3 Safe High-Yield Dividend Stocks to Buy and Hold Forever

Your income need not be crushed if you have safe, high-dividend stocks in your portfolio. When you buy shares of Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Telus Corporation (TSX:T)(NYSE:TU), and Suncor Energy Inc. (TSX:SU)(NYSE:SU), you’ll receive lifetime income.

| More on:

Everyone fears a recession. But for retirees who are about to get hit, the situation is very alarming. But why despair when you can receive income forever from safe, high-dividend stocks?

By investing in Toronto-Dominion Bank (TSX:TD)(NYSE:TD), Telus (TSX:T)(NYSE:TU), Suncor (TSX:SU)(NYSE:SU), there’s no way you would outlive your money.

Premiere bank stock

Ask any retiree who has investments in TD, and they will tell you how reliable the bank is in delivering passive income. I would suppose other long-term investors of TD have been able to retire wealthy.

TD could be the anchor stock in your portfolio. This $132.3 billion banking giant can provide the income stream, so you can cover your expenses and other needs during retirement. With over 137 years of corporate existence, you know that TD can help you achieve your long-term financial goals.

Up to this day, U.S. banks are unable to deliver double returns on equity the way TD has been generating them for over a decade. That is why both Canadian and American investors choose TD over any other banks.

In the last recession, TD saw the need to refocus and concentrate on the retail business. Since then, the bank has been producing incredible returns. More so, the strength of its retail banking segment allows TD to continue distributing dividends and raise them 17 times. The stock’s yield today is a relatively high 4%.

Well-loved telecom

Another wealth builder is industry stalwart Telus. A good number of retirees invest in this $29.4 billion telecom company to earn income for many years. The current dividend yield of 4.7% is not the highest in the market. However, it’s safe and sufficient to be a retiree’s active income.

The best part is that the stock is recession proof. As the second-largest telecom provider in Canada, Telus will continue to operate in an industry with minimal competition. Telus and two others have the monopoly of the sector.

Telus has been winning the hearts of customers and gaining a big slice of the market because of its extensive broadband network. The company also rates high in terms of customer service.

Telus has been experiencing robust subscriber growth and would grow it further with the coming 5G network. Moving forward, Telus could capitalize on several opportunities to boost its already active revenue-generating segments.

Value stock

In the energy sector, Suncor is the top-of-mind choice of retirees and dividend investors. You’ll also be in the company of billionaire Warren Buffett. Suncor is one of two energy stocks where the value investor’s conglomerate has equity holdings.

If you go by Buffett’s approach to investing, Suncor is not only a dependable dividend stock but a value stock as well. Investing in Canada’s leading integrated energy company will shield your money from an economic downturn. Even if the industry is showing some weakness today, the 4% dividend is safe.

Suncor keeps growing its energy portfolio, specifically on the renewable energy side. Combined with other assets, Suncor expects to grow 9.5% annually the next five years.

Analysts see a potential capital gain in the coming months. When taken together with the dividends, your overall returns will be higher than the market average.

Secret weapons

When the recession indicator is flashing red, it’s time for you to buy safe, high-yield dividend stocks. TD, Telus, and Suncor are the secret weapons against recession.

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 Dividend Stocks

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »

young people stare at smartphones
Dividend Stocks

GST/HST “Vacation”: Everything Canadians Need to Know

The GST/HST "vacation" is a little treat for the holidays, along with a $250 payment. What should you do with…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »