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Passive-Income Seekers: 4 Safe Dividend Stocks to Own Beyond 2033

Various Canadian dollars in gray pants pocket
Image source: Getty Images

Written by Amy Legate-Wolfe at The Motley Fool Canada

Right now is a great time to find dividend stocks — those that create passive income you can lock up now and look forward to throughout this downturn and eventual recession.

But what about beyond 2023?

The long-term investment strategy is long held as the top way of investing. Creating long-term investments means those dips in the market will eventually disappear. That you’ll continue to receive passive income for years to come and can use it to reinvest again and again. This is the easiest way for ultimate wealth as well as the safest.

But only if you choose the right dividend stocks. Today, I have four safe options.

Brookfield Infrastructure

Infrastructure makes up the necessary parts of our everyday life. Whether it’s having a shower, making a phone call, or taking the highway to work, you’re using infrastructure necessary for everyday life. Because of this, investing in company like Brookfield Infrastructure Partners (TSX:BIP.UN) just makes sense.


Of course, there are other infrastructure companies, but the reason I like BIP stock is because of the diversification among other dividend stocks in the sector. It focuses on long-lasting infrastructure that produce stable cash flows, which means those are cash flows that flow directly into your pocket. Plus, they’re located around the world, providing diversification both through the type and location of its assets.

Yet BIP stock is down 18% in the last year alone. Despite this, it’s still up 185% in the last decade! So, you can bring in a 4.76% dividend yield as of writing and hold on to decades of growth.

Canadian Utilities

Speaking of necessary, utilities are an area that BIP stock invests in already. However, Canadian Utilities (TSX:CU) has to be the best option in this field. The company provides power both through natural gas and renewable energy. So, even when the world transitions to clean energy production, you can be sure your investment is still safe.

What’s more, Canadian Utilities stock remains the only Dividend King on the TSX today. That’s 50 years of dividend growth! And you still get to enjoy the same long-term cash flows that you would with BIP stock.

The company even trades at a fair 18.08 times earnings as of writing, with shares down 3% in the last year. You can then bring in a dividend yield at 4.88% as of writing.

North West

The North West Company (TSX:NWC) is another strong choice but for a completely different reason. North West goes where other companies simply don’t. And by other companies, I mean retail and grocery chains.

Located in rural Alaska, northern Ontario, and other non-urban environments, North West’s locations provide pretty much the only option when it comes to essential products and shopping in general. So, there isn’t any of that fluctuation of consumers seeking out other options. That has left North West with solid earnings that continue to rise, as its peers fall.

Furthermore, North West trades at a valuable 14.98 times earnings, with shares down just 1.5% in the last year. In the last decade, however, it’s up 64%. So, you can bring in a 4.03% yield with your other dividend stocks as well.

Royal Bank

Finally, if you want security, I would certainly consider a Canadian bank. There simply isn’t the concern that there is in the United States — especially for one like Royal Bank of Canada (TSX:RY), which remains the largest of the banks by assets.

Royal Bank stock continues to be a stellar choice from its lucrative wealth and commercial management sector, its investments in emerging markets, and its capital markets. Coupled with provisions for loan losses, it’s an excellent choice knowing full well it will recover from this and any other downturn.

Royal Bank stock remains down by 9.5% in the last year, as of writing, trading at 12.16 times earnings. Yet again, shares are up 107% in the last decade, so you can bring in a 4.15% yield with this dividend stock.

The post Passive-Income Seekers: 4 Safe Dividend Stocks to Own Beyond 2033 appeared first on The Motley Fool Canada.

Free Dividend Stock Pick: 7.9% Yield and Monthly Payments

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Fool contributor Amy Legate-Wolfe has positions in Royal Bank Of Canada. The Motley Fool recommends Brookfield Infrastructure Partners and North West. The Motley Fool has a disclosure policy.