Keeping it within the family is the essence of generational wealth, including cash, real estate, stock investments, and other assets. The transfer of wealth is a multi-generational process; in some families, grandkids could be receivers of this substantial gift or inheritance.
Many Canadians built generational wealth from investments in Canadian National Railway (TSX:CNR), Loblaw (TSX:L), and BCE (TSX:BCE). Iâd be more than delighted to be a recipient of these large-cap stocks. I donât have to sell them and instead live off the dividends. Their common denominator is the evergreen business models that can sustain the payouts for decades.
The backbone of the economy
A nation builder and trade enabler like Canadian National Railway is a fail-safe investment. The $104.21 billion company has been around since 1919 and continues to adapt to the ever-changing demands in the rail and transportation industry. Its president and chief executive officer (CEO) Tracy Robinson said that CNR is positioned to deliver strong and sustainable value to shareholders — now and over the long term.
Management describes 2022 as a solid year. Total revenues and net income rose 18.2% and 4.5% to $17.1 billion and $5.1 billion versus 2021. CNR can overcome economic fluctuations, because of its geographic diversity and diversified, balanced portfolio. The company generates freight revenues from seven commodity groups.
CNRâs priorities are to drive consistent shareholder returns and earnings growth, including profitable top-line growth and strong free cash flow generation. At $156.11 per share (-2.47% year to date), the dividend yield is a decent 2.04%.
Stable as ever
Loblaw started operations the same year as CNR and has become an icon in Canadaâs grocery store industry. Business stability is the hallmark of this $37.54 billion food and pharmacy company. In 2022, revenue and net earnings increased 6.3% and 2.5% year over year to $56.5 billion and $1.9 billion, respectively.
In the fourth quarter (Q4) of 2022, the discount stores outperformed, benefiting from an increased consumer focus on price. Its chairman and president Galen G. Weston said, âLoblaw used its assets to provide value to customers in a period of continued inflation. Consumers responded favourably to those efforts and continued to benefit from our extensive private label offering, leading loyalty program and targeted promotions.â
The consumer-defensive stock trades at $116.29 per share (-2.52% year to date) and pays a modest but ultra-safe 1.41% dividend.
Cash cow
BCE is the top-of-mind choice of income investors. Besides the more than 100-year dividend track record (since 1881), the 5G stock ($60.79 per share) pays a mouth-watering 6.42% dividend. Who wouldnât want to receive a dividend heavyweight, if not a cash cow, from a generous giver?
Moreover, the $55.45 billion communications company has raised its dividends for 14 consecutive years. An industry leader with a wide economic moat needs no hard sell, and I donât see the investment thesis changing in the next few years. Its chief financial officer Glen LeBlanc said, âBCEâs fundamentals and competitive position are as strong as ever.â
Long-term wealth
CNR, Loblaw, and BCE are excellent stock holdings for generational wealth builders. The next generation would be lucky and privileged to receive the assets along with their gains.
The post 3 Stocks Youâll Probably Be Able to Pass On to Your Grandkids appeared first on The Motley Fool Canada.
Free Dividend Stock Pick: 7.9% Yield and Monthly Payments
Canadaâs inflation rate has skyrocketed to 6.9%, meaning youâre effectively losing money by investing in a GIC, or worse, leaving your money in a so-called âhigh interestâ savings account.
Thatâs why weâre 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!
Hereâs the best part: Weâre 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
- Is Now the Right Time to Buy BCE Stock?
- 2 TSX Dividend Stocks Paying Big Income in a Bearish Market
- Better Buy for Dividends â Enbridge or BCE Stock?
- How I’d Invest $20,000 to Earn Reliable Passive Income Today
- A Dividend Heavyweight I’d Buy Over Enbridge Right Now
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway. The Motley Fool has a disclosure policy.