3 Safe Dividend Stocks to Own for the Next 10 Years

Canadian investors with a long-term investment horizon should do well by accumulating shares in these solid dividend stocks this year.

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Given the recent higher inflation Canadians have experienced, we can certainly do better with greater passive income. Here are three safe dividend stocks that offer nice dividend yields that I believe could deliver above-average dividend growth in their respective industries.


TELUS (TSX:T) is one of the Big Three Canadian telecoms. At writing, it offers a decent dividend yield of almost 4.9%. Importantly, the dividend stock has a 19 consecutive year track record of dividend increases that has beat its peers in terms of dividend growth. For example, its five-year dividend-growth rate was 6.6%, which beat its other two peers that averaged a growth rate of about 3%.

TELUS’s trailing 12-month payout ratio is sustainable at about 74% of net income available to common shareholders. Moreover, management believes it can increase the dividend by 7-10% per year through 2025. This is great news for shareholders, as it means a greater growth rate than the recent past!

For TELUS stock’s defensiveness and resilience, investors aren’t getting much of a discount in the stock today at $28.75 per share at writing. However, it’s not expensive either. To get more of a discount, look for a dip of 5% or more.

TD stock

Despite the shakeup that has been happening in the banking sector, such as the U.S. regional banks, Toronto-Dominion Bank (TSX:TD) remains a top bank stock to own for the next decade and beyond. The shakeup is providing investors a fabulous opportunity to accumulate TD shares at an amazing discount. At $81.48 per share at writing, analysts believe the bank stock offers a discount of roughly 18%.

Because of TD’s retail banking focus in Canada and the United States, it tends to be a defensive pick that provides above-average, long-term growth versus the Big Six Canadian banks as a group. For instance, its 10-year dividend-growth rate was 9.4% versus the rest of the group that averaged a growth rate of about 7.2%. Currently, it starts you off with a good dividend yield of 4.7%.

Brookfield Infrastructure

Brookfield Infrastructure Partners (TSX:BIP.UN) is a utility stock that beat the long-term market and industry total returns. Its dividend-growth rate was also extraordinary. For example, its 10-year cash-distribution growth rate was 9.1% versus Emera’s 7%. The reason I picked Emera as a comparison is because it already was a relatively fast-growing utility in the period.

At US$34.75 per unit at writing, analysts believe Brookfield Infrastructure trades at a discount of about 19%. It also offers an initial cash-distribution yield of 4.4%, which is not bad at all. The company, through its subsidiary Brookfield Infrastructure and its institutional partners, is acquiring Triton to expand its transportation business. The press release reads, “Triton is the world’s largest owner and lessor of intermodal containers and is a critical provider of transportation logistics infrastructure supporting global supply chains.”

BIP also has infrastructure assets across the utilities, midstream, and data sectors. So, it has plenty of growth opportunities down the road.

Investor takeaway

Across these three safe dividend stocks, Canadian investors can get an average dividend yield of almost 4.7% on an equal-weight portfolio. Together, they have solid long-term growth expectations and are worthy of owning for the next 10 years and beyond for solid wealth creation from compound interest.

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 Kay Ng has positions in Brookfield Infrastructure Corp., Brookfield Infrastructure Partners, TELUS, and Toronto-Dominion Bank. The Motley Fool recommends Brookfield Infrastructure Partners, Emera, and TELUS. The Motley Fool has a disclosure policy.

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