2 TSX Dividend Stocks That Could Pay You Forever

These two dividend stocks have seen lots of growth lately, and with cash coming in, you can certainly look forward to more.

| More on:
money cash dividends

Image source: Getty Images

The TSX still isn’t doing well these days. Even after the market rebounded a bit from 52-week lows, it’s now sliding, down by 4% since the beginning of December. Given this, it’s clear why many investors are seeking out dividend stocks.

Today, that’s what I’m going to give you — and not just any dividend stocks. These stocks continue to do well, have solid futures ahead, and strong yields for your consideration.

Northland Power

Northland Power (TSX:NPI) is a strong choice for a number of reasons these days. Compared to the TSX and its drop of 4%, NPI stock is up about 4% in that same time. But the recent growth isn’t the only reason to consider Northland stock.

Shares are up 7% year to date, and the company offers a 3.08% dividend yield on top of this. That dividend is paid out on a monthly basis as well, which will definitely help in this high-priced, high interest rate environment.

But what I really like about Northland stock is it also has a solid past and solid future for growth. The company focuses on offshore wind farms, which could potentially be the biggest contributor to the renewable energy future. With arable land needed for a growing population, offshore wind farms offer higher wind speeds for more power, without taking over that land.

And Northland stock is still one of the dividend stocks that offers a huge deal, trading at just 14.22 times earnings and 2.5 times book value. So, if you’re looking for a solid future and strong dividends, I’d consider Northland stock.

BRP

Another of the top choices to consider from the last month is BRP (TSX:DOO). Now, to really understand why BRP stock is a great choice, you need to consider the last few years. The company made some smart sales at the right time, and recently upped its credit from lenders to help strengthen its balance sheet.

Now, shares are up 4.5% month to date, though they are still down about 5% year to date. Even so, it’s been beating other TSX dividend stocks and the TSX itself during that time. This has all come from consumer demand remaining strong, despite fears of a recession.

Earnings beat out estimates recently, with revenue up 71% year over year to $2.71 billion. Net income grew 11% to $141.2 million as well. The Ski-Doo and Sea-Doo maker even managed to raise its full-year guidance, as consumers till aim to purchase these pleasure crafts.

“We continue to see a strong level of pre-orders. Over 40 per cent of our expected North American retail for (the fourth quarter) is already pre-sold to consumers,” BRP chief executive José Boisjoli said. “Cancellation rates remain low… retail financing metrics remain quite favourable, demonstrating that our customers are in a strong financial position.”

Granted, this dividend stock is quite small at 0.61%. However, you’ll get strong returns and a strong future from BRP stock. Therefore, I would count it out to see more dividend increases in the very near future.

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 Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Brp. The Motley Fool has a disclosure policy.

More on Dividend Stocks

money cash dividends
Dividend Stocks

This 8.39% Dividend Stock Can Pay $100 Cash Every Month

Consider investing in this monthly dividend stock at current levels to lock in high-yielding monthly distributions to create a good…

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

Here’s the Average TFSA Balance in 2024

The Bank of Montreal (TSX:BMO) says that the average TFSA balance is $41,510, far below the maximum.

Read more »

A glass jar resting on its side with Canadian banknotes and change inside.
Dividend Stocks

Investors: Here’s How to Make $1,000 Each Month in Retirement

Here's how you can easily make $1,000 in monthly passive income in retirement in Canada, without taking on too much…

Read more »

man touches brain to show a good idea
Dividend Stocks

3 No-Brainer TSX Stocks I’d Buy Right Now Without Hesitation

Three TSX stocks that continue to overcome massive headwinds and beat the market are no-brainer buys right now.

Read more »

calculate and analyze stock
Dividend Stocks

TFSA Investors: 2 Top TSX Dividend Stocks to Buy on a Dip and Hold Forever

These top TSX dividend stocks now offer attractive yields and big potential capital gains.

Read more »

grow money, wealth build
Dividend Stocks

1 Dividend Stock to Buy for Growth and Stay for a 5.5% Yield

This dividend stock has been rising higher, but more could certainly be on the way. Now is the time to…

Read more »

A worker uses a double monitor computer screen in an office.
Dividend Stocks

2 Affordable Passive-Income Stocks That Pay Monthly

Are you looking for some passive-income stocks to build a recurring income stream? Here are two great options you can…

Read more »

woman data analyze
Dividend Stocks

Magna International Is Starting to Get Ridiculously Oversold

An undervalued stock with strong fundamentals and visible growth potential is a screaming buy for long-term gains.

Read more »