It’s no secret that one of the best ways to build long-term wealth is by investing in high-quality dividend stocks. Not only do these stocks provide passive income, but they also tend to be more stable and reliable compared to growth stocks, making them ideal investments to buy and hold forever.
And while many stocks pay dividends, only a handful can consistently grow those payouts year after year, regardless of what’s happening in the economy. That’s why stocks that have increased their dividends for at least five straight years are some of the best long-term investments you can make.
There’s no question that uncertainty is elevated right now. Interest rates are still high, inflation has been persistent, and new tariffs have created concerns about trade and economic growth. However, the best dividend stocks have proven time and again that they can weather short-term volatility and continue growing over the long run.
So, if you’re looking for top-tier dividend stocks that can withstand these short-term economic headwinds and continue compounding your wealth, here are three you can’t afford to ignore.
One of the best Canadian dividend stocks to buy and hold for the long haul
When it comes to finding reliable dividend stocks to buy and hold for years, few stocks can match Fortis (TSX:FTS). As one of the largest regulated utilities in North America, Fortis generates steady, predictable cash flow and has been one of the safest dividend stocks to own for decades.
Fortis supplies electricity and natural gas to 3.5 million customers across Canada, the U.S., and the Caribbean. And because utilities provide essential services, demand remains stable no matter what’s happening in the economy. Whether inflation is high, interest rates are rising, or tariffs are impacting certain sectors, Fortis’ revenue is incredibly resilient.
However, what really shows why Fortis is a must-own dividend stock is its impressive dividend growth streak. The company has increased its dividend for a whopping 50 straight years, the second-longest streak in Canada.
And right now, Fortis is offering investors a yield of just over 3.8%. So if you’re looking for high-quality dividend stocks to buy now, Fortis should certainly be at the top of your watch list.
A massive $110 billion TSX stock
While Fortis is a classic defensive stock, Thomson Reuters (TSX:TRI) is another high-quality dividend stock to consider that offers a strong mix of both income and growth.
The company is a global leader in business information and data analytics that generates steady recurring revenue from subscription-based services. This gives Thomson Reuters a predictable revenue stream, making it an ideal stock to own in any economic environment.
Furthermore, the company has been expanding aggressively into AI and automation, helping to drive future growth while maintaining strong profit margins.
In addition, just like Fortis, Thomson Reuters also has a long and consistent streak of annual dividend increases that’s lasted for an impressive 32 straight years.
Therefore, although it offers a much lower yield of just under 1.4%, it also offers more long-term growth potential than Fortis.
One of the best high-yield dividend stocks in Canada
While Thomson Reuters is one of the best TSX stocks to buy and hold for the long haul, it may not be the right pick for investors looking to generate more passive income in their portfolio.
If that’s the case, you may want to consider Enbridge (TSX:ENB) and its current dividend yield of more than 5.9%.
Enbridge is a massive $138 billion energy infrastructure company that transports over 30% of the crude oil produced in North America and 20% of the natural gas consumed in the U.S., among many other operations.
Therefore, because of its size and the essential services that it provides, Enbridge is one of the most important companies in the North American economy.
Furthermore, since it also generates billions in cash flow each year Enbridge is also one of the best and most reliable dividend stocks you can buy for the long haul.
Therefore, it’s no surprise that not only does Enbridge offer an incredible yield that’s just shy of 6%, but like Fortis and Thomson Reuters, it also has a lengthy streak of consistent annual dividend increases that’s lasted for three straight decades.
