3 Dividend Stocks to Buy and Never, Ever Sell

Christopher Liew, CFA
·4 min read
Growth from coins

This year could be the best year ever for the TSX, given its resiliency amid the global pandemic. Canada’s primary stock market also rebounded strongly in 2009 after the catastrophic financial crisis in 2008. However, a good six months remain, and no one is sure if the rally will sustain until year-end.

The TSX would have ended 2020 with a bang if not for COVID-19. Instead, it gained only 2.17%. As of this writing, the general index is up 13.15%. Also, only one (materials) of the 11 primary sectors is in negative territory. Its highest close this year was 20,300 on July 6, 2021.

Since the market could still turn sour, the best strategy to ride out future highs and lows is to invest long term. Historically, too, long-term investments outperform the market. On the TSX, you can buy three dividend stocks today and never, ever sell again.

Top performer

The Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) not only pays a hefty dividend, but its dividend track record dates back to 1868. At $77.61 per share, Canada’s fifth-largest bank pays an attractive 4.15% dividend.

CIBC also had the highest profit growth in the banking sector in Q2 fiscal 2021 (quarter ended April 30, 2021). Management reported a 321% increase in net income versus Q2 fiscal 2020. For the first half of fiscal 2021, net income is 104.24% higher than the same period last year.

The 153-year dividend track record should also give you the confidence to invest in CIBC. Over the last 48.5 years, the bank stock’s total return is 18,176.25% (11.34% CAGR). This blue-chip company is a must-have in anyone’s dividend portfolio.

Industry leader

BCE (TSX:BCE)(NYSE:BCE), Canada’s largest telecommunications company, is an investment for the long haul. Its dividend track record is nearly as old as Alexander Graham Bell, the inventor of the telephone. Would you believe that this $56.27 billion telecom giant hasn’t missed a dividend payment for almost 140 years?

The telco stock isn’t the TSX’s top performer in 2021, although it still outperforms the broader market with its 17.5% year-to-date gain. BCE’s current share price is $62.26, while the dividend yield is a hefty 5.66%.

BCE is a wealth-builder, no less. A $50,000 investment today will balloon nearly 400% to $198,000 in 25 years. In 2021, the company continues to dominate in the oligopoly. Its recent move to boost its industry-leading position in 5G network services is the collaboration with Google Cloud of Alphabet.

Underrated

Imperial Oil (TSX:IMO) is underrated following the forgettable performance of the energy sector in 2020. However, most energy stocks are on the comeback trail this year as oil prices and demand continues to rise. This energy stock, for instance, outperforms the TSX, CIBC, and BCE with its 42.11% year-to-date gain.

The $24.89 billion crude oil and natural producer pays only a modest 2.78% dividend than CIBC and BCE. However, Imperial Oil is at par in terms of dividend track record.

The energy stock boasts of consistent dividend payments for more than a century too. Furthermore, it has increased its dividend for 25 straight calendar years. Last, Imperial Oil is a subsidiary of American oil giant Exxon Mobil.

Better long-term returns

A market downswing is possible, notwithstanding TSX’s display of resiliency so far. If you want better long-term returns, buy and hold the three dividend stocks.

The post 3 Dividend Stocks to Buy and Never, Ever Sell appeared first on The Motley Fool Canada.

The Motley Fool’s First-Ever Cryptocurrency Buy Alert

For the first time ever, The Motley Fool has issued an official BUY alert on a cryptocurrency.

We’ve taken the exact same detailed analysis that we’ve used to find world-beating stocks like Amazon, Netflix, and Shopify to find what we believe will be the ONE cryptocurrency to rise above more than 4,000 cryptocurrencies.

Don’t miss out on what could be a once-in-a-generation investing opportunity.

Click here to get the full story!

More reading

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Alphabet (A shares) and Alphabet (C shares).

2021

  • Up next
  • Up next
  • Up next
  • Up next

Latest Stories

  • Northfield Bancorp Inc (NFBK) Q1 2024 Earnings: Aligns with Analyst EPS Projections Amidst ...

    Comprehensive Analysis of Northfield Bancorp's First Quarter Financial Performance

  • CBIZ Inc (CBZ) Q1 2024 Earnings: Surpasses Revenue Forecasts and Aligns with EPS Projections

    Robust Growth in Revenue and Adjusted Earnings Amid Strategic Acquisitions

  • Drag star ‘very vindicated’ after Laurence Fox libel damages ruling

    Mr Fox was successfully sued by drag artist Crystal and former Stonewall trustee Simon Blake over a row on Twitter, now known as X.

  • This 10-in-1 air fryer and toaster oven from Kalorik — the brand Courteney Cox uses — is down to $160

    No one wants to heat a full-size oven on sweltering days, so snag this 26-quart workhorse at its best price yet this year.

  • UPDATE 1-PG&E beats quarterly profit view, eyes electricity demand growth

    Power company PG&E Corp beat Wall Street estimates for first-quarter profit and raised its full-year earnings forecast on Thursday, helped by higher electricity rates and lower operating and wildfire-related costs. Last year, the California Public Utilities Commission (CPUC) voted to approve PG&E's infrastructure plan that would lead customer bills to rise by nearly 13%. In January, the CPUC also approved a $45 million settlement for the utility's part in the destructive 2021 Dixie wildfire, which in 2021 resulted in more than 963,000 acres (390,000 hectares) being burned across multiple counties.

  • BHP Might Need to Boost Its Bid for Anglo American. Other Buyer Could Emerge.

