Investing in high-quality Canadian dividend stocks can help you generate worry-free income for decades. Thus, investors looking to buy and hold reliable TSX stocks for the next 20 years could consider adding these five stocks now. These companies have solid fundamentals, making them well-positioned to deliver consistent dividends for years.
Source: Getty Images
Fortis stock
Fortis (TSX: FTS) is a no-brainer TSX stock to buy and hold for decades. The electric utility giant’s transmission and distribution assets shield it from risks related to power generation and fluctuating commodity prices. Plus, its rate-regulated business model ensures steady cash flow, allowing it to maintain reliable dividend payouts regardless of market conditions.
With its low-risk earnings and consistent growth, Fortis has increased its dividend for an impressive 51 consecutive years. The company’s multi-billion-dollar capital projects will boost its rate base at a 6.5% compound annual growth rate (CAGR) through 2029. This expansion will drive earnings and cash flow growth, enabling Fortis to continue raising its dividend at a CAGR of 4-6% in the coming years.
Enbridge stock
Enbridge (TSX: ENB) is another reliable stock for worry-free dividend income that you can buy and hold for the next 20 years. The integrated energy infrastructure company’s diversified assets, high system utilization, and highly contracted cash flow structure enable it to consistently pay and increase its dividend.
Thanks to its resilient earnings base, Enbridge hiked its dividend for 30 consecutive years. Its strategic investments in traditional and low-carbon energy projects and low-risk commercial agreements position it well to deliver solid distributable cash flow per share, which will drive future dividend payouts. While Enbridge stock has steady payouts, it also offers a well-protected yield of 5.9%, near the current market price.
Canadian Natural Resources stock
Along with Enbridge, Canadian Natural Resources (TSX: CNQ) is another top dividend stock from the energy sector. The oil and gas producer’s diversified production mix and long-life, low-decline assets enable it to generate solid cash flows and support its dividend payments. Moreover, higher production from its zero-decline, high-value synthetic crude oil operations, and low reserve replacement costs ensure steady cash flows and drive its payouts.
The energy company has raised its dividend for 25 consecutive years at a CAGR of 21%. Looking ahead, its high-quality assets and vast inventory of low-capital projects augur well for long-term growth. Moreover, its extensive undeveloped land will support large-scale drilling programs, driving its growth and profitability in the coming years.
Bank of Montreal stock
Top Canadian banks are popular for their stellar dividend payment history, making them dependable investments for income investors. Bank of Montreal (TSX: BMO) stands out among the leading Canadian financial giants with an impressive record of 196 consecutive years of dividend payouts. Its diversified revenue streams, ability to expand loans and deposits, strong credit quality, and operating efficiency drive its earnings and dividend payouts.
Over the past 15 years, Bank of Montreal has increased its dividend at a CAGR of 5.4%. The bank is well-positioned to continue raising its dividends. BMO’s focus on improving operational efficiency and reducing non-interest expenses strengthens its potential for long-term earnings growth. Additionally, BMO’s strong balance sheet provides a solid foundation for future expansion, further supporting its ability to reward shareholders with higher dividend payouts.
Canadian Utilities stock
Canadian Utilities (TSX: CU) is a must-have stock for investors seeking dependable sources of income that grow over time. Thanks to its resilient business model backed by regulated assets and low-risk earnings, the company has consistently paid and increased its dividend. It holds the record for the longest dividend-growth streak among all publicly traded Canadian stocks, having raised its dividend for 52 consecutive years.
Canadian Utilities’s high-quality assets will generate steady, low-risk earnings, ensuring continued dividend growth. The company’s strategic investments in expanding its regulated asset base will drive its earnings, supporting higher payouts. Additionally, its contracted infrastructure assets will likely accelerate growth and help maintain and increase dividends over time.
