Dividend-paying companies reward their shareholders by distributing a portion of their profits through regular dividends. However, dividend payments are not guaranteed. Therefore, investors should focus on companies with well-established businesses, reliable cash flows, strong dividend-growth track records, and healthy long-term growth prospects to benefit from both capital appreciation and consistent dividend payouts. With that in mind, here are three safe dividend stocks that investors can consider buying and holding for the long term.
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Enbridge
Enbridge (TSX:ENB) operates a highly contracted business, with approximately 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) generated from regulated assets and long-term take-or-pay contracts. In addition, inflation-indexed mechanisms protect a substantial portion of its earnings from rising costs, making the company’s financial performance relatively resilient to economic conditions and commodity price fluctuations.
Supported by its resilient business model and reliable cash flows, Enbridge has increased its dividend for 31 consecutive years and currently offers an attractive yield of approximately 5.41%.
Looking ahead, oil and natural gas production growth across North America should continue to drive demand for Enbridge’s infrastructure and services. The company has identified approximately $50 billion in growth opportunities and plans to invest $10 billion to $11 billion annually to fund these projects. These investments should support earnings and cash flow growth, strengthening the sustainability of Enbridge’s dividend and its ability to continue increasing payouts over the long term.
Fortis
Another safe dividend stock for long-term investors is Fortis (TSX:FTS), which serves 3.5 million customers and meets their electric and natural gas needs. Given its regulated asset base and low-risk transmission and distribution operations, its financials are less prone to economic cycles and market volatility. Supported by these reliable cash flows, the company has consistently grown its dividend payouts for 52 consecutive years and currently offers a healthy yield of 3.27%.
Moreover, Fortis continues to expand its asset base amid rising energy demand, driven by growing economic activity and the electrification of transportation. The company is progressing with its five-year capital investment plan of $28.8 billion, which can expand its rate base to $57.9 billion at an annualized rate of 7% by 2030. With these expansions projected to grow its financials, the company’s management expects to raise its dividend by 4-6% through 2030, making it an excellent buy.
Canadian Natural Resources
Another quality dividend stock that offers an attractive opportunity for long-term investors is Canadian Natural Resources (TSX:CNQ), which operates oil and natural gas assets across Western Canada, the North Sea, and offshore Africa. Its large, long-life, low-decline reserves require relatively modest capital reinvestment. In addition, its low-cost operating structure and disciplined capital allocation enable the company to generate robust free cash flow across commodity price cycles. Supported by these strong cash flows, CNQ has increased its dividend for 26 consecutive years, at an annualized rate of more than 20%, and currently offers a forward yield of 3.77%.
Looking ahead, elevated oil prices amid limited progress in U.S.-Iran diplomatic talks could support energy producers such as CNQ. Furthermore, oil and natural gas are expected to remain significant components of the global energy mix through 2050, despite the transition toward cleaner energy sources. To capitalize on these opportunities, CNQ plans to invest $6.9 billion this year to strengthen its production capabilities. Its approximately five billion barrels of oil equivalent reserves and 30-year proven reserve life also provide strong visibility into long-term production, making CNQ an attractive long-term investment.
