As many Canadians know, it has been more than three decades since the Blue Jays were last in and won the World Series back in 1993. Over that stretch, while some stocks are still performing well, increasing their dividends and expanding their operations, a lot has changed in the Canadian economy.
Back in 1993, the internet was barely a thing, gas was under 60 cents a litre, and the TSX had fewer than half the listings it does today.
However, even though so much has changed – countless new companies have risen and fallen, entire industries have come and gone, and technology has completely reshaped how we live – some Canadian companies have not only paid a dividend every single year through it all, but they’ve actually increased their dividends the entire time.
So, if you’re looking for high-quality dividend stocks that you can buy and hold with confidence over the long haul, here are two Canadian stocks whose dividend growth streaks have never been broken once over the last 32 years.
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A Canadian stock with a dividend growth streak of 51 years
If you’re looking for high-quality dividend stocks that you can buy and hold with confidence for decades, there’s no question Fortis (TSX: FTS) is one of the best on the TSX.
It’s no secret that utility stocks are some of the safest, most defensive, and most reliable businesses you can buy, and Fortis has proven that for more than half a century.
Because it provides essential services like electricity and natural gas, demand for those services hardly ever fluctuates, no matter what’s happening in the economy. And since these services are essential, the industry is regulated by the governments in the regions where Fortis operates.
That stability means Fortis’ future revenue, cash flow, and earnings are highly predictable year after year.
This makes Fortis the perfect dividend stock. With consistent earnings, it can steadily increase its dividend while still investing in future growth to keep those payouts rising down the line. And that consistent dividend growth is what truly drives long-term compounding.
For example, while Fortis’ dividend growth streak extends to 51 years, even if you had bought Fortis 32 years ago, back in 1993, you would have earned a total return of 3,677% holding the stock until today. That’s a compound annual growth rate of 12% for 32 years.
That’s exactly why finding high-quality and reliable stocks to buy, and then holding them for decades, is the best strategy.
And right now, Fortis is offering a yield of 3.4% and plans to increase its dividend by 4% to 6% annually through 2029.
A utility stock with a 4.6% dividend yield
In addition to Fortis, the only other Canadian stock with a longer dividend growth streak, at 53 years, is Canadian Utilities (TSX: CU).
As I mentioned above, utility stocks are some of the best and most reliable companies to buy and hold for the long haul, and Canadian Utilities is just another example of that.
Just like Fortis, Canadian Utilities provides electricity and natural gas distribution. However, it also operates energy infrastructure and storage solutions across Canada, Australia, and Latin America.
Furthermore, in addition to its low-risk, government-regulated utilities that allow it to be such a reliable dividend stock, Canadian Utilities has also spent years diversifying its operations and continues to invest in new opportunities such as renewable energy.
Plus, in addition to a slightly longer dividend growth streak than Fortis, Canadian Utilities also offers a yield of 4.6% today, which is considerably higher than Fortis’.
So, if you’re looking for a reliable dividend stock with a compelling yield to buy and hold for the long term, Canadian Utilities is certainly one to consider.
