2 blue-chip dividend-paying stocks to buy and hold forever

When writing, the S & P / TSX Composite Index is up 16.86% year-to-date as it continues to stay close to new all-time highs. At these levels, it might be tempting to consider buying and holding stocks of growth companies which are generally subject to volatility in bearish market conditions.

Purchase high growth stocks is a good approach in bull market conditions. However, it would be a wise decision to consider diversifying your investment portfolio and increasing your exposure to high quality blue chip stocks which are better long term investments.

Blue-chip stocks are generally companies with certain qualities that make them ideal investments for long-term investors. These companies are often considered the best in their respective industries and have a higher market capitalization than their peers.

The most important aspect of these companies is that they are established players in their industry, have strong finances, and investors can trust investors to generate stellar long-term wealth growth. Many blue-chip stocks also offer reliable dividends to shareholders. Invest in dividend stocks that can generate returns through capital gains and reliable payments could help you build lasting wealth.

Today I’m going to discuss two of those top-notch stocks you should have on your radar today.


AEC (TSX: BCE) (NYSE: BCE) is the first blue chip stock I wanted to discuss today. The company is a giant of the Canadian telecommunications and media industry and enjoys national coverage which gives the company a wide and very defensive economic gap. The growing popularity of 5G technology is the next major shift for the global telecommunications industry, and BCE has increased its capital spending to expand its 5G coverage.

The company plans to provide its 5G services to 70% of the Canadian population by the end of 2021. In addition, the company has invested in upgrading its fiber-optic and rural home Internet networks to improve improve their income. In addition to the growth in its telecommunications and Internet revenues, BCE saw its media segment register an impressive 30% increase in revenues in its media segment during the last quarter.

At the time of writing, the stock is trading at $ 64.44 per share and has a hefty dividend yield of 5.43%.

Royal Bank of Canada

The Royal Bank of Canada (TSX: RY) (NYSE: RY) is the nation’s largest financial institution by market capitalization. Up to Shopify came to dethrone him, the Royal Bank was also the first title on the TSX in terms of market capitalization. The bank is one of the world’s leading financial institutions and a staple in many investor portfolios.

The Canadian banking industry is renowned for its stability, and Royal Bank stocks arguably represent the best the industry has to offer. Stocks have long been an ideal asset for providing investors with wealth growth through reliable capital gains and dividend income. Ongoing economic expansion, lower provisions for credit losses (PCL) and increased consumer demand have allowed the stock to post solid growth this year.

At the time of writing, the stock is trading at $ 131.18 per share and has a dividend yield of 3.29%.

Stupid takeaways

While positive stock market dynamics generally bode well for growth-seeking investors, now is also a good time to be careful with your investment capital. There is no way to predict when a stock market crash will occur, but a significant downturn could devastate your capital.

Invest in assets with defensive qualities and economic moats large enough to withstand market corrections for generate strong long-term wealth growth would be a good way to go. BCE shares and Royal Bank shares might be ideal assets to consider for this purpose.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We are straight! Challenging an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer, so we post sometimes articles that may not conform to recommendations, rankings or other content. .

Foolish contributor Adam Othman has no position on any of the stocks mentioned. The Motley Fool owns shares and recommends Shopify. The Motley Fool recommends the following options: $ 1,140 long calls in January 2023 on Shopify and $ 1,160 short calls in January 2023 on Shopify.

Comments are closed.