In the short term, many factors, including market volatility or economic fluctuations, might affect the performance of even the most fundamentally sound TSX stocks. However, a long-term investment focus on solid dividend-paying stocks in Canada could be a wise strategy, which has the potential to provide you with regular passive income and capital appreciation over the long run.
If youâre looking for stocks that could become cornerstones of your investment portfolio for years to come, consider these top TSX dividend stocks, known for their durability and consistent performance. In 10 years from now, youâll be glad you chose to invest in these top companies today.
Keyera stock
As the long-term demand outlook for energy products remains strong, particularly in sectors geared toward less carbon-intensive solutions, Keyera (TSX: KEY) could be an attractive investment for the next 10 years. This Calgary-headquartered company owns a diversified portfolio of midstream operations, which are essential for the processing and transportation of natural gas and natural gas liquids. It currently has a market cap of $9 billion as KEY stock trades at $39.04 per share with about 22% year-to-date gains.
At this market price, the company offers a 5.1% annualized dividend yield. In the 10 years between 2013 and 2023, Keyera increased its dividend per share by over 70%, reflecting its commitment to returning value to shareholders and its ability to generate robust cash flows consistently.
In the 12 months (ended in March), Keyeraâs adjusted earnings remained nearly flat on a YoY (year-over-year) basis at $1.56 per share. Nevertheless, its profitability from the liquids infrastructure segment remained strong due to the high demand for fractionation, storage, and condensate services.
As the company continues to maintain financial discipline while focusing on major infrastructure projects like the Trans Mountain Pipeline Expansion, LNG Canada, and growing NGL exports from the West Coast, its financial growth trends could improve in the coming years, which should help its share prices soar.
Magna stock
After losing nearly 24% of its value so far in 2024, Magna International (TSX: MG) also looks like an attractive stock for those seeking long-term growth and stability from a dividend-paying company. This Aurora-headquartered auto parts manufacturer and mobility company has a strong global presence and is a key player in the automotive supply chain.
Magna’s market cap is $17.2 billion, and its stock trades at $59.77 per share. At the current market price, Magna offers a decent 4.3% annualized dividend yield and distributes these dividend payouts every quarter. Interestingly, the companyâs dividend per share has gone up by a solid 188% in the last 10 years.
Although the COVID-19-driven slowdown in automotive sales affected its financial growth, Magnaâs business has shown a strong recovery in the last year. In the last 12 months (ended in March), the companyâs revenue rose nearly 11% YoY to US$43.1 billion, while its adjusted earnings during this period jumped by 37% to $5.37 per share.
Moreover, Magnaâs focus on further diversifying its product portfolio and investing in new technologies and acquisitions gives it the ability to outperform the broader market by a wide margin over the next decade.
