New investors may be inclined to buy low and sell high in an effort to score a nice gain. However, when it comes to dividend stocks, I think “buy and hold for the long haul” may be a strategy worth considering.
Sure, a dividend may not make a huge amount of difference today, especially if you’re investing just a small amount (like $1,000) to start.
However, if you purchase shares of a company with a proven record of dividend growth, dividends could stand to become more influential over the years. The longer you hang onto a truly wonderful dividend stock, the more bountiful a dividend can grow to become! In that regard, I’m in the belief that investors, even young ones, should not neglect dividends, even if it’s capital gains they seek.
As inflation looks to pullback over the next year or so (who knows when inflation will finally hit normalized levels), I think today’s slate of dividend stocks that sport yields skewing towards the higher end of the range look like very intriguing value plays.
Reliable dividend stocks are great holds over the long term!
From a long-term perspective, the high-yielding dividend payers with histories of growth look like prudent plays to just stash and forget in your retirement fund. And in this piece, we’ll check out two names that I believe stand out given potential growth opportunities that lie ahead in the next decade and their reliable dividends.
In many ways, dividends are the gift that keeps on giving. And whenever you can get growth and a solid, “growthy” payout, you may have a stock that may be worthy of a semi-permanent (or at least a name you’d want to hold for an extremely long time horizon) spot in your portfolio.
In this piece, we’ll look at one dividend heavyweight that I believe can grow its payouts at a decent rate over the next 10 years.
Quebecor: A dividend underdog that’s looking quite cheap
Quebecor (TSX:QBR.B) is a Quebec-based telecom that you may have heard in the news recently. The company has an ambitious management team that wants to move beyond the province of Quebec in an attempt to become a competitor in Canada’s national telecom market.
Canada’s telecom market is quite competitive, but it’s not immune from disruption. As Quebecor looks to expand its horizons, I think its investors could stand to enjoy a nice mix of gains and dividend growth through the next decade.
The company is fresh off a 46% or so surge from trough to peak. Though shares have come back a bit, slipping nearly 5%, I still think Quebecor’s remarkable rally has room to the upside.
The stock trades at a very reasonable 13.3 times trailing price to earnings. The 3.55% yield isn’t at towering as it was just a few months ago. However, I still think the stock is a great value for longer-term value investors seeking a decent risk/reward over the next 10 years.
Only time will tell how Quebecor fares against its national telecom rivals. Regardless, I think the firm could surprise us all, as it looks to challenge pricing in the future.