When markets are volatile and headlines are noisy, the smartest move an investor can make is to focus on quality, and dividend stocks are one of the best places to start. If you’ve got $1,000 to put to work today, your goal shouldn’t be to chase the highest yield or try to time the market. It should be to buy shares of the best dividend stocks on the market.
The best stocks to buy are companies you can trust to grow, generate consistent cash flow, and reward you steadily over the years.
Dividend investing works because it’s simple and proven. But it works best when you focus on the right companies, those in strong industries with long-term tailwinds, disciplined management teams, and a track record of creating value for shareholders.
These aren’t just stocks that pay dividends. They’re stocks that have the financial strength to continue paying and ideally raising those dividends over time.
Furthermore, when you’re starting with a smaller amount of capital, like $1,000, picking the right names is crucial. You want the kind of stocks you can hold for the next decade without having to check on them every week.
So, with that in mind, here are some of the smartest dividend stocks to buy now and hold for years to come.
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Two top dividend growth stocks to buy now
When it comes to finding high-quality dividend stocks that you can buy today and hold for years to come, there’s no question that two of the best are Brookfield Renewable Partners (TSX: BEP.UN) and Granite REIT (TSX: GRT.UN).
Both stocks have long track records of strong performance, reliable business operations, significant long-term growth potential and the ability to generate massive cash flow.
For example, Brookfield Renewable is one of the largest and best-run companies in the green energy industry. And there’s no question that green energy has decades of growth potential as the world shifts to cleaner energy and the demand for energy only continues to grow every year.
Meanwhile, Granite is a well-run industrial REIT that has massive growth potential as the industry continues to see increasing demand.
As economic conditions change, industries continue to adapt, and e-commerce continues to grow in popularity, the demand for warehouse space and distribution centres continues to grow rapidly.
This gives Granite a tonne of potential to continue growing rapidly both in the near term and over the long haul.
Plus, in addition to the significant growth potential both of these stocks have within their industries, they have already proven to be some of the best dividend stocks to buy on the TSX.
For example, Brookfield has a dividend growth streak of 13 years and currently offers a yield of more than 5.9%. Meanwhile, Granite has a dividend growth streak of 12 years and offers a current yield of just over 4.9%.
So, if you’re looking for high-quality Canadian dividend stocks to buy now, there’s no question these are two of the best.
A top high-yield stock
In addition to Brookfield Renewable and Granite REIT, another of the best dividend stocks to buy right now is Telus (TSX: T), a high-quality telecom stock.
Telus is an ideal dividend stock because it operates in an essential industry, has a dominant position, and constantly generates billions in cash flow.
In fact, in recent years, Telus hasn’t just been increasing its dividend as its cash flow has increased, it has actually been increasing the dividend twice a year.
In fact, in the last five years, Telus’ dividend has increased from just $1.17 per share annually to $1.67 per share annually, an increase of roughly 43% in just half a decade.
This goes to show how impressive Telus’ performance has been. Plus, with the stock offering a yield of more than 7.5% today, there’s no question it’s one of the best dividend stocks to buy now and hold for the long haul.
