Building a dividend portfolio can significantly boost your long-term financial growth, especially with the power of compound returns. The TSX boasts many solid dividend-paying stocks that have historically yielded annual returns of 3-5%. By reinvesting dividends, Canadians can exponentially grow their portfolios over time, making dividend stocks a reliable tool for wealth accumulation. But what if you could get both dividends and superior growth? Today, let’s look at some stocks that investors can pick up and hold for at least the next decade.
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Parkland
Parkland (TSX: PKI) on the TSX is a great investment for the next decade, especially for investors seeking a combination of growth and stability. With a market cap of $6.2 billion and a solid forward price/earnings (P/E) ratio of 9.9, PKI has demonstrated its resilience. Despite some recent challenges, the company remains committed to its long-term growth strategy, particularly in expanding its fuel and convenience store operations. Parkland managed to achieve a 3.9% forward dividend yield at writing, making it an attractive option for income-seeking investors.
PKI’s earnings momentum also reflects its strong performance over the years. Even with a slight drop in revenue growth, Parkland has shown an ability to maintain profitability with a solid operating margin of 3.2%. As management noted, “We are focused on disciplined growth and delivering value to our shareholders while expanding our network.” This focus suggests Parkland’s potential to offer returns over the long term, especially through its strategic acquisitions and cost-cutting initiatives.
Primaris REIT
Primaris Real Estate Investment Trust (TSX: PMZ.UN) is a strong candidate for the next decade, mainly due to its strong earnings growth and reliable dividend payouts. With a market cap of $1.5 billion, Primaris has displayed consistent revenue growth, along with a 25.1% increase year-over-year, and an impressive operating margin of 51.8%. Management continues to steer the company towards stronger financial health by leveraging the trust’s high-quality retail assets.
The forward dividend yield of 5.6% is a key attraction for PMZ.UN investors at writing. This payout is well-supported by the company’s revenue growth and high cash flow, thus ensuring dividends are both sustainable and rewarding for long-term holders. As the retail sector stabilizes, Primaris is well-positioned for steady returns over the next decade.
ARC
Similarly, ARC Resources (TSX: ARX) stands out as a safe investment on the TSX in the energy sector. With a market cap of $13.3 billion and a forward P/E of just 7, ARC has maintained strong earnings momentum. While quarterly earnings have dipped slightly, ARC’s diversified portfolio of oil and natural gas assets makes it resilient in fluctuating markets.
ARC’s solid forward annual dividend rate of $0.68, or 3.1% yield, at writing is another compelling reason for long-term investment. With strong cash flow of $2.5 billion, ARC Resources is able to deliver consistent returns. And management remains confident about the company’s prospects, saying, “We are well-positioned to continue creating value through disciplined capital allocation.”
Foolish takeaway
Building a long-term portfolio of stocks like Parkland, Primaris REIT, and ARC Resources offers Canadian investors a great balance of stability and growth, especially when you add in solid dividend yields. With careful attention to sectors like real estate, retail, and energy, these companies stand out as strong investments. Whether you’re looking for reliable cash flow or growth potential, these stocks offer the opportunity for consistent returns, thereby making them great options for the next decade and beyond.
