Investing in high-quality Canadian dividend stocks is a smart strategy for generating reliable, worry-free income over the long term. For those looking to buy and hold dependable TSX stocks for the next 20 years, consider adding these five top picks. These companies boast solid fundamentals and are well-positioned to consistently deliver dividends for years to come.
Fortis (TSX:FTS)
Fortis is a top choice for anyone seeking a long-term, reliable dividend stock. As a leading electric utility, its transmission and distribution assets protect it from risks associated with power generation and fluctuating commodity prices. Fortis operates on a rate-regulated business model, ensuring consistent cash flow and dependable dividend payments, regardless of market conditions.
The company has raised its dividend for 51 consecutive years, a remarkable achievement. With multi-billion-dollar capital projects set to boost its rate base at a 6.5% compound annual growth rate (CAGR) through 2029, Fortis is positioned for continued dividend growth, with expected increases of 4-6% per year in the coming years.
Enbridge (TSX:ENB)
Enbridge is another excellent stock to buy and hold for long-term, worry-free dividend income. This integrated energy infrastructure company benefits from a diversified asset base, high system utilization, and a robust cash flow structure, all of which allow it to reliably pay and increase dividends.
Enbridge has successfully raised its dividend for 30 consecutive years. Its investments in traditional and low-carbon energy projects, along with strong commercial agreements, ensure a steady cash flow, positioning the company well to continue increasing its dividend. Currently, Enbridge offers a solid yield of 5.9%, making it an attractive income-generating stock.
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Canadian Natural Resources (TSX:CNQ)
Canadian Natural Resources is a top dividend stock from the energy sector, known for its diversified production mix and long-life, low-decline assets. The company generates strong cash flows from its operations, particularly its high-value synthetic crude oil projects, which support its consistent dividend payments.
With 25 consecutive years of dividend increases at an impressive 21% CAGR, Canadian Natural Resources is well-positioned for long-term growth. The company’s vast portfolio of low-capital projects and extensive undeveloped land will drive future profitability and dividend growth.
Bank of Montreal (TSX:BMO)
The Bank of Montreal is one of the top Canadian financial institutions and an outstanding choice for dividend-focused investors. With 196 years of consecutive dividend payouts, it has a long track record of rewarding shareholders. BMO’s diversified revenue streams, solid credit quality, and operational efficiency drive its strong earnings and dividend payouts.
Over the past 15 years, BMO has increased its dividend at a CAGR of 5.4%. With a focus on improving efficiency and reducing non-interest expenses, the bank is well-positioned to continue raising its dividends in the future. BMO’s strong balance sheet provides a solid foundation for continued growth and reliable payouts.
Canadian Utilities (TSX:CU)
Canadian Utilities is a must-have stock for investors seeking reliable, long-term dividend income. The company’s regulated assets and low-risk earnings ensure steady, growing dividends. Canadian Utilities holds the record for the longest consecutive dividend growth streak among all Canadian stocks, with 52 years of continuous dividend increases.
Strategic investments in expanding its regulated asset base will continue to drive earnings and support higher dividend payouts. The company’s contracted infrastructure assets also position it for strong growth and continued dividend increases over time.
Conclusion:
For those looking to build a portfolio of reliable dividend-paying stocks, these five Canadian companies—Fortis, Enbridge, Canadian Natural Resources, Bank of Montreal, and Canadian Utilities—are excellent long-term investments. Their solid fundamentals, strong cash flows, and consistent dividend growth make them ideal choices for investors seeking to generate steady income for decades to come.
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