In addition, one should look for companies with benefits that are supported by resilient business models, steadily growing profits and a sustainable payout. These fundamentally strong companies are better equipped to deliver consistent revenue and solid total returns across market cycles.
So if you have $2,000, here are four dividend stocks you can buy and hold forever.
Dividend Stocks #1: Canadian Utilities
Canadian utilities (TSX:CU) is a top dividend stock to buy and hold forever due to its ability to maintain and grow dividends across market cycles. Its highly regulated and contracted operations generate predictable revenues and cash flow across market cycles, supporting payouts.
The utility has increased its dividend for 53 years in a row, reflecting the sustainability of its profits and payouts. Canadian Utilities’ payouts are supported by the continued expansion of the global regulated rate base.
Looking ahead, Canadian Utilities’ planned investments of approximately $6.1 billion in regulated utilities between 2025 and 2027 are expected to expand the rate base. This move will lead to meaningful growth in earnings and cash flows, supporting higher dividend payments.
Dividend shares no. 2: Fortis
Fortis (TSX:FTS) is another top dividend stock that you can buy and hold forever. The utility’s regulated assets, with a focus on energy transmission and distribution, enable it to generate predictable cash flows, which supports higher dividend payments.
Fortis has increased its dividend for 52 years in a row, reflecting the strength of its low-risk business model and growing cash flow.
Fortis is well positioned to grow its dividend year on year. The $28.8 billion capital plan will help expand and modernize regulated infrastructure. Management expects the regulated interest base to grow approximately 7% annually, driving steady earnings growth. In particular, Fortis has targeted an annual dividend increase of 4% to 6% until 2030. Moreover, rising demand for electricity is likely to determine financial performance and share price.
Dividend Stock No. 3: TC Energy
TC Energy (TSX:TRP) is another top Canadian dividend stock that you can buy and hold forever. The company operates a largely regulated, contracted energy infrastructure business that supports consistent payouts. TC Energy has increased its dividend for 25 years in a row, reflecting the sustainability of its cash flows and sustainable payouts.
Notably, about 98% of earnings before interest, taxes, depreciation and amortization come from regulated assets or take-or-pay contracts. This operational structure limits exposure to volatile commodity prices and ensures stability.
Looking ahead, the low-risk capital allocation framework, focus on high-return projects and long-term contracts will boost earnings and dividend payments. TC Energy targets long-term dividend growth of 3% to 5%, making it a reliable income stock.
Dividend Stock #4: Bank of Montreal
Bank of Montreal (TSX: BMO) is an attractive dividend stock to buy and hold forever. The bank has paid dividends for 197 consecutive years, demonstrating the strength of its earnings and focus on returning cash to its shareholders. Furthermore, BMO has grown its dividend by an average of 5.7% per year over the past fifteen years.
BMO’s well-diversified operating income, large and loyal deposit base, strong balance sheet and operational efficiency consistently drive earnings and dividend payments. The Canadian financial services company is well positioned to pay and grow its dividend, and maintains a sustainable payout ratio.
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