Finding the perfect mix of dividend stocks to buy and hold can make the difference between retiring with a comfortable income or working well into your golden years.
Fortunately, there are several great dividend stocks to buy that can help provide that juicy income.
Here’s a look at four options to consider now, even if you only have $2,000.
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The defensive titan for your portfolio
The first dividend stock to buy and hold is Fortis (TSX: FTS). Fortis is one of the largest utility stocks on the continent. The company boasts an expansive portfolio of facilities in Canada, the U.S., and the Caribbean.
Those facilities provide Fortis with a recurring and stable source of revenue, which, in turn, allows Fortis to invest in growth and pay a handsome dividend.
Turning to dividends, Fortis offers investors a quarterly dividend that currently pays out a yield of 3.85%. Furthermore, Fortis is one of only two companies in Canada that has provided investors with over 50 consecutive years of dividend increases.
That predictable income and defensive appeal make Fortis one of the best dividend stocks to buy and hold forever.
Energy and growth are a bonus to this crazy yield
Another one of the great dividend stocks to buy and hold forever is Enbridge (TSX: ENB). Enbridge is one of the largest energy infrastructure companies on the planet.
The company is best known for its lucrative pipeline segment, which generates the bulk of its revenue. Few investors may realize, however, that there’s much more to Enbridge than just a pipeline business.
Enbridge also operates a growing renewable energy business. That segment includes nearly 40 facilities located across Europe and North America. Those facilities, which include solar, hydro and wind elements, generate a recurring revenue stream for the company, much like a traditional utility business.
Speaking of utilities, Enbridge also operates the largest natural gas utility business in North America. The segment boasts seven million customers and provides yet another recurring revenue stream for the company.
Those recurring revenue streams provide Enbridge with ample revenue to invest in growth and pay out a very handsome dividend. As of the time of writing, that yield works out to a juicy 6.18% yield.
And much like Fortis, Enbridge has an established cadence of providing annual upticks to that dividend going back decades.
In short, Enbridge is one of the must-have dividend stocks to buy and hold.
Banking on success
It would be nearly impossible to note down the dividend stocks to buy and hold without noting at least one of Canada’s big bank stocks. Canadian Imperial Bank of Commerce (TSX: CM) is a great pick for investors right now.
Apart from its juicy 4.65% yield, CIBC offers investors a few compelling reasons to consider. That includes not only that very sustainable dividend with an impressive record of annual increases but also considerable growth appeal.
That growth appeal comes thanks to efforts by the bank to expand its operations into the U.S., particularly in the growing wealth management market.
Between CIBC’s appetite for growth, stable revenue stream and well-covered dividends, investors will find one of the best dividend stocks to buy and hold for decades.
All aboard the income train
One final option for investors looking at dividend stocks to buy and hold is Canadian National Railway (TSX: CNR). CNR is one of the largest railways in North America, connecting three coastlines to warehouses, factories and ports across the continent.
CNR hauls massive amounts of goods, finished products and raw materials across its network. In total, the railway transports over $200 billion worth of goods each year.
Those goods can be anything from raw materials and chemicals to precious metals, crude, and automotive components. As a result, CNR provides a necessary function for the entire continental economy, making it a top defensive pick.
Turning to dividends, the railway pays out a handsome 2.47% yield with nearly three decades of consecutive annual increases.
The dividend stocks to buy and hold
All stocks, even the most defensive, carry some risk. Fortunately, the stocks mentioned above provide considerable defensive appeal.
In my opinion, one or all of the above should be part of any larger, well-diversified portfolio.
