Here Are 2 Canadian Stocks I’d Buy and Never Sell

These two TSX dividend stocks can be excellent holdings if you want to buy and hold income-generating assets you can remain invested in forever.

Key Points
  • Despite a 31% rally from its 52‑week low, rising inflation, slower global growth, and geopolitical tensions make dividend‑paying TSX stocks a go‑to for stability and income.
  • Enbridge (TSX:ENB) is a defensive pick — ~98% regulated/contracted revenue, 70 years of uninterrupted quarterly dividends and 31 years of increases, trading at $71.71 with a 5.41% yield (C$0.97/qtr).
  • Fortis (TSX:FTS) offers utility stability with 50+ years of dividend growth, trading at $77.23 and yielding ~3.31% (C$0.64/qtr), and holding these names in a TFSA lets you collect dividends and capital gains tax‑free.

Considering the fact that the S&P/TSX Composite Index is up by over 31% from its 52-week low, the Canadian economy seems to be doing well on paper. However, the growth in the equity securities market has accompanied rising inflation, slower economic growth worldwide, and persistent geopolitical tensions that paint a bleak picture.

In a market environment as uncertain as this, seasoned investors have fewer options when it comes to investing for stability and attractive returns. Fortunately, the Canadian stock market has no shortage of high-quality stocks with resilient underlying businesses and reliable payouts.

Today, I will discuss two TSX dividend stocks with impeccable dividend streaks that can deliver consistent income and long-term returns to shareholders. Staples in many investment portfolios, these high-quality dividend stocks might be the right holdings to consider for your self-directed investment portfolio.

woman considering the future

Source: Getty Images

Enbridge

Enbridge Inc. (TSX: ENB) is a $156.6 billion market-capitalization diversified energy infrastructure company that boasts a portfolio of revenue-generating assets including renewable energy, natural gas utilities, and midstream operations. Around 98% of the company’s revenue comes from regulated assets and long-term contracts. This means predictable cash flows that do not fluctuate due to changing commodity prices.

The resilient business model lets Enbridge enjoy shielded financial performance during times of economic uncertainties, letting it deliver consistent returns to investors. As a result of its business model, Enbridge stock has rewarded shareholders with quarterly dividends for 70 years without fail, increasing payouts for the last 31 years. As of this writing, Enbridge stock trades for $71.71 per share and pays $0.97 per share each quarter, translating to a 5.4% annualized dividend yield that you can lock into your portfolio today.

Fortis

Fortis Inc. (TSX: FTS) is another excellent dividend stock with a long history of hiking payouts to investors. Fortis is a $39.5 billion market-capitalization utility holdings company that provides natural gas and electric utility services to over 3 million customers across Canada, Latin America, and the US. Unlike Enbridge, it is a pure-play in the utilities sector, generating almost its entire revenue from long-term contracted assets in highly rate-regulated markets.

The essential nature of its business and predictable cash flows allow management at Fortis to invest comfortably in capital projects and fund dividend growth. Its successful business model has been rewarding increasing dividends to investors for decades. It is one of the few Canadian dividend stocks that boast an over 50-year dividend growth streak. As of this writing, Fortis stock trades for $77.23 per share and pays investors $0.64 per share each quarter, translating to a 3.3% dividend yield.

Foolish takeaway

Successfully investing in a volatile stock market can be challenging, but it is possible. It is a matter of conducting your due diligence and identifying long-term investments that can deliver consistent returns over the long run. If you build a well-balanced portfolio of reliable dividend stocks in a Tax-Free Savings Account (TFSA), you can enjoy the returns without incurring taxes on dividends, capital growth, or on any withdrawals. To this end, Fortis stock and Enbridge stock can be excellent picks to begin building your income-focused portfolio.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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