2 Dividend Stocks to Set and Forget

clock time

Investors seeking long-term income might be struggling these days. You want to set up some investments and forget about them, knowing they’ll continue to do well. The problem is, nothing seems to be doing well these days.

Today, however, I’m going to show you two dividend stocks to consider setting and forgetting. These may not have done well in the last year, but long term they’re steady-and-stable stocks you’ll look back on with pride. Further, they’ll help you reach any of your long-term goals thanks to the reinvestment of those dividends.

So if you’ve been sitting on around $10,000, let’s put it to work with these two dividend stocks.

Power Corporation of Canada

The Power Corporation of Canada (TSX:POW) is a strong choice for those seeking long-term income they can set and forget. It’s one of the dividend stocks that’s been on the market for decades, but is also in the stable and growing industry of insurance. Because of this, it has a worldwide network of income, with more revenue streams added on a regular basis.

The company also trades within value territory right now at just 11.3 times earnings, and a super high 5.93% dividend yield. And when you look at the company’s history, it’s just as valuable. Shares are up 334% in the last 20 years, for a compound annual growth rate (CAGR) of 7.6%. Meanwhile, its dividend has risen by a CAGR of 4.4% in that time.

All considered, you could safely store your $10,000 knowing it will grow at a steady rate. That investment could turn into $101,404 with dividends reinvested in another 20 years!

Open Text

I know, I’m recommending a tech stock for long-term income. How could you possibly set and forget this? But in the case of Open Text (TSX:OTEX), investors may want to make an exception. This tech stock is a strong choice with a long history of growth, along with major partnerships from household names.

The company focuses on cybersecurity and data storage in its cloud system. And some of the biggest brands in the world use the product, driving up revenue quarter after quarter. So right now, with shares trading as they are, this price offers a major steal for long-term income.

Open Text shares have climbed 776% in the last 20 years, for a CAGR of 11.5% as of writing. Further, its 3.31% dividend yield has climbed at a CAGR of 17% in the last nine years since the dividend was introduced.

Put simply, investors could see their $10,000 investment turn into $283,524 based on this historical performance in another 20 years!

Bottom line

If you’re looking for income you can set and forget, look for top dividend stocks that have a history of strong growth. Even better, find companies no one else is considering during this downturn! This will provide you with a likely boost coming out of a potential recession, and more income to look forward to for decades to come.

The post 2 Dividend Stocks to Set and Forget appeared first on The Motley Fool Canada.

Free Dividend Stock Pick: 7.9% Yield and Monthly Payments

Canada’s inflation rate has skyrocketed to 6.9%, meaning you’re effectively losing money by investing in a GIC, or worse, leaving your money in a so-called “high interest” savings account.

That’s why we’re alerting investors to a high-yield Canadian dividend stock that looks ridiculously cheap right now. Not only does it yield a whopping 7.9%, but it pays monthly!

Here’s the best part: We’re giving this dividend pick away for FREE today.

Claim your free dividend stock pick
* Percentages as of 11/29/22

setButtonColorDefaults(“#5FA85D”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43A24A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);

More reading

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.