3 of the Best Canadian Dividend Stocks I Plan to Hold Forever

Passive income can be easy and safe with these three dividend stocks I’ll be holding onto for life, and then some!

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Canadians got a surprise this week as inflation was found to actually have fallen in February after rising to 2.9% in January. Instead of reaching the predicted 3.1%, inflation fell by 2.8%. Perhaps we’re on the path to finally being able to cut the interest rate in the relatively near future.

Perhaps some investors have some cash on hand to invest. Yet that shouldn’t mean you change your overall strategy. When it comes to investing, the best strategy is investing for the long run. This allows you to invest over time at a consistent rate, putting cash into strong investments again and gaining more income, both through returns and dividends.

This is why today I’m going to focus on three dividend stocks I hold and will continue to hold for the foreseeable future. So, let’s get into these diverse investments that provide long-term income.

A REIT

If you’re looking for dividend income, then it’s likely you’ve already considered picking up some real estate investment trusts (REITs). REITs are some of the best options if you want passive income as 90% of net earnings must be paid out to shareholders. And that’s usually in the form of dividends.

One company I continue to follow is Granite REIT (TSX:GRT.UN), which is a solid long-term opportunity. Granite stock is a perfect dividend stock for passive income as it invests in properties in the industrial sector. Because of the exposure it has to the growth needed in warehouse and e-commerce properties, this is a company that’s likely to only do better over time.

For now, Granite stock trades with a strong 4.44% dividend yield, which is higher than its five-year average of 4.31%. It continues to also have a strong bottom line, with only 58% of equity needed to cover all debts. Yet, with shares down 10% in the last year, it looks like a good deal, especially with shares up 17% since the October market bottom. So, this is certainly a passive-income stock that offers a deal.

A growing dividend stock

It can be quite hard to find a dividend stock that also provides growth, but they do exist. What investors will want to consider are fields doing well, with solid foundations and stellar future outlooks. That can sound like a lot, but you can find it all through goeasy (TSX:GSY).

This non-prime lender has expanded further and further over the last few years, despite raising interest rates and inflation. Instead, goeasy stock has managed to bring in record bookings, with loan originations growing by 12% during the full year of 2023. What’s more, the company believes even with a potential recession, it should continue to perform well — especially when Canadians are able to afford taking out loans once more.

As of now, goeasy stock offers a strong 2.88% dividend yield, which is far higher than its 2.36% average over the last five years. It also holds a strong payout ratio of just 26.52% as of writing, with shares up a whopping 46% in the last year. Yet it continues to trade at just 11.22 times earnings, making a valuable buy with more room to grow.

A monthly income ETF

Finally, to really get in on diversification, you’ll want to consider a dividend provider that provides global exposure. For that, get out of Canada with so much invested here already. Consider instead Vanguard FTSE Global All Cap ex Canada Index ETF (TSX:VXC).

This exchange-traded fund invests around the world, providing exposure to the global equity market without investments in Canada. It includes developed markets such as Japan and Europe as well as emerging markets like China and India. It’s also low-cost, with a low management expense ratio and a yield of 1.58%. And over the last year alone, shares are up a whopping 22%, making this a strong consideration for long-term investors.

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 positions in Goeasy and Vanguard Ftse Global All Cap Ex Canada Index ETF. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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