Investing in dividend stocks is something that I think all Canadians should be doing. Yes, you read that right. I think all Canadians, regardless of age, goals, or appetite for risk, should be buying dividend stocks. There are a few reasons for this, but the biggest is that dividend stocks could help you supplement your income or even replace it, allowing you to live the life you want without having to focus so much on your job.
In this article, I’ll discuss three “forever” stocks that could help you build your wealth.
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This is a very important stock to know
It should go without saying that Fortis (TSX: FTS) is one of the best dividend stocks in Canada and one that every investor should at least consider buying. This stock is a bona fide Canadian Dividend Aristocrat. For those that don’t know what that means, consider Dividend Aristocrats to be the elite among dividend payers. They are companies that have managed to increase dividend distributions for at least five consecutive years.
Fortis has managed to blow that minimum requirement out of the water. The company has been raising its dividend in each of the past 50 years. That gives it the second-longest active dividend-growth streak in Canada. Fortis has already announced its plans to continue raising its dividend through to 2028. If you’re looking for a stock that could continue to raise its dividend for the foreseeable future, then Fortis is one to consider.
A company that has been the backbone of our economy
Canada would not be the same country had it not been for the railway industry. Without it, it would’ve been impossible to build this country from coast to coast. Simply put, there isn’t a viable way to transport large quantities of goods over long distances if not via rail. When it comes to railway companies in Canada, Canadian National Railway (TSX: CNR) stands out as a clear leader.
This company operates nearly 33,000 kilometres of track. Its rail network stretches from British Columbia to Nova Scotia, making it one of the most recognizable companies in the country. Like Fortis, Canadian National Railway is listed as a Canadian Dividend Aristocrat. It’s one of a handful of companies to currently hold dividend-growth streaks of at least two decades. Until an alternative comes around, to replace rail transport, I believe Canadian National could be great to hold in a portfolio.
One of the best dividend payers around
Finally, Canadians should consider investing in Bank of Nova Scotia (TSX: BNS). This is one of the Big Five Canadian banks. In my opinion, that group of companies may be the most secure in the country. That’s because the Canadian banking industry is so highly regulated. That makes it difficult for new competitors to enter the market and for smaller competitors to overtake their larger peers.
Although Bank of Nova Scotia doesn’t boast the same kind of dividend-growth streak as the other stocks discussed in this article, I think it’s still a great one to consider. This company first started paying shareholders a dividend in July of 1833. Since then, it has never missed a dividend payment. That represents 190 years of continued dividend payments. If that’s not a stable and reliable dividend, then I don’t know what is.
