Author: Demetris Afxentiou at The Motley Fool Canada
Is your investment portfolio equipped with income-generating stocks? A well-balanced selection of dividend-paying stocks can significantly impact your retirement income, easing the need for prolonged work years.
Luckily, there are plenty of dividend stocks that long-term investors can consider to achieve this objective.
Below, I’ll highlight two strong dividend stocks from my personal portfolio that I intend to hold indefinitely, and I recommend you do the same.
Fortis: A Reliable Dividend Stock
First on the list is Fortis (TSX:FTS). As a utility stock, Fortis benefits from stable revenue through long-term regulated contracts, often lasting decades, providing a foundation of reliability.
Contrary to some perceptions that utility stocks like Fortis lack growth investments, the company has a robust $25 billion capital expenditure plan set for completion by 2030, which includes modernization and renewable energy initiatives.
Enbridge: A Strong Contender
The second stock worth considering is Enbridge (TSX:ENB), a leader in energy infrastructure with a robust pipeline business. Enbridge also engages in renewable energy production and operates one of North America’s largest natural gas utilities.
Enbridge’s pipeline operations generate consistent revenue, enabling the company to both invest in growth and maintain an attractive dividend yield of 5.5%. Its track record boasts annual dividend increases over the past 30 years, making it a strong investment choice.
Together, Fortis and Enbridge represent a balanced blend of growth potential, defensive qualities, and income generation, making them excellent assets for any diversified portfolio. Consider adding either or both stocks to strengthen your investments through fluctuating market conditions.
