When it comes to investing in dividend stocks, there are no guarantees on Wall Street. Even reliable dividend payers can end up cutting their payouts, as seen with W.P. Carey resetting its dividend lower at the start of 2024. However, there are some dividend stocks that stand out for the reliability of the passive income they produce. If you are looking to collect dividends for decades, it’s worth examining Federal Realty (FRT), Toronto-Dominion Bank (TD), and Bank of Nova Scotia (BNS) right now.
Federal Realty is known as the Dividend King of REITs, having increased its dividend annually for an impressive 57 consecutive years. This streak is believed to be the longest among all REITs and puts the company in the elite group known as Dividend Kings. The REIT focuses on strip malls and mixed-use assets, with a portfolio size of around 100 properties. Federal Realty’s strategy of owning only the best assets in prime locations has paid off for investors, with a dividend yield of 4.3% at the current share price.
Toronto-Dominion Bank may not be a Dividend King, but it has paid dividends every year since 1857. The bank maintained its dividend through the Great Recession, a feat that many other banks struggled to achieve. Currently, TD Bank offers a historically attractive dividend yield of 5.1%. Despite recent regulatory issues and an asset cap in the U.S., TD Bank’s strong foundation in Canada and long history of rewarding investors with dividends make it a compelling investment for those with a long-term mindset.
Bank of Nova Scotia, also known as Scotiabank, has an even more impressive dividend record, having paid dividends every year since 1833. With a dividend yield of 5.3% at the current share price, Scotiabank offers one of the highest yields among Canadian banks. While the bank faced challenges in expanding into Central and South America, it is now focusing on growing its footprint in the U.S. market. Despite the turnaround effort taking time to play out, Scotiabank’s dividend history and high yield make it an attractive option for long-term investors.
In conclusion, Federal Realty, TD Bank, and Scotiabank are three options for long-term dividend investors looking for reliable passive income. While each company has its own unique strengths and challenges, their track records of paying dividends consistently make them appealing choices for investors with a long-term perspective. Consider these dividend stocks for a steady stream of income over the years.
