TFSA Investors – 2 Dividend Stocks I’ll Buy Until I Die

These two dividend stocks were some of my first purchases, and they’ll continue to be in my portfolio for as long as we both shall live.

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Retirement

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The Tax-Free Savings Account (TFSA) has to be one of the best places to store your dividend stocks. You can continue to create passive income quarter after quarter, or even month after month, taking it out whenever you need it. Oh, and of course it’s all tax free!

Yet when it comes to dividend stocks for my TFSA, there are ones I continue to go back to again and again. And I’m practically certain I’ll continue to feed into them over and over until I can’t possibly purchase any more.

So here’s why I’ll always come back to dividend stocks NorthWest Healthcare Properties REIT (TSX:NWH.UN) and Royal Bank of Canada (TSX:RY).

NorthWest

NorthWest REIT is an easy choice for me. The company hasn’t been on the market long, but in that time shown it’s a solid investment. NorthWest REIT invests in healthcare properties around the world. It came on the market pre-pandemic, and then soared upwards as it provides the essential properties for healthcare we desperately needed.

Yet, it also showed during this time that there is a severe lack of these properties. So NorthWest REIT continues to purchase them again and again, creating a massive portfolio of assets ranging from hospitals to even parking garages.

Even though it continues to purchase properties and make acquisitions and mergers, the company still hasn’t done so well this year. Shares are down 40.5% in the last year and 14% year to date. But really, there isn’t a great reason. It continues to have an average lease agreement at 14 years, and an occupancy rate at 97%!

So yes, I’ll continue to purchase NorthWest REIT and bring in a dividend each month, currently with a yield at 9.73%.

Royal Bank of Canada

Perhaps the first stock I ever bought was Royal Bank stock. And honestly, I’ve never looked back. I’ve continued to invest in Royal Bank stock over the years as my go-to, and for good reason.

Royal Bank stock is the largest of the Big Six Banks by assets and market capitalization. While it certainly will drop during recessions, it has shown in the past that shares can recover within a year of 52-week lows. This comes from creating provisions for loan losses to help get the company back to square one.

Yet all Big Six Banks have provisions, so why Royal Bank? The bank focuses on lucrative revenue streams such as wealth and commercial management, as well as its capital markets segments. These don’t merely disappear during a recession. So while interest rates and inflation will hurt it for now, it will certainly remain a stable long-term hold.

In fact, shares are down just 3.5% in the last year. It now trades at a valuable 12.6 times earnings, with a 4% dividend yield as well. So I’ll definitely continue to feed into this stock as well for as long as I live.

Bottom line

While you may not invest in these two dividend stocks today, there are themes you can look for. Both have long-term deals that will allow for long-term revenue. Further, these are essential services that won’t disappear overnight. No matter what you choose, make sure the stocks you invest in are ones that will last the test of time. Because that’s the true way to wealth.

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 NorthWest Healthcare Properties Real Estate Investment Trust and Royal Bank of Canada. The Motley Fool recommends NorthWest Healthcare Properties Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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