The best way to invest your money safely and efficiently is to invest for the long term. But that’s actually easier said than done. Even when you want to buy high-quality companies, it’s not always that easy to find them or predict the future. One thing’s for sure, though: most of the highest quality stocks to buy will be Canadian dividend stocks.
These massive businesses will be highly profitable and resilient, which is why they are worth owning for years. Plus, dividend stocks are the best stocks to count on, especially high-quality dividend growth stocks. So here are three of the best Canadian dividend stocks to buy today that you could certainly hold for 25 years, and probably even more.
A top Canadian telecom stock to buy now
Any of the major telecom stocks in Canada can be great investments over the long term. However, the best for stability and consistent dividend growth is BCE (TSX:BCE)(NYSE:BCE).
BCE is the largest telecom stock in Canada, with diversified operations, allowing it to be highly resilient. Telecommunications are key. In many cases, they are one of the most important services we need access to, and for a lot of people, especially those still working at home, they are vital to earning an income.
This makes the industry highly resilient, which is why it’s such a safe investment to own long-term. And because the telecommunications industry goes through significant innovation often, we continue to rely on it more, which only increases its importance in our economy.
So stocks like BCE, which has a current dividend yield north of 5.5%, consistently increases its payout each year, and is hardly volatile at all, are the ideal stocks you want to buy and hold for decades. Not only will your money grow consistently, but it will be well protected during recessions and market corrections as well.
A highly resilient utility stock
Speaking of safe investments, one of the lowest risk Canadian dividend stocks you can buy today is Fortis (TSX:FTS)(NYSE:FTS). Fortis is a massive utility stock and a highly popular investment because it is such a low-risk stock.
Utilities are another crucial industry regulated by governments, making them one of the safest investments you can make. And just like telecom stocks, these companies also own tonnes of long-life assets, allowing them to be major cash cows, and making them the perfect dividend growth stock for Canadian investors to buy and hold for years.
Fortis owns operations in several different jurisdictions all over Canada, the United States, and the Caribbean, giving it excellent diversification. Plus, it pays a dividend that currently yields 3.8% and has been increased for 47 consecutive years.
The company is slated to report earnings to shareholders next week and roll out its new five-year capital outlook. So if you like the company’s strategy going forward and are looking for an excellent dividend growth stock, Fortis is one of the best stocks Canadian investors can buy for the long run.
An excellent dividend growth stock
Lastly is a stock with a lower yield than Fortis or BCE, but offers higher growth potential, InterRent REIT (TSX:IIP.UN). InterRent is a rapid growth stock in the residential real estate industry. So while it’s still a relatively safe stock to invest in over the long term, it’s a much different investment than BCE or Fortis.
Because InterRent is rapidly expanding its portfolio, acquiring new assets in addition to upgrading its existing properties, the stock retains a lot more of the cash it earns in order to invest in that growth. This is why it doesn’t pay nearly as much as a dividend, yielding just 1.9% today.
However, over the last decade its grown investors’ money at a compound annual growth rate (CAGR) of 25%, compared to Fortis and BCE, which have grown investors’ capital at a CAGR of closer to 10%. And while a 10% CAGR over a decade is still attractive, a 25% CAGR is outstanding.
This makes InterRent another ideal Canadian dividend stock to buy today. It operates in a highly resilient industry but still offers a tonne of rapid growth potential, making it a perfect complement to lower volatility dividend stocks.
