocks to currently achieve that. Canadian National has increased its dividend at a CAGR of more than 12% over the past five years. That kind of dividend growth could help investors stay ahead of inflation.

A stock with a long history of raising its dividend

Telus (TSX:T) is the final stock that dividend investors should consider buying today. This company is known for operating the largest telecom network in Canada. All considered, its network area provides coverage to 99% of the Canadian population.

Although Telus doesn’t have one of the longest dividend-growth streaks around, it’s still very respectable. This company has raised its distribution in each of the past 18 years. In addition, Telus currently offers investors a forward dividend yield of 4.91%. With this combination of a strong dividend history and attractive yield, Telus should be an easy choice for passive-income investors.

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 Jed Lloren has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Dividend Stocks

3 Canadian REITs That Pay Out Every Month

$10 can buy you a stake in a REIT that pays monthly distributions yielding 8.2% annually. CT REIT and another…

Read more »

A meter measures energy use.
Dividend Stocks

3 Reasons to Buy Utility Stocks in 2023

Here's why adding utility stocks to your portfolio is a smart idea, as we face significant uncertainty in 2023.

Read more »

Modern buildings in business district
Dividend Stocks

2 Top Residential REITs to Buy in February 2023

These two top residential REITs to buy offer attractive passive income as well as long-term growth potential.

Read more »

Simple life style relaxation with Asian working business woman healthy lifestyle take it easy resting in comfort hotel or home living room having free time with peace of mind and self health balance
Dividend Stocks

TFSA Investors: Make $102/Month Without Lifting a Finger

Here’s an amazing monthly Canadian dividend stock that can help TFSA investors earn reliable passive income for years.

Read more »

Dividend Stocks

TFSA Passive Income: Earn $129/Month Tax Free

Do you seek passive income? Leverage your TFSA to earn tax-free passive income via these Dividend Aristocrats.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Invest $23,000 in 2023 to Create Passive Income

Here's how income-generating cash cows such as Canadian Utilities and TC Energy can help you earn over $1,000 in annual…

Read more »

Early retirement handwritten in a note
Dividend Stocks

2 High-Dividend Stocks to Buy Today for Early Retirement

You can buy these two high-dividend Canadian stocks right now to help you plan an early retirement from work.

Read more »

worry concern
Dividend Stocks

Worried About Market Downturn? Buy This High-Yielding (6.3%) Dividend Stock

The stock market has been pretty volatile lately. It’s better to have a balanced portfolio that can perform in every…

Read more »