Dividend stocks are often considered a safe investment for investors. That's because these typically come from well-established companies with a track record of consistent earnings and financial stability. These companies are usually leaders in their industries, with strong balance sheets and predictable cash flows. This allows them to pay out dividends regularly. The reliability is especially comforting during market turbulence, as dividend payments provide a steady income stream even when stock prices fluctuate.
Another factor that makes dividend stocks safe is the built-in cushion they provide through regular income. Even if the stock's price experiences short-term drops, the dividends can help offset some of the losses. This reduces the overall impact on your investment portfolio. Plus, companies that pay dividends often have a long-term focus, aiming to maintain or grow their payouts, which can lead to capital appreciation over time. For these reasons, dividend stocks are a go-to choice for investors who prioritize safety and steady returns in their portfolios. And here are some to consider right now.
BMO
Bank of Montreal (TSX:BMO) is a solid stock to hold for the next decade, and here's why. With a history of stable and growing dividends, BMO offers a forward annual dividend yield of 5.3% as of writing. This makes it an attractive option for long-term income investors. The consistent payout is supported by the bank's strong financials, including a profit margin of over 20% and a return on equity of 8.2%. These metrics indicate that BMO is not just surviving but thriving, even in a competitive banking environment.
Furthermore, BMO's solid revenue growth, with a quarterly year-over-year increase of 7.4%, highlights its resilience and ability to adapt to changing market conditions. The bank's massive cash reserves, totalling nearly $400 billion, provide a cushion as well – one that allows it to weather economic downturns and capitalize on growth opportunities. This strong financial foundation makes BMO a reliable stock to hold onto, as it's likely to continue delivering value to investors over the long haul.
Granite REIT
Granite Real Estate Investment Trust (TSX:GRT.UN) is a solid stock to hold onto for the next decade, thanks to its strong financials and attractive dividend yield. With a forward annual dividend yield of 4.6% as of writing, GRT.UN offers a reliable income stream. This is particularly appealing for long-term investors looking for stability in their portfolios. The trust's solid profit margin of 42.5% and an operating margin of 78.1% indicate its efficient operations and strong profitability – further enhancing its appeal as a long-term investment.
Furthermore, GRT.UN's consistent revenue growth, highlighted by a 7.6% year-over-year increase, shows its ability to perform well in various market conditions. The trust's low debt-to-equity ratio of 57.74% and a strong book value per share of $86.53 provide a solid financial foundation as well. This makes it a resilient choice for investors. Holding GRT.UN in your portfolio could be a smart move for those looking to benefit from steady income and capital appreciation now, and over the next decade.
Goeasy
Goeasy (TSX:GSY) stands out as a strong stock to hold for the next decade, offering both stability and growth potential. With a forward annual dividend yield of 2.5% as of writing and a low payout ratio of 27.7%, it provides a reliable income stream while retaining plenty of room for future growth. Its impressive return on equity of 25.3% showcases management's effectiveness in generating profit from shareholders' equity, making it a solid long-term investment. The company's consistent revenue growth, with a 15.4% year-over-year increase, also highlights its ability to thrive in various market conditions.
Moreover, GSY's robust financial position is evident in its high operating margin of 43.1% and profit margin of 33.4%, demonstrating efficient operations and strong profitability. With a trailing Price/Earnings (P/E) of 12.1 and a forward P/E of 10.7, the stock appears attractively valued, particularly for investors seeking long-term gains. As GSY continues to expand its market presence and enhance its earnings, it remains a strong choice for those looking to build a solid portfolio over the next decade.
