As many Canadians know, it has been more than thirty years since the Blue Jays last appeared in the World Series, winning it in 1993. While some stocks are still doing well over that period, increasing their dividends and expanding their operations, a lot has changed in the Canadian economy.
In 1993, the Internet was barely a thing, gasoline cost less than 60 cents a liter, and the TSX had less than half the mentions it has today.
But even though so much has changed – countless new companies have risen and fallen, entire industries have come and gone, and technology has completely changed the way we live – some Canadian companies have not only paid a dividend every year, but they’ve actually been increasing their dividends all the time.
So if you’re looking for high-quality dividend stocks that you can buy and hold with confidence for the long term, here are two Canadian stocks that have never broken dividend growth rates in the past 32 years.
A Canadian stock with 51 years of dividend growth
If you’re looking for high-quality dividend stocks that you can buy and hold with confidence for decades, there’s no doubt Fortis (TSX:FTS) is one of the best on the TSX.
It’s no secret that utility stocks are among the safest, most defensive, and reliable companies you can buy, and Fortis has proven that for more than half a century.
Because it provides essential services like electricity and natural gas, demand for those services almost never fluctuates, no matter what happens in the economy. And since these services are essential, the sector is regulated by the governments in the regions where Fortis operates.
This stability means that Fortis’s future revenues, cash flow and profits are highly predictable year after year.
This makes Fortis the perfect dividend share. With consistent profits, it can steadily increase its dividend while continuing to invest in future growth to grow its payouts along the way. And that consistent dividend growth is what drives the long-term compound.
For example, while Fortis’ dividend growth extends to 51 years, even if you had bought Fortis 32 years ago, in 1993, you would have earned a total return of 3.677% by holding the shares to date. That’s a compound annual growth rate of 12% over 32 years.
That’s exactly why finding high-quality and reliable stocks to buy, and then holding them for decades, is the best strategy.
And right now Fortis offers one yield of 3.4% and plans to increase the dividend by 4% to 6% annually until 2029.
A utility stock with a dividend yield of 4.6%
Besides Fortis, this is the only other Canadian stock with a longer dividend growth period, namely 53 years Canadian utilities (TSX:CU).
As I said above, utilities are among the best and most reliable companies to buy and hold for the long term, and Canadian Utilities is just one example of that.
Like Fortis, Canadian Utilities is responsible for the distribution of electricity and natural gas. However, it also operates energy infrastructure and storage solutions in Canada, Australia and Latin America.
Furthermore, in addition to the low-risk, government-regulated utilities that can make it such a reliable dividend stock, Canadian Utilities has also spent years diversifying its business and continues to invest in new opportunities like renewable energy.
Furthermore, in addition to slightly longer dividend growth than Fortis, Canadian Utilities also offers a yield of 4.6% today, which is significantly higher than Fortis.
So if you’re looking for a reliable dividend stock with an attractive yield to buy and hold for the long term, Canadian Utilities is definitely one to consider.
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