Buy-and-forget stocks are some of the best all-around performers that investors can add to their portfolios. And at the core of every portfolio are some rock-solid dividend payers that can keep feeding the income growth investors crave.
Here’s a look at a trio of those rock-solid dividend payers for your portfolio.
Let’s start with the obvious pick
It would be hard not to mention Enbridge (TSX: ENB) as a key member of any list of rock-solid dividend payers. The energy infrastructure behemoth has its tentacles firmly embedded in multiple parts of the market.
The main driver for Enbridge remains its lucrative pipeline business. That segment hauls a whopping one-third of all North American-produced crude, as well as one-fifth of the natural gas needs of the U.S. market.
If that was all that Enbridge did, it would still be a solid investment option. But Enbridge does far more and offers one of the best dividends on the market.
In short, Enbridge also operates the largest natural gas utility in North America. The company also operates a growing renewable energy business with facilities scattered throughout North America and Europe.
Both are highly defensive, profitable businesses that provide additional revenue streams to complement the already insane pipeline business. And collectively, they help Enbridge pay out one of the best dividends on the market.
As of the time of writing, that dividend works out to a very appetizing 6.88%. For prospective investors, this means that a $5,000 investment will generate just shy of $350. That’s not enough to retire on, but it is enough to start building your portfolio through reinvestments.
Big bank = big income
Another option among the rock-solid dividend payers is Bank of Montreal (TSX: BMO). BMO is the oldest of Canada’s big bank stocks and offers both a stable domestic segment and a growing presence internationally.
That international presence is largely based on BMO’s growth in the U.S. market. BMO completed an acquisition for California-based Bank of the West last year, which propelled itself into position as one of the largest banks in the U.S. with a presence in 32 state markets.
That growing presence helps BMO to continue paying one of the best dividends among the big banks. As of the time of writing, BMO pays out an impressive 5.55%.
Adding to that appeal. BMO has been paying out dividends for a whopping two centuries without fail. The bank also continues to provide investors with juicy annual bumps to that dividend, making it a rock-solid dividend payer for any portfolio.
Look here for a stable income that lasts decades
One final rock-solid dividend payer to consider right now is Fortis (TSX: FTS). Fortis is one of the largest utility stocks in North America, with ten operating regions across Canada, the U.S., and the Caribbean.
One of the reasons why utilities like Fortis are often viewed as great investments is due to their lucrative (and stable) business models. In short, Fortis generates a reliable revenue stream from its huge portfolio of facilities. Those facilities are bound by long-term, regulated contracts, which provide a reliable revenue stream.
That recurring revenue stream allows Fortis to pay out a handsome dividend and invest in growth. As of the time of writing, that dividend is a respectable 3.99%.
But perhaps best of all is Fortis’s tradition of providing annual bumps to that dividend. Fortis has provided investors with a whopping 50 consecutive years of increases, making it one of only two Dividend Kings on the market.
The rock-solid dividend payers for your portfolio
No stock, even the rock-solid dividend payers noted above, is without some risk. Fortunately, the trio above offer some defensive appeal and growth potential in addition to a juicy dividend.
In my opinion, one or all of these stocks should be core holdings in any well-diversified portfolio.
