3 Dividend Stocks That Could Pay You for Life

BCE Inc. (TSX:BCE)(NYSE:BCE), Royal Bank of Canada (TSX:RY)(NYSE:RY), and Sun Life Financial Inc. (TSX:SLF)(NYSE:SLF) stand out as the dividend stocks you can depend on for the duration of your human existence.

| More on:

Preference for dividend stocks has risen because the number of passive investors has also risen in recent years. This breed of investors does not have the time or energy to monitor their investments. But with global trade tensions permeating, there is comfort in stocks that will pay dividends for the rest of your life.

Companies that have proven track records of dividend payments are considered “dividend kings.” Although they’re not necessarily the highest dividend payers you’d love to have in your stock portfolio, the income stream is consistent and never-ending regardless of the market environment. You just sit back and receive the income.

BCE (TSX:BCE)(NYSE:BCE), Royal Bank (TSX:RY)(NYSE:RY), and Sun Life Financial (TSX:SLF)(NYSE:SLF) are preferred by passive investors and dividend-growth fanatics. The trio has the staying power and requires minimal evaluation. Their standing in the industries they operate in is unassailable.

Anchor in a stock portfolio

BCE is the largest communications company in Canada that has been in operation since 1880. This $54.7 billion telecom and media company is also the leader in a sector that has yet to be deregulated. As such, BCE dominates the telecom industry. There’s no need for a lengthy discussion to justify the intrinsic worth.

Prospective investors will surely be delighted to collect higher-than-average dividends. That’s the kind of dividend stock that can serve as an anchor in any stock portfolio. For the last five years, BCE has been doling out an average dividend yield of 4.83%. During the same period, dividend growth is 7.81%.

Never a bad investment

Just like BCE, Royal Bank of Canada is the best of the lot. From a humble regional bank when it commenced operations back in 1869, it’s now one of the most stable global banks. Royal Bank stood out during the Great Recession.

Royal Bank’s dividend streak is truly admirable. It all began in 1943 as investors witnessed increasing dividends year after year. The streak was halted in 2008, as the bank saw it fit to freeze the same to weather the financial crisis.

The payouts resumed in 2010 and have never been frozen again. Currently, the dividend yield is 4%. Net income is rising annually, and the average increase in the last three years is $825 million. A financial institution as solid and stable as Royal Bank is certainly a high-quality stock for keeps.

Insurer for generations

Another large-cap stock that’s positively a “buy-and-forget” stock is Sun Life Financial. This $31.1 billion diversified financial services company is a celebrated name in the insurance industry. The strong network of sales agents, financial intermediaries, and third-party marketing organizations brings in the business.

Sun Life belongs to the league of dividend heavyweights. Insurance stocks are commonly chosen by retirement planners and conservative investors. The 5% dividend yield is the brightest spot too. Sun Life’s insurance, wealth, and asset management solutions will live on 100 years times 100.

If you want income for the rest of your life, invest in the pillars of industries.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

More on Investing

think thought consider
Tech Stocks

Is CGI Stock a Buy Even With No Dividend Yield?

CGI stock may not have a dividend to speak of. But does that necessarily mean you should ignore this top…

Read more »

A robotic hand interacting with a visual AI touchscreen display.
Tech Stocks

Why Now Is the Time to Invest in Canadian AI Stocks

Are you looking for one of the most solid Canadian AI stocks out there? This one is probably your best…

Read more »

The letters AI glowing on a circuit board processor.
Tech Stocks

Why AI Stocks Should Be in Every Canadian Investor’s Portfolio

AI stocks continue to be one of the best options out there for long-term investing, especially when considering Canadian options.

Read more »

stock research, analyze data
Bank Stocks

Canadian Bank Stocks: Buy, Sell, or Hold?

There are opportunities and risks on the horizon for the Canadian banks.

Read more »

Young Boy with Jet Pack Dreams of Flying
Stock Market

Is Air Canada Stock a Good Buy After Its Q3 Results

Down almost 60% from all-time highs, Air Canada is an undervalued TSX stock that remains an enticing investment in November…

Read more »

cloud computing
Investing

Where to Invest $10,000 in November

Given their solid underlying businesses and healthy growth prospects, I expect these two defensive stocks to outperform uncertain outlook.

Read more »

coins jump into piggy bank
Retirement

Here’s the Average RRSP Balance at Age 44 for Canadians

Holding stocks like Alimentation Couche-Tard (TSX:ATD) in an RRSP is a good way to build your wealth.

Read more »

dividends can compound over time
Dividend Stocks

Want a 7% Yield? The 3 TSX Stocks to Buy Today

These TSX stocks are offering high yields of over 7%, making them attractive for investors seeking steady passive income.

Read more »