3 dividend-paying Canadian stocks to buy and hold for 10 years


When you choose dividend-paying stocks to buy and hold for the next 10 years or more, you want companies that are sustainable. Plus, you want stocks that you’ll be sure to buy during market corrections to generate exceptional long-term returns.

Here are three dividend-paying Canadian stocks that you should consider buying and holding for a long time.

Quebecor

Among telecoms, Quebecor (TSX: QBR.B) is currently the best valued. The dividend-paying stock is trading at a discount of around 18% from the 12-month analyst consensus price target of $ 39.25 out of 12 analysts.

Quebecor, based in Montreal, is a diversified media and telecommunications company serving Quebec, as its name suggests.

The stock’s dividend payout ratio was relatively low, which allowed it to grow its dividend at an ultra-fast rate when combined with earnings growth. Since 2014, it has multiplied its dividend by 22!

Investors should note that its 2014 payout ratio is around 6%, while its forward payout ratio is estimated to be around 40%. This has not yet caught up with the payout ratio of the three big telecoms, which should allow the Quebecor share to continue to grow its dividend at a faster pace than the three big telecoms.

The lowest payout ratio of the big three telecoms is Rogers Communications whose payout rate is approximately 52%.

As a benchmark, Quebecor’s last 37.5% dividend hike was in the first quarter. Currently, it is reporting 3.4%.

kid

kid (TSX: GSY) is a very interesting dividend growth stock. At around $ 161 per share on writing, the stock is trading at a futures price-to-earnings (P / E) ratio of around 16.4, which is well above its normal 10-year P / E. about 11.8. However, its earnings per share are expected to grow by around 22% per year, which actually suggests that the growth stock is a good deal. This is why the stock has continued to recover since recovering from the pandemic crash.

prudent investors must be prepared to weather the volatility of the business cycle. During the pandemic market crash, the stock fell over 60% from top to bottom and traded at a P / E of around 6.3! Since that low, the stock has raised investor money at a rate of nearly six times!

Growth stocks are among the top performing Canadian dividend aristocrats over the past 10 years in terms of price appreciation. In addition, the growth of its dividend has been incredible. Its 10-year total returns are over 36% per annum, or 22 times investors’ money.

goeasy has maintained or increased its dividend every year since 2005. It has started paying steadily growing dividends since 2015. It has paid 6.6 times its payout since 2015 – increasing its dividend by almost 37% per year! Its current return of 1.6% is not bad given the low interest rates and the potential for income growth.

The company provides low cost leasing and loan services. Its acquisition of LendCare in April is expected to drive portfolio growth through vertical point-of-sale finance such as powersports and home improvement.

Investors should expect Goeasy to provide new long-term insights that incorporate LendCare’s contribution when it releases its second quarter financial results in August.

Brookfield infrastructure

Brookfield Infrastructure Partners (TSX: BIP.UN) (NYSE: BIP) is a stock dividend buy and hold. The company is diversified into utilities, transportation, intermediary and data infrastructure assets. For example, data transmission and distribution contributes about 12% of its operating funds (FFO), while rail operations contribute 15%.

It offers an initial return of almost 3.8%. Management’s overall value investing strategy aims to generate stable returns on investments in the 12-15% range. He’s a Canadian dividend aristocrat with 12 straight years of dividend increases. Expect more dividend increases of around 5-9% per year.

BIP’s commercial performance was very resilient in 2020 with FFO per unit growth of 2%. It followed with superb first quarter results which saw the FFO per unit jump 20% year over year, benefiting from the economic expansion as approximately 75% of its cash flow is tied. to inflation.

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This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

The Motley Fool recommends BROOKFIELD INFRA PARTNERS LP UNITS, Brookfield Infrastructure Partners and ROGERS COMMUNICATIONS INC. CL B NV. Foolish contributor Kay ng owns shares of Brookfield Infrastructure and goeasy.


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