3 Buy-and-Hold Dividend Stocks With Enormous Long-term Potential

Dividend stocks like Nutrien are good long-term holdings, as they benefit from strong secular growth trends.

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Like it or not, investing in the stock market takes patience. It’s one of the most underrated qualities, yet it’s key to a successful investing career. So, with this in mind, let’s stop thinking about the short term. Instead, let’s focus on the long term. You can tap into higher long-term potential by buying the right buy-and-hold dividend stocks. This is where the big money is made.

Without further ado, here are three dividend stocks that can make you tonnes of money, if you hold them for the long term.

Altagas: A top stock yielding 4.8%

As a leading exporter of natural gas liquids like propane and butane, Altagas Ltd. (TSX:ALA) is on a path for continued growth. In fact, the world’s energy needs are only increasing, while the supplies are increasingly scarce. This is what makes Altagas a top buy-and-hold dividend stock for long-term returns. It is, in my view, one of the best dividend stocks in Canada.

Through Altagas’ global export platform, which includes its Ridley Island Propane Export Terminal, the company is addressing the global energy shortage. For example, Altagas is exporting record amounts of propane and butane to a variety of Asian markets. Also, the European market is rapidly becoming a key customer as it’s dealing with its own protracted energy crisis.

In 2021, EBITDA from the midstream segment at Altagas increased 55%. This was driven by a sharp increase in volumes of liquified petroleum gas (LPGs). Essentially, they have gone from 0 three years ago to 111,000 barrels a day last quarter. Also, volumes increased 27% versus the prior year.

Demand for North America’s cheap, clean, and secure energy shows no signs of stopping. The market has finally opened up to global forces. Thus, we are seeing unprecedented demand for Canada’s energy resources. This will continue, as Canadian natural gas is significantly more attractive than the alternatives. It’s cleaner than coal, more reliable than energy from places like Russia, and cheaper.

Northland Power: Yielding 3.09%

When we talk about global energy needs, renewable energy must also be part of the conversation. It’s now clear to most that the world must decarbonize in order to save our environment and the precious earth that we inhabit. And when we talk about buy-and-hold, long-term dividend stock opportunities, renewable energy should also be part of that conversation. Clearly, this is where we’re headed, and the transition will take many years, if not decades.

This makes Northland Power (TSX:NPI) stock one to consider. With more than $2 billion in annual revenue and cash flow of more than $1.6 billion, Northland is gaining a real footing in the industry. In fact, its cash flows have grown at a five-year compound annual growth rate of 13.6%. This is steady growth in an industry that’s being uplifted by positive long-term trends – a secular shift.

All of this makes Northland Power another one of the best dividend stocks in Canada that can position you for robust long-term gains. Its dividend yield is currently a healthy 3.09%. This dividend income, along with the potential capital gains in the coming years, can set shareholders up well.

Nutrien: A 2.59% yielding stock

Nutrien Ltd. (TSX:NTR) is the world’s largest provider of crop inputs and services. Nutrien supplies potash, which is a fertilizer that helps increase crop yields and resist disease. It’s just one of a handful of products that Nutrien’s global supply chain provides to help “feed the world”.

The driving forces behind Nutrien’s potential include the growing global population. This will translate into growing demand for its products and services. Additionally, Nutrien is benefiting from a perfect storm on the supply side of things as well. In fact, according to Nutrien’s management, global grain stocks are expected to decline to the lowest level in more than 25 years. As we can see, this is an increasingly booming environment for Nutrien.

Today, this dividend stock is yielding a very respectable 2.6%. With so much long-term potential, it’s also one of the best dividend stocks in Canada. Thus, we can safely buy and hold Nutrien stock for enormous gains.

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 Karen Thomas has a position in Altagas and Northland Power. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

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