3 Dividend Stocks to Buy Now if You Want to Retire in 20 Years

If you want to retire in the next 20 years, set it and forget it with these three dividend stocks that offer value and income!

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Retirement really isn’t just for senior citizens. It’s quite literally for everyone. Whether you’re investing for your child’s future or your own, the earlier the start, the easier it will be to reach your retirement goals. However, dividend stocks can certainly help you if you got a late start.

Today, I’m going to focus on three dividend stocks that could help you retire in the next 20 years. By investing now and reinvesting dividends along the way, you’re sure to achieve retirement without a worry!

TD Bank

One of the first options investors should consider when looking for long-term dividend stocks are through banks. The Big Six banks are some of the best investments because they have provisions for loan losses. Therefore, even in a downturn such as this one, they’ll be able to recover quite quickly.

Yet Toronto-Dominion Bank (TSX:TD) is one of the strongest options because it also offers growth. TD stock has already become one of the top 10 banks in the United States through expansion. TD stock is also expanding online and offers every type of loan repayment you can think of. Plus, there are partnerships through credit card companies and more to consider.

TD stock currently trades at just 9.31 times earnings, offering a dividend yield at 4.24% as of writing. Shares are down 7% as of writing (thanks to poor earnings) but up 995% in the last 20 years! That’s a compound annual growth rate of 12.7%.

BCE stock

Another long-term hold to consider are telecommunications companies. These companies are solid because there are first of all so few of them in Canada, and secondly provide exposure to internet and all the infrastructure involved.

Yet above the rest, I would choose BCE (TSX:BCE) for a number of reasons. It’s the largest of the telecom companies, first off, but it also offers the fastest internet speeds right now. Further, with so much infrastructure needed to expand the internet for BCE stock, there is even more growth to come.

Shares of BCE stock are down 5.4% in the last year, and it trades at 20.19 times earnings, so that’s quite fair in value. Yet long term, you can pick up a dividend yield at 6.41%, with 478% growth in shares over the last two decades. That’s a CAGR of 9.16% as of writing.

Choice Properties REIT

Finally, there are many real estate investment trusts (REIT) out there. However, you want to find one that has a solid history, and a solid future. That’s why diversification is everything, which is what you get with Choice Properties REIT (TSX:CHP.UN).

Not only does Choice stock own and operate residential buildings, but it is the leaser of most Loblaw properties. It’s since placed Loblaw companies below residential buildings to create multi-use, multi-revenue properties for investor consideration.

Now, Choice stock is up 6% in the last year, though it’s still valuable, trading at 14.42 times earnings as of writing. You can grab a 5% dividend yield as of writing, with shares up 153% since 2013 for a CAGR of 10%.

Bottom line

These three dividend stocks are prime choices for investors who want to set it and forget it. Each provides stellar passive income, with the dividend stocks proving they can rebound from downturns as well. So, I would certainly consider these three if you hope to achieve retirement in the next 20 years.

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 positions in Loblaw Companies and Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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