Here are five “forever” dividend stocks that can be considered core holdings in diversified portfolios for long-term wealth building.
Manulife stock
Manulife (TSX:MFC) stock has shown strong growth over the past decade, increasing adjusted earnings per share by 10% annually. With a current price of $37.10 per share and a reasonable blended price-to-earnings ratio of 10.3, Manulife has the potential to deliver total returns of around 12% per year. The stock also offers a dividend yield of 4.3%, supported by a sustainable payout ratio of 43% of adjusted earnings.
TD stock
Toronto-Dominion Bank (TSX:TD) stock has a long history of paying dividends, dating back to 1857. With a 10-year dividend-growth rate of 9% per year, TD stock is currently trading at a discount of 18% from its long-term normal price-to-earnings ratio. At $76.74 per share, it offers a high dividend yield of 5.3%, making it an attractive investment for those seeking stable earnings.
Rogers Communications stock
Rogers Communications (TSX:RCI.B) stock has been resilient in the face of recent market volatility, losing only 16% of its value compared to other telecom stocks. With a current price of $50.42 per share and a blended price-to-earnings ratio of 10.7, Rogers Communications is trading at a discount of 34% from its long-term valuation. The stock also offers a safe dividend yield of almost 4%.
Brookfield Infrastructure Partners
Brookfield Infrastructure Partners (TSX:BIP.UN) is well-positioned to benefit from the global infrastructure industry’s growth potential. With a focus on regulated utilities, railroads, toll roads, and other critical infrastructure networks, Brookfield Infrastructure Partners generates quality funds from operations and targets annual growth of over 10%. At $41.52 per unit, the stock offers a cash distribution yield of 5.3% and is believed to be trading at a discount of over 20%.
Loblaw
Loblaw (TSX:L) stock may have a lower dividend yield of 1.2%, but the grocery store chain has shown strong growth in adjusted earnings per share and dividend payouts over the past decade. With a current price of around $165 per share and a blended price-to-earnings ratio of 20, Loblaw is considered fairly valued by analysts. Interested investors should consider buying shares on market corrections to capitalize on this defensive holding.
These five dividend stocks offer investors the opportunity to build wealth over the long term while receiving stable income through dividends. Consider adding them to your portfolio for a solid foundation for financial growth.