2 Long-Term Income Plays to Buy Now

Looking for one or more long-term income plays for your portfolio? Here are two great stocks to consider buying now and holding for decades.

| More on:
calculate and analyze stock

Image source: Getty Images

Is your portfolio diversified with a healthy mix of income and growth-focused stocks? Finding one or more investments that can provide a stable income stream can be a daunting task. Fortunately, there are plenty of options on the market, including these long-term income plays.

Canada’s telecoms make great long-term income plays

Rogers Communications (TSX:RCI.B)(NYSE:RCI) is one of the largest telecoms in Canada. Rogers provides national service to wireless, wired, TV and internet subscribers, which provides a stable and recurring source of revenue. By example, in the most recent quarter, the company reported $3,488 million in revenue.

If that weren’t enough, Rogers also has a sprawling media segment from TV and radio stations to maintaining an interest in professional sports teams.

There are several great reasons to consider Rogers as one of your portfolio long-term income plays. First, its massive size places it in an advantageous size over its peers, and more important, potential would-be competitors. This plays into the second point to note: its dividend.

Rogers provides investors with a quarterly payout that works out to a respectable 3.25% yield. While the yield may lag behind its peers, there’s good reason for that. Several years ago, Rogers decided to forego annual dividend hikes instead of investing in the company to drive future growth. One key investment to mention was that Rogers used those funds to pay down its debt.

Still, that’s not to say that Rogers won’t hike its dividend in the future. Rather, it will prioritize those initiatives to drive growth and lower debt.

Speaking of growth, one final reason to consider Rogers is the acquisition of its smaller rival, Shaw Communications. The $26 billion deal was announced earlier this year and is still subject to regulatory approvals. If accepted, the deal could provide Rogers with ample growth for years to come.

Banking on this stock will pay dividends

It would be hard to compile a list of great long-term income plays without mentioning at least one of Canada’s Big Six banks. Today, that bank is Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM).

CIBC is neither the largest nor the most well-known of Canada’s banks, but the bank does hold significant long-term appeal to investors. That appeal is focused on growth and income potential.

Several years ago, CIBC made the decision to re-enter the U.S. market, where it continues to thrive. By example, in the most recent quarter, CIBC’s U.S. segment reported a net income of $188 million. This reflects a handsome 14%, or $23 million improvement over the same period last year.

Turning to dividends, CIBC provides a quarterly payout to investors. The current yield works out to an appetizing 4.31% yield. This makes CIBC’s dividend one of the better-paying long-term income plays on the market even without factoring in annual dividend hikes.

Final thoughts

No investment is without risk. That said, both Rogers and CIBC are great long-term income plays for nearly any portfolio. They both offer a diversified revenue stream, a handsome dividend, and growth prospects for the next decade.

In other words, they are both investments that investors should buy now and hold for the long term.

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 Demetris Afxentiou owns shares of Shaw Communications. The Motley Fool recommends ROGERS COMMUNICATIONS INC. CL B NV.

More on Dividend Stocks

shopper chooses vegetables at grocery store
Dividend Stocks

Is Loblaw Stock a Buy for Its 1.2% Dividend Yield?

Loblaw stock may not have the highest dividend yield out there, but what does that really mean to today's investor?

Read more »

Hand Protecting Senior Couple
Retirement

These 2 Dividend ETFs Are a Retiree’s Best Friend

These two dividend ETFs could provide retirees with a diversified and stable income stream, while providing some price appreciation.

Read more »

ETF stands for Exchange Traded Fund
Dividend Stocks

How to Earn $2,000 in Passive Income in 2025 With Less Than $51,000 in Savings

You can invest in Canadian high yield stocks via the Vanguard FTSE Canadian High Yield Dividend ETF (TSX:VDY).

Read more »

monthly desk calendar
Dividend Stocks

This 7.8% Dividend Stock Pays Out Every Month

Not all monthly dividend stocks are created equal. And this top stock is certainly a strong choice for passive income.

Read more »

A worker gives a business presentation.
Dividend Stocks

Is TMX Group Stock a Buy, Sell, or Hold for 2025?

TMX Group (TSX:X) stock has been a consistent wealth-builder, generating 4,630% in total returns since 2002. Should you buy, sell,…

Read more »

Man data analyze
Dividend Stocks

2 Deeply Undervalued Dividend Stocks to Buy in November

Here are two stocks that I view as deeply undervalued this November.

Read more »

Dividend Stocks

The 2 Best Canadian Blue-Chip Stocks to Buy Now

Blue-chip stocks can be some of the best stocks to have in any portfolio. But when they're trending upwards, investors…

Read more »

Canadian dollars in a magnifying glass
Dividend Stocks

Here Are My Top 3 Dividend Stocks to Buy Now

These top dividends stocks have consistently paid and increased their dividends. Further, this trend will continue.

Read more »