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3 Dividend Stocks to Buy and Hold for Decades

3 Dividend Stocks to Buy and Hold for Decades

Although the equity markets are up this month after a pullback in September, the rising COVID-19 cases and weak economic indicators could create headwinds. Also, the low-interest environment has made the yields on the debt instruments non-attractive. So, investors could invest in stocks that pay risk-free dividends to earn stable and predictable income.



a piece of luggage sitting on top of a suitcase: Various Canadian dollars in gray pants pocket


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Various Canadian dollars in gray pants pocket

Meanwhile, here are the three dividend stocks that you can buy and hold for decades.

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TELUS

With telecommunication becoming an essential service in today’s digital ecosystem, my first pick would by Telus (TSX:T)(NYSE:TU), which offers a diverse set of telecommunication products and services. Despite the pandemic, the company added 141,000 net new customers in its second quarter, which drove the company’s top-line by 3.6%.

Further, the company generated $511 million of free cash flows, representing year-over-year growth of 57%. Meanwhile, the company’s management expects its free cash flows for this year to come closer to the lower end of the earlier provided range of $1.4 billion to $1.7 billion. So, given its strong cash flows and healthy liquidity of $3.6 billion, I believe the company’s dividends are safe.

The company has announced quarterly dividends of $0.2913 per share for the third quarter, representing a dividend yield of 4.8%. Further, the management has announced to raise its dividends by 7-10% every year from 2020 to 2022, which is encouraging.

Meanwhile, Telus’s growth prospects also healthy, given the launch of its 5G network in five markets across Canada and rising demand for its services amid the structural shift toward remote working and learning. So, I believe Telus would be an excellent buy in this volatile environment.

Canadian Utilities

My second pick would be Canadian Utilities (TSX:CU), which generates 95% of its earnings from regulated

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