If you’re more concerned about the next two decades, rather than what’s to happen in the next two years, you might have what it takes to buy into recent market weakness. It’s never easy to buy when others sell, but if you’re looking to get better prices and the same long-term trajectory, the current climate, I think, isn’t one that should scare away true long-term thinkers.
In this piece, I’ll share two of my favourite dividend stocks, which, I think, are worth hanging onto on a semi-permanent basis. Whether it’s for the next 20 years or a while longer, I do think the following passive income plays are great bets before, during, and even after retirement. As the dividend hikes add up, the following names really do stand out as best held for extremely extended periods of time. And their dividends are what make them worth owning rather than trading.
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TD Bank
Let’s start with a Canadian bank stock. TD Bank (TSX: TD) stands out as one of the cheapest right here, and for that reason, I view it as the better bank for your buck going into April. The stock is down more than 5% from its high on no real company-specific pressures. I attribute the selling to broader market fears as well as a breather after the big bank’s past-year rally.
Looking ahead, I think it won’t take much for TD Bank stock to get back on the upward track. Shares go for 10.3 times trailing price-to-earnings (P/E), making its sticker price more compelling versus the peer group. While “asset caps” in the U.S. could be a weight on growth, I’d argue that the valuation more than makes up for this.
The real long-term value, I find, comes from the bank’s tech focus (cost savings and improved retail experience) and shareholder-friendly moves. Between stock buybacks and dividend raises, TD is a name to stay with for decades at a time. And given the growing payout, you probably won’t want to sell, even if there are gains to book. The dividend makes TD a core staple to just stash away and forget.
Agnico Eagle Mines
Agnico Eagle Mines (TSX: AEM) and the rest of the gold miners were flying high until gold suddenly turned a corner amid the war in Iran. The stock is down 27% from its peak, and I’d view that more as a chance to buy rather than a reason to sell, especially since volatility was pretty much an expectation for gold, given the magnitude of last year’s hot run. As the correction exhausts, I suspect AEM stock will get back to winning.
Even if gold stays stuck for a while, Agnico Eagle is poised to enjoy a cash flow surge. And much of that, I imagine, will go back into the pockets of investors. Gold is the safe haven that’s not looking all too safe these days, and that’s why I’d look to go against the grain for a long-term position, even if it means looking wrong for the rest of the year.
The yield sits at 1%, which is decent; it’s the dividend growth potential that’s the main attraction, especially if you’re looking for a bountiful way to bet on the lowly correlated store of value that is gold.
