Do you ever wish you could go back a decade in time and buy a stock before it took off? Fortunately, you don’t need to be a fortune teller to pick these magnificent TSX dividend stocks.
And yes, you will regret not buying these magnificent dividend stocks a decade from now.
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Do you want to be a landlord?
Buying a rental property used to be the tried-and-true way to establish a passive income stream. Unfortunately, stubborn interest rates and home prices in the stratosphere have priced most investors out of the market.
An interesting alternative to consider is investing in a REIT like RioCan Real Estate (TSX: REI.UN). RioCan is one of the largest REITs in Canada, with an increasing mix of mixed-use residential properties.
Those properties comprise residential towers sitting atop several floors of retail. The properties are also located in high-traffic metro areas making them ideal for commuters and shoppers alike.
For prospective investors, the advantages here are numerous. They include the overall lower risk of investing in what are hundreds of units across multiple properties instead of a single rental property.
That investment also comes without a mortgage, property taxes, or tenant issues.
Perhaps best of all, investors can collect a monthly income thanks to the juicy distribution. As of the time of writing, RioCan pays out a tasty 6.1% yield making it one of the best yields on the market and one of the magnificent dividend stocks to own today.
Keep in mind that investors who aren’t ready to draw on that income yet can invest it, allowing that nest egg to grow on autopilot until needed. That fact alone makes RioCan one of the magnificent dividend stocks to own today.
Buy this bank while it recovers
Canada’s big banks are great investments. They provide reliable revenue, strong growth prospects in foreign markets, and juicy yields that continue to grow by the year.
Toronto-Dominion Bank (TSX: TD) represents a unique opportunity for investors right now. The bank stock is trading relatively flat over the trailing 12-month period considering the troubles TD had last year.
In short, TD’s issues with U.S. regulators led to an asset cap and a hefty fine for not doing enough to stem money laundering in the U.S. This may hinder the bank’s growth over the shorter term, but it also represents an opportunity for long-term investors to buy TD at a discount.
TD’s branch presence in the U.S. is larger than in Canada, stretching from Maine to Florida. To put it another way, TD’s focus on growth in the U.S. will continue following its currently mandated hiatus.
Until then, prospective investors awaiting that recovery will be scooping up that juicy 5.1% dividend from what is one of the magnificent dividend stocks to buy now.
Will you buy these magnificent dividend stocks?
No stock, even the most defensive, is not without some risk. Fortunately, both stocks mentioned above provide some defensive appeal as well as a juicy yield that can provide growth and income for a decade and beyond.
In my opinion, both of the above stocks should be core holdings in any well-diversified portfolio.
