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.

| More on:

Image source: Getty Images

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 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.

More on Dividend Stocks

potted green plant grows up in arrow shape
Dividend Stocks

Best of Both Worlds: 3 Growth Stocks That Also Pay Dividends

Dividend stocks are great until a downturn ends. But luckily, these three dividend stocks also offer a massive amount of…

Read more »

Payday ringed on a calendar
Dividend Stocks

Monthly Passive Income: 2 Top TSX Dividend Stocks to Buy in June 2023

Here are two of the best TSX monthly dividend stocks you can buy in June 2023.

Read more »

Female hand holding piggy bank. Save money and financial investment
Dividend Stocks

RRSP Wealth: 2 Great Canadian Dividend Stocks to Buy in June 2023

Top TSX dividend stocks are now on sale.

Read more »

Retirees sip their morning coffee outside.
Dividend Stocks

Retirees: 2 TSX Dividend Stocks That Reliably Pay You Cash

With strong underlying businesses, high-yielding dividends, and stable cash flows, these two TSX stocks can be excellent investments to consider.

Read more »

sad concerned deep in thought
Dividend Stocks

Better Buy for TFSA Passive Income: Telus Stock or TD Bank? 

Your passive income depends on the dividend yield you lock in. Telus and TD Bank are good investments, but which…

Read more »

Dividend Stocks

Turn a $10,000 Investment Into $844 in Cash Every Year

The power of compound interest from regular investments in quality dividend stocks can deliver solid long-term returns and make you…

Read more »

Dividend Stocks

Grab This 10.8% Dividend Yield Before It’s Gone!

This dividend stock is down 43% in the last year, and it's about to turn around in the near future.…

Read more »

grow dividends
Dividend Stocks

2 TSX Dividend Stocks With Seriously Huge Payouts 

If you are looking for dividend payouts of up to 7-11% of the stock price, now is the time, as…

Read more »