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2 Top Dividend Stocks to Buy and Hold for 30 Years

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Written by Joey Frenette at The Motley Fool Canada

As the August slump continues, value investors should be thinking of getting a buy list ready. Indeed, a stock market pullback in the range of 5-15% is only a bad thing if you don’t have cash on the sidelines to take advantage of lower prices. Even if you don’t have extra cash, just sitting on the sidelines, ready to be put to work on a market bargain, you need not worry, unless you need the cash out at some point in the near future.

Indeed, that’s why you should only commit money that you don’t intend to use at any point over the next three to five years. Personally, I suggest investing with a time horizon of five years at minimum, given recessions and bear markets tend to need a bit of time to recover from.


Further, it’s never a good idea to try to steer clear of any potential market chaos, as Mr. Market is so incredibly unpredictable on a day-to-day or even month-to-month basis! Over the years, though, the trend is higher, and it’s this horizon that can enrich prudent investors with a nose for value.

In this piece, we’ll check out two top dividend stocks in Canada that I’d be willing to hold, not just for the next five years but for the next 10, 20, or even 30 years! They’re wonderful businesses that have wide moats and the ability to take retirement portfolios to the next level.

TD Bank

Up first, we have a Canadian bank that’s steadily improved its presence south of the border. Indeed, TD Bank‘s (TSX:TD) venture south could help it nudge growth rates higher over the long run. The domestic banking scene may not be “growthy,” but it is on some pretty solid footing. With the perfect mix of U.S. and Canadian exposure, TD is a very compelling bank stock for Canadian investors seeking the best of both worlds.

Of late, TD’s U.S. exposure has worked against it in a big way. The stock already felt the hit earlier this year, when U.S. regional banks faced considerable pressure at the hands of a few notable runs and failures. On Tuesdays, TD stock fell 1.2%, giving back a bit of ground it gained through the summer. A big part was investor jitters over some regional bank downgrades. I view the reaction as overdone. In due time, the regional woes will pass, and TD may be in a spot to get a good value for money once it’s ready to conduct mergers & acquisitions again.

TD probably won’t make a splash down south over the next few quarters. However, over the next few years, I’d bank on such a deal happening. For long-term investors, TD is a stellar bargain at less than 10.5 times trailing price to earnings. The 4.6% dividend yield is also solid. Though perhaps less competitive versus Guaranteed Investment Certificates these days!

Waste Connections

Waste Connections (TSX:WCN) is a pretty boring business with one of the widest moats in North America. The company has been steadily growing, thanks in part to smart acquisitions over the years. As a downturn hits the economy, expect it to be business as usual for the major North American waste collector. It’s had little issue weaving past inflation’s blow.

With strong pricing power and the ability to withstand a recession, WCN stock deserves to trade at its more than 40 times trailing price-to-earnings multiple. My takeaway? Just stash the stock for years or even decades at a time. The industry is unlikely to change over the timespan, in my opinion.

The dividend yield is less impressive at 0.74%. However, it’s poised for growth over the long run.

The post 2 Top Dividend Stocks to Buy and Hold for 30 Years appeared first on The Motley Fool Canada.

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Fool contributor Joey Frenette has positions in Toronto-Dominion Bank. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.