Early retirement seems like a dream, doesn’t it? One that couldn’t possibly come true. Yet many Canadians can still achieve this dream and make it a reality. By preparing properly and setting yourself up for long-term success, you can certainly achieve early retirement and stock work for good.
How? By creating a solid passive-income portfolio. And I do mean passive income — not just dividends. Investors tend to forget that returns count as passive income, too! This is why today we’re going to focus on three dividend stocks that can set you up for long-term gains, both in returns and dividend passive income.
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Constellation Software
Constellation Software (TSX:CSU) has become a master at acquiring software companies. These companies are those that provide essential services to our everyday lives but perhaps need a jolt to get them into everyone’s hands.
This is where Constellation stock comes in, buying up these companies and giving them what they need to thrive and expand. And, of course, the stock gets a huge piece of the action. It’s been successful for decades, allowing for even more decades of growth in the future.
In fact, Constellation stock has increased 40% in the last year and a whopping 1,352% in the last decade. While that’s likely to slow in the next decade, you can still look forward to immense and stable growth. As well as a dividend of $5.43 per share on an annual basis.
Dollarama
A great choice if you want to protect your cash during a downturn, Dollarama (TSX:DOL) is another stock to consider. Dollarama stock tends to be one of the last retail companies hit by inflation, using this to allow consumers to come to their stores as much as possible before raising prices.
The revenue made allows Dollarama stock to open in even more locations across the country. And it’s done this for years! Now, it’s looking beyond its borders, investing in Dollar City in Latin America. This allows investors to look forward to yet even more growth from the retail stock.
While the dividend of $0.27 per share annually isn’t all that high, returns sure are. Shares of Dollarama stock are up 540% in the last decade alone. And that certainly looks like it will continue.
WSP Global
Finally, WSP Global (TSX:WSP) is the last of the stable stocks that could bring you to early retirement. That’s because the stock is in the essential business of essential infrastructure. The consulting firm focuses on providing services to build rails, bridges, roads, you name it — all essential, all long-term contracts.
So, it’s no wonder that the stock has risen so far in the last few decades. And it looks like that should continue, thanks to even more solid contracts coming the company’s way. In fact, during its last earnings report, the company beat its expectations and increased its annual outlook!
Because of this, third-quarter results around the corner should see another jump in share price. That’s on top of the growth it’s seen in the last decade. Shares of WSP stock are now up 394% in the last 10 years, and again, this could only be the beginning. Plus, you can bring in a solid dividend of $1.50 per share annually as of writing.
