Dividend stocks are some of the best investments investors can own for the long haul because the highest-quality dividend payers are often the most reliable businesses generating consistent cash flow year after year.
When you buy a high-quality dividend stock, you’re not just boosting your income; you’re buying a business that has proven it can survive different economic environments, manage capital responsibly, and consistently return cash to shareholders.
That’s why dividend stocks can play such an important role in long-term portfolios, especially when those dividends are reliable and steadily growing.
Over the years, reinvested dividends can significantly boost total returns, while the income itself helps smooth out volatility when markets get choppy.
That’s why there are certain dividend stocks that almost every investor should own. These are companies that are so dominant in their industries that they can be bought and held for years with confidence, helping to form the foundation of long-term portfolios.
So, with that in mind, here are five of the best dividend stocks in Canada that everyone should consider owning.
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Why everyone should own bank stocks
When it comes to reliable companies that you can buy and hold for the long haul, Canadian bank stocks are some of the best of the best. That’s why everyone should have exposure to the sector in some form.
Canadian bank stocks benefit from scale, regulation that limits competition, and business models that generate consistent earnings through different economic cycles, all of which make them some of the best dividend stocks to buy.
And while there are a handful of high-quality bank stocks to choose between, another option investors have to gain exposure is through the BMO Equal Weight Banks Index ETF (TSX:ZEB). The ZEB gives investors equal-weight exposure to Canada’s largest banks, spreading risk across the entire sector rather than relying on one name.
That diversification matters because each bank performs differently depending on interest rates, credit conditions, and capital markets activity. Over time, though, the sector as a whole has proven it can grow earnings, pay reliable dividends, and increase those dividends consistently.
That’s why bank stocks, and especially diversified exposure through an ETF like the ZEB ETF, are some of the best bank stocks every Canadian should own.
High-quality REITs every long-term investor should consider
In addition to reliable bank stocks, high-quality REITs are also some of the best dividend stocks investors can own since they provide direct exposure to a core asset class.
Furthermore, these high-quality REITs allow investors to collect dividends and boost their income in the near term while benefiting from long-term property appreciation and rent increases.
And right now, two of the best REITs for long-term investors are Granite REIT (TSX:GRT.UN) and Canadian Apartment Properties REIT (TSX:CAR.UN).
Granite REIT is a high-quality industrial REIT with exposure to logistics, warehousing, and manufacturing facilities across North America and Europe. Its tenants are strong, its balance sheet is conservative, and demand for industrial space continues to benefit from long-term trends like e-commerce and supply chain optimization.
Meanwhile, CAPREIT is one of the best ways to gain exposure to residential real estate. It owns a massive portfolio of apartments across Canada. Furthermore, with the stock trading well off its highs, it looks unusually cheap, making now an attractive time to buy the high-quality residential REIT.
Two blue-chip dividend stocks to hold for decades
Every long-term portfolio needs a foundation of blue-chip stocks. These are large, established businesses with durable operations, strong balance sheets, and a long history of generating cash flow and paying dividends.
And two of the best blue-chip dividend stocks that every investor should own are Nutrien (TSX:NTR) and BCE (TSX:BCE).
Nutrien is one of the largest fertilizer producers in the world and plays a critical role in global food production. Demand for nutrients is driven by population growth and food security, which makes Nutrien incredibly defensive and gives it significant pricing power over time.
BCE, on the other hand, is a classic Canadian telecom stock. It owns long-life infrastructure assets, generates recurring revenue, and pays one of the most reliable dividends on the TSX.
It’s that predictability and reliability that make BCE one of the best dividend stocks in Canada, a stock everyone should consider owning.