    BHP might have to sweeten its offer for Anglo American if it wants to succeed in its takeover of the diversified international miner with stakes in three big South American copper mines. BHP, which is the world’s largest miner and a major producer of iron ore, made an offer for London-based Anglo American that values the company at 25.08 pounds per share, or 2,508 pence, including the value of stakes in Anglo American Platinum and Kumba Iron Ore that would be spun off to Anglo American shareholders before any deal. Anglo American said it is reviewing the proposal.

  • Frankie Capan III shoots 58 on Korn Ferry Tour, breaks Scottie Scheffler’s course record in process

    What a round!

  • Ford sees commercial revenue jump 36%, EV sales fall 84% YoY

    Ford (F) reported its first-quarter earnings after the bell on Wednesday afternoon, beating estimates with $42.8 billion in revenue against an expected $40.04 billion. The automaker also reported commercial revenue jump 36% but saw EV sales decline.  Yahoo Finance Reporter Pras Subramanian joins The Morning Brief to break down the numbers from Ford and what it means for investors moving forward.  For more expert insight and the latest market action, click here to watch this full episode of Morning Brief. This post was written by Nicholas Jacobino

  • Bond Yields Have Jumped. Treasuries Look Like Plain Old Buys.

    It’s time to buy Treasury bonds again. Driving the yield higher has been stubbornly high inflation that has made it increasingly clear that the Federal Reserve won’t soon start reversing the 11 interest-rate increases it has rolled out since March 2022 as it seeks to rein in price growth. Higher yields are wreaking havoc on the stock market because they threaten to slow spending and borrowing by both consumers and businesses.

  • US Marshal assaulted while serving warrant in Cleveland

    A US Marshal was assaulted at a Cleveland house on Thursday morning serving an arrest warrant.

  • Timmins backs second transmission line bid

    The City of Timmins is backing another bid for a new transmission line. Timmins Mayor Michelle Boileau has sent a letter of support to the Transmission Infrastructure Partnerships 9 (TIP-9 coalition) for its bid on the Wawa to Porcupine transmission line. It’s the second proposal for the transmission line that the city has supported. The TIP-9 coalition includes the Taykwa Tagamou Nation, Michipicoten First Nation, Chapleau Cree First Nation and Missanabie Cree First Nation. It has partnered wit

  • Dramatic video shows Boeing plane bounce off LAX runway

    Lufthansa admitted that their Tuesday flight to LAX had a bit of a ‘rough landing’ when it touched down

  • David Schultz's widow: 'We don't have to wonder where he is anymore'

    David Schultz's widow: 'We don't have to wonder where he is anymore'

  • UPDATE 1-Agency bars Chinese telecom carriers from offering US broadband services

    The Federal Communications Commission said on Thursday it is ordering the U.S. units of China Telecom, China Unicom and China Mobile to discontinue fixed or mobile broadband internet operations in the United States. The FCC said it was requiring the Chinese carriers to discontinue services within 60 days of the effective date of the net neutrality order approved on Thursday. The order also applies to Chinese telecom Pacific Networks and its wholly owned subsidiary ComNet.

  • Taking on debt for summer travel? You're not alone

    The summer travel season is around the corner. But with high inflation and interest rates, there are questions about the health of the US consumer heading into the summer. A new Bankrate survey found that more than one-third of Americans are willing to take on debt for travel. Bankrate Senior Industry Analyst Ted Rossman joins Wealth! to give insight into the health of the consumer during the summer travel season. When asked who specifically was willing to take on debt, Rossman responds, "Millennials, actually, they love their experiences. They are more likely to be splurging on travel. Where it really stood out was a different recent study we did, we asked not only about travel but also dining and concerts and sporting events and other live entertainment, that's where people under the age of 40 really stood out." For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino

  • UPDATE 1-Dollar sags after US GDP and inflation surprise, except against yen

    While the dollar was hardly shaken against the beleaguered yen, it otherwise saw only a brief gain after the Commerce Department reported that U.S. gross domestic product grew at a 1.6% annualized rate in the January-March period, slower than the 2.4% rate expected by economists polled by Reuters. The inflation surprise puts an even greater-than-usual focus on the release on Friday of PCE price index data for March. The yen, meanwhile, hit a fresh 34-year low versus the dollar and a 16-year low against the euro on Thursday as investors expect a Bank of Japan (BOJ) policy meeting that ends on Friday to not be hawkish enough to support the Japanese currency.

  • Mooresville to buy and clean up toxic coal ash site along busy Lake Norman highway

    “The town is taking a leadership position on this critical issue,” Mooresville mayor says.

  • Alphonsi backs Kildunne to land Player of the Championship crown

    England legend Maggie Alphonsi tipped Red Roses star Ellie Kildunne to crowned Women’s Six Nations Player of the Championship ahead of this weekend’s Grand Slam decider against France.

  • Valley National Bancorp's Q1 profit plunges on bigger loan-loss provisions

    Valley National Bancorp reported a slump in its first-quarter profit on Thursday, dragged down by a fivefold increase in rainy-day funds on account of its exposure to commercial real estate. High interest rates and borrowing costs have heightened worries of debt defaults in the commercial real estate (CRE) market, which is already in doldrums due to empty office buildings in the post-pandemic era. Valley National's provisions for credit losses surged to $45.3 million in the first quarter, compared with $9.5 million a year earlier.

  • Yousaf’s future in Alex Salmond’s hands as Greens to vote no confidence in FM

    Alex Salmond’s Alba Party will now decide whether Humza Yousaf is forced to resign as First Minister as the Scottish Greens said they would vote against him in a confidence vote at Holyrood.