3 Brilliant Dividend Stocks to Buy Now and Hold for the Long Term

Dividend-paying stocks can vary greatly, which means there isn’t a single strategy that suits all investors. This diversity is advantageous since every investor has unique financial goals and risk tolerances. If you’re considering purchasing dividend stocks, it’s essential to scrutinize Federal Realty (FRT), Visa (V), and Bank of Nova Scotia (BNS). Here’s why these three might be outstanding long-term investments for the right investor:

1. Federal Realty (FRT): A real estate investment trust specializing in retail properties, FRT could appeal to investors seeking stable income from a sector with growing demand.
2. Visa (V): As a global leader in digital payments, Visa’s growth potential and dividend payouts make it an attractive choice for those looking to capitalize on the ongoing shift towards cashless transactions.
3. Bank of Nova Scotia (BNS): With a strong presence in North America and Latin America, BNS offers diversified exposure to global markets and could be suitable for investors seeking income and growth opportunities from the financial sector.

1. Federal Realty is boring and reliable

Federal Realty is a company specializing in real estate investments that primarily deals with retail properties. They own strip malls and mixed-use developments, with a focus on retail establishments. Compared to other retail real estate investment trusts (REITs), they manage approximately 100 properties; however, these properties are substantial in size and strategically located in areas with larger average populations and income levels compared to their closest competitors.

As a property enthusiast, I’m always impressed by Federal Realty’s knack for development and redevelopment! This company doesn’t just sit back; it actively manages its portfolio, scooping up assets in need of TLC, giving them a facelift to boost their value and rental potential, and then selling when the right offer comes along. It’s a cycle that keeps on giving, and over time, this model has proven incredibly successful. In fact, Federal Realty is the sole REIT to earn Dividend King status – a testament to its enduring success!

Currently, it boasts an appealing 4.6% dividend return, significantly higher than the 1.3% yield of the S&P 500 index (^GSPC) and the 4.1% average for REITs. If you’re seeking a substantial and dependable income source, Federal Realty is certainly worth considering today.

2. Visa is a dividend growth machine

Not all individuals who invest in dividends prioritize high yields; instead, some focus on dividend increase. In this aspect, Visa stands out, as its annualized dividend growth rate over the past ten years has been remarkably robust at 17%. Although recent growth has moderated somewhat, the company’s one-, three-, and five-year dividend growth rates all exceed 10%, making it an attractive proposition for investors who seek dividend growth. These figures are likely to appeal to those who prioritize growing dividends.

Visa serves as a financial intermediary, overseeing numerous transactions made with cards bearing its logo. For each transaction, it collects relatively small fees. Although the amount per transaction is modest, the cumulative total across all transactions is substantial. Remarkably, this business continues to expand even given its already significant size. In the second quarter of 2025, Visa reported a 9% increase in the number of transactions compared to the previous year, resulting in an uptick of 9% in revenues and a rise of 10% in adjusted profits.

One potential issue with Visa’s stock lies in the fact that many investors recognize the allure of its business at present, causing its price-to-sales and price-to-earnings ratios to surpass their historical averages over the past five years. However, it’s essential to mention that these figures aren’t excessively higher than the norm. Consequently, more daring investors prioritizing dividend growth (boasting a yield of approximately 0.7%) might consider buying in now. Keeping in mind that the global trend is moving towards digital and card payments, this could be an opportunity worth exploring.

3. Bank of Nova Scotia is a low-risk and high-yield turnaround

The Bank of Nova Scotia, often abbreviated as Scotiabank, is among the biggest financial institutions in Canada. Due to stringent banking rules in Canada, the market has established stronghold positions for its leading banks, and this regulation has predominantly fostered a cautious approach in institutions like Scotiabank.

This particular stock stands out because it provides an appealing 5.7% return through its dividends. Notably, this company has been consistently paying out dividends since 1833. Despite being a reliable choice for investors due to its long history of regular dividend payments, it’s important to note that the stock isn’t currently operating at peak performance.

Initially, Scotiabank aimed to stand out by concentrating on Central and South American regions when seeking growth beyond its Canadian base. Unfortunately, this strategy didn’t go as planned, prompting the bank to rethink its approach. Now, it is pulling back from weaker markets, focusing more on stronger ones, and increasing its presence in the United States. This transformation process for Scotiabank continues, making it a tale of revival, and it appears to be yielding positive results. Notably, the bank temporarily halted dividend growth in 2024 but resumed it again in 2025.

Dividend options for all sorts of investors

Different investors may find varying appeal in the dividend stocks listed here. Those seeking a stable, high yield might be drawn to Federal Realty. For investors focusing on dividend growth, Visa could be an appealing choice. On the other hand, those interested in turnarounds might favor Bank of Nova Scotia.

2025-07-22 20:56

1. Federal Realty is boring and reliable

2. Visa is a dividend growth machine

3. Bank of Nova Scotia is a low-risk and high-yield turnaround

Dividend options for all sorts of investors

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