New investors often struggle with finding which stocks to invest in that they can buy and hold forever. Fortunately, there’s no shortage of great options to buy right now, including some stellar dividend stocks.
Here’s a look at four dividend stocks you can buy and hold forever.
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Big bank; big dividend
Canada’s big bank stocks are superb options for investors to buy and hold forever. That’s because they boast a reliable domestic segment that generates a recurring revenue stream balanced with a growing international presence.
Both segments collectively help fuel growth and a juicy dividend.
Among the big banks, Bank of Montreal (TSX: BMO) is the big bank stock to buy and hold forever. Apart from its impressive domestic footprint, BMO boasts a massive presence in the U.S. market.
That presence includes operations in 32 state markets, accounting for billions in deposits and millions of customers.
Turning to dividends, BMO has been paying dividends without fail for nearly two centuries. As of the time of writing, that yield is 4.62%. The bank also has an established cadence of annual upticks to that yield.
Given the juicy yield, impressive international footprint and growing dividend, BMO is a solid option to buy and hold forever.
An alternative to a rental property mortgage
Buying a rental property is a tried and true way of establishing an additional income stream. It’s also something that’s becoming increasingly difficult between stubborn interest rates and home prices outside of reality.
That’s where investing in a real estate investment trust (REIT) like RioCan Real Estate (TSX: REI.UN) can be an intriguing option. RioCan is one of the largest REITs in Canada, with a portfolio of increasingly mixed-use residential properties.
Those properties represent a unique solution for would-be landlords and tenants alike. Located in high-traffic transit corridors in Canada’s metro areas, the properties are a high-demand alternative to owning a rental property.
In short, RioCan is a lower-risk option that comes without a mortgage while still providing a source of monthly income. As of the time of writing, RioCan’s monthly distribution carries a yield of 6.03%.
For an initial $2,000 outlay, investors can expect to generate nearly $120 in dividends. That’s not enough to retire on, but it’s enough to generate several shares through reinvestments.
That fact alone makes RioCan a stock to buy and hold forever.
Generate a defensive, growing income stream
Utility stocks are another option for investors looking for a stock to buy and hold forever. That’s because they generate a stable revenue stream backed by long-term, regulated contracts.
It’s that recurring revenue stream that allows utilities to invest in growth and pay out a safe dividend. And when it comes to utility stocks, Canadian Utilities (TSX: CU) is the best option for long-term investors right now.
Apart from that well-covered quarterly dividend with a yield of 5.27%, Canadian Utilities has another advantage. Canadian Utilities is one of just two stocks on the market with the label of Dividend King.
This means the company has provided investors with more than 50 consecutive years of annual dividend increases. Specifically, Canadian Utilities has increased that dividend for 52 years and plans to continue that cadence.
That fact alone makes this a must-have stock to buy and hold forever.
A telecom you buy and hold forever
Telecoms represent one final area for investors to consider right now. Canada’s big telecom stocks have dropped during the high-interest environment we’ve seen in recent years, making them unique buying opportunities.
Telus (TSX: T) is a fine stock to buy and hold forever. Telus provides subscription-based services that include wireless, wireline, TV and internet segments. This makes it an ideal investment that can provide a reliable (and growing) revenue stream that leaves room for growth and income.
Speaking of income, Telus continues to impress. As of the time of writing, Telus boasts an insane 8.17% yield, making it one of the best-paying dividends on the market.
Furthermore, Telus has provided investors with annual or better increases for more than two decades. In fact, Telus has provided investors with over a dozen increases to that dividend in the past decade alone.
In other words, Telus, like the other stocks mentioned above, is a great stock to buy and hold forever for any portfolio.
