3 Dividend Stocks You Can Safely Hold for Decades

These three dividend stocks have a lot coming in the future but still offer value for today’s investor on the TSX today.

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Investors these days have a great opportunity on their hands. There are some strong dividend stocks trading for a very valuable price. And what’s more, you can get that great deal and see strong returns for decades!

How do we know? These have already done it for years! So, feel confident grabbing these three dividend stocks and holding onto them for decades to come.

Algonquin stock

It’s been a tough few years for Algonquin Power and Utilities (TSX:AQN). However, the company is now seeing some strength once more after seeing its share price drop and slashing its dividend. The company now has been pegged as a strong idea for 2024.

Basically, analysts don’t see any more downside to Algonquin stock, though they are keeping their estimates on the modest side. Even so, confidence has improved in the ability of Algonquin stock to monetize the company’s renewable portfolio — especially as long-term bond yields decline.

Plus, the stock offers some strong valuation these days. So, altogether, you can grab the company’s active utility company, as well as its future renewable power and current projects online. The stock is now too cheap to ignore, trading at 0.95 times book value, and shares are down 11% in the last year. Investors can also grab a 6.62% dividend yield, which is far higher than its five-year average of 5.25%.

TFI stock

Another solid option for investors these days would be to consider TFI International (TSX:TFII) — especially as the market continues to come back, and the potential for a rebound in consumer spending once more. It’s now a favourite transportation name of some analysts after a late December acquisition of Daeke for US$8.30 per share.

This investment provided a strong opportunity for growth while also providing cost improvements. There really was just so much value in the trucking market, and the company continued to have so much cash on hand. So, this “straight-forward” opportunity provided an easy win for the stock.

The dividend stock now looks to increase its earnings per share substantially, especially with Daeke’s large fleet, which remains in great condition. This should allow TFI stock to slow down the “refresh” of its trucking fleet. Furthermore, it will remain with enough cash to allow for even more opportunities, buybacks, and a strong dividend. Currently, it offers a 1.21% dividend, with shares up 25% in the last year. But with such a strong balance sheet, there should be even more growth to come.


Finally, Manulife Financial (TSX:MFC) remains a strong long-term dividend stock to consider. This is especially true these days, as the stock reduces its exposure to long-term care facilities. Lower exposure to the risk brought on by long-term care recently led to a rise in share price, but it still offers a deal for investors.

This recent announcement was seen as the beginning of further reductions in long-term care, which could provide even more value for the company. But for now, Manulife stock has offered up more than 50 million share buybacks for 2024, starting in the first quarter.

Overall, analysts believed this was an “addition by subtraction.” The subtraction of some of its long-term care exposure has added to the company’s overall value. While it’s unlikely the stock will get rid of this exposure altogether, it’s now in a healthier position. Furthermore, investors can grab it for a great price. Investors can grab it trading at 4.16 times earnings as of writing, with a 5.01% dividend yield on the TSX today!

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 no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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