3 Safe Dividend Stocks to Secure Your Next Decade

Three dividend stocks are ideal long-term holdings if you want financial stability in the future.

| More on:
Growing plant shoots on coins

Image source: Getty Images

Dividend investing for regular investors isn’t only about growing wealth or making a fortune. It’s a strategic approach to meeting long-term financial goals like retirement. However, achieving financial stability in the future depends mainly on stock choices.

The National Bank of Canada (TSX:NA), TELUS (TSX:T), and Fortis (TSX:FTS) don’t pay the highest dividends, but they are safe choices. All three companies are long-term winners for having endured countless economic downturns.

A-rated bank

National Bank was born in 1859 and is presently Canada’s sixth-largest bank. This $34.7 billion lender focuses on the domestic market, with a stronghold in Quebec. Outside Canada, the A-rated bank owns 90% of ABA Bank, one of Cambodia’s premier banking institutions.

Besides the favourable environment, Canada’s banking sector, especially the Big Six, is known to be a bedrock of stability. In fiscal 2023, net income declined 1% year over year to $3.3 billion due to higher provisions for credit losses. Nonetheless, the bank increased its quarterly dividend by 3.9%. NA is optimistic for the next fiscal year.

“Through strong execution, organic growth, and tight expense management, we delivered solid financial results, generated an excellent return on equity, and maintained robust capital levels in 2023,” said Laurent Ferreira, NA’s President and CEO. If you invest today ($102.60 per share), the dividend yield is 4.14%.

Dividend program

The key sign to invest in Canada’s second-largest telecommunications firm is its dividend aristocrat status. TELUS has raised its dividend for 19 consecutive years. Also, the company’s dividend program targets semi-annual dividend increases of 7% to 10% through year-end 2025. At only $23.71 per share, the current yield is 6.36%.

Its President and CEO, Darren Entwistle, said TELUS achieved strong financial and operational results in 2023, notwithstanding a highly competitive industry, a challenging macroeconomic landscape, and a dynamic regulatory environment. According to its CFO, Doug French, the solid operational and financial results in Q4 2023 were due to the consistent focus on profitable customer growth and cost efficiency.

In the three months ending December 31, 2023, net income rose 17% to $310 million versus Q4 2022. The 126,000 net additions in Mobile Phone were the best fourth quarter since 2011, while the 1.26 million mobility and fixed customer additions in 2023 are new highs.

New ‘king’ on the block

Fortis is Canada’s second dividend king. The dividend increase in 2023 marks 50 consecutive years of annual dividend increases. Because of this incredible feat, your money is safe with this $26 billion highly regulated electric and gas utility company. At $53.04 per share, the dividend offer is 4.49%.

The best assurance to invest in FTS came from its President and CEO, David Hutchens. “We remain focused on extending this track record as we execute our $25 billion five-year capital plan in support of our annual dividend growth guidance of 4-6% through 2028,” said Hutchens.

Stocks for keeps

National Bank of Canada, TELUS, and Fortis are among the safest dividend stocks you can hold for years. You might even keep these stocks and never sell them at all.

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 Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.

More on Dividend Stocks

hand using ATM
Dividend Stocks

Should Bank of Nova Scotia or Enbridge Stock Be on Your Buy List Today?

These TSX dividend stocks trade way below their 2022 highs. Is one now undervalued?

Read more »

A meter measures energy use.
Dividend Stocks

Here’s Why Canadian Utilities Is a No-Brainer Dividend Stock

Canadian Utilities stock is down 23% in the last year. Even if it wasn’t down, it is a dividend stock…

Read more »

edit Business accounting concept, Business man using calculator with computer laptop, budget and loan paper in office.
Dividend Stocks

Got $5,000? Buy and Hold These 3 Value Stocks for Years

These essential and valuable value stocks are the perfect addition to any portfolio, especially if you have $5,000 you want…

Read more »

Growing plant shoots on coins
Dividend Stocks

3 Magnificent Ultra-High-Yield Dividend Stocks That Are Screaming Buys in April

High yield stocks like BCE (TSX:BCE) can add a lot of income to your portfolio.

Read more »

grow money, wealth build
Dividend Stocks

1 Growth Stock Down 24% to Buy Right Now

With this impressive growth stock trading more than 20% off its high, it's the perfect stock to buy right now…

Read more »

Dividend Stocks

What Should Investors Watch in Aecon Stock’s Earnings Report?

Aecon (TSX:ARE) stock has earnings coming out this week, and after disappointing fourth-quarter results, this is what investors should watch.

Read more »

Freight Train
Dividend Stocks

CNR Stock: Can the Top Stock Keep it Up?

CNR (TSX:CNR) stock has had a pretty crazy last few years, but after a strong fourth quarter, can the top…

Read more »

Hand arranging wood block stacking as step stair with arrow up.
Dividend Stocks

3 Stocks Ready for Dividend Hikes in 2024

These top TSX dividend stocks should boost their distributions this year.

Read more »