3 Top Dividend Stocks to Buy and Hold Forever

These three dividend stocks on the TSX today have offered substantial gains in the last year and could prove strong out of 2023.

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Today, I’m going to look at companies that are actually doing well. I know; it seems impossible, right? Well, apparently not — even when it comes to dividend stocks.

Let’s find some great companies on the TSX today among dividend stocks that can pay you for patience — even when shares aren’t as bad as you’d expect.

Element Fleet stock

Element Fleet Management (TSX:EFN) shares are up 47% in the last year alone. That’s insane, isn’t it? Even during a downturn, this company has come out on top. So, what’s been going on?

Well, for one, earnings beat out estimates for yet another quarter, when EFN stock announced earnings earlier in March. It was yet another quarter that surpassed expectations, with the fleet management company seeing even more revenue coming in.

This comes a lot from companies looking to decrease costs and seeking the aid of fleet management companies like EFN stock. With global locations, EFN is a low-risk option that you can hold for decades.

Shares are on par with where they were at the beginning of 2023, and it’s a dividend stock offering a 2.22% dividend yield as of writing.

Fairfax Financial stock

Yes, Fairfax Financial Holdings (TSX:FFH) is a finance stock. Finance stocks are not exactly doing well right now. Yet in the case of FFH stock, that’s not the case! Shares are up 48.2% in the last year alone as of writing, yet it still trades in value territory.

This company as well has come out with earnings that beat out estimates made by analysts. Revenue continues to soar throughout these quarters, and this comes down to the company continuing to see strength in its insurance sectors.

While a 1.48% dividend yield might not seem like much, look at the history of this company and you’ll see stability you can latch onto as well. Shares are still rising, up 8% year to date as of writing for some healthy growth as well.

Alimentation Couche-Tard stock

Alimentation Couche-Tard (TSX:ATD) is another solid long-term hold that I would consider, even after the pandemic left it bleeding, and even after oil and gas climbed and fell. After all that, ATD stock is still strong, growing, and expanding.

ATD stock is up 18% in the last year alone for some very healthy growth. Yet again, it trades near value territory as of writing, and shares are now offering a 0.92% dividend yield to bring in as well. Given the return to business and leisure travel using the company’s locations as well as global expansion, this is a solid one to consider.

ATD stock is on par with where it was at the beginning of 2023. That allows you to get into the company before it has the potential to surge once again.

Bottom line

While these three dividend stocks on the TSX today may not have the highest yields out there, they have high returns in the last year. But, more importantly, those are returns that are going to continue climbing long term. Each are low-risk investments doing well in this market and will certainly prove valuable after 2023 as well.

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 has positions in and recommends Alimentation Couche-Tard and Fairfax Financial. The Motley Fool has a disclosure policy.

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