Holding some high quality dividend shares in your portfolio all the time pays off nicely in the long term. Whereas short-term macroeconomic uncertainties might considerably improve the volatility in high-growth shares, dividend shares often are typically comparatively secure, even in a troublesome financial atmosphere, and enable you to earn good-looking passive earnings.

On this article, I’ll speak about one engaging dividend inventory in Canada with unbelievable long-term upside potential you should purchase immediately and maintain eternally.

A pretty dividend inventory to purchase in Canada now

One of the crucial vital issues you must take a look at whereas selecting a dividend inventory is its long-term basic outlook and monetary place. This guideline will enable you to filter out weak shares that would doubtlessly improve your threat profile.

Conserving that in thoughts, Gibson Power (TSX:GEI) may very well be value contemplating in 2023. This Calgary-headquartered vitality firm primarily focuses on offering storage and processing infrastructure for crude oil and associated refined merchandise. Gibson presently has a market cap of $3.2 billion, as its inventory trades at $22.25 per share with about 6% year-to-date losses. It distributes its dividend payouts each quarter and provides a beautiful annualized dividend yield of round 7% on the present market worth.

Now, let’s take a better take a look at some key components that make GEI a terrific Canadian dividend inventory to put money into for the long run.

Key constructive components

In 2020, costs of vitality merchandise nosedived on demand issues amid COVID-19-related shutdowns, which badly damage the long-term monetary development developments of most vitality corporations. Nevertheless, that was not the case with Gibson Power. Regardless of dealing with world pandemic-related challenges in between, its income jumped 81% within the 5 years between 2017 and 2022 to $11 billion. Throughout the identical 5 years, the vitality agency’s adjusted earnings posted an impressive development of 617% to $1.50 per share with improved margins.

Moreover that, Gibson has been rising its dividends for the final 4 consecutive years, reflecting its administration’s dedication to reward its loyal buyers even in robust financial occasions.

Within the final seven to eight years, Gibson Power has actively been engaged in repositioning itself as an vitality infrastructure-focused firm. And these efforts have began paying off lately, which clearly displays in its earnings development lately. I anticipate Gibson Power’s already stable monetary development developments to enhance additional within the years to come back because it targets deploying $150 million to $200 million in infrastructure capital yearly in the long run.

Furthermore, its high-quality contract construction, strong steadiness sheet, well-defined capital-funding technique, and sustainable dividends make it a terrific dividend-paying inventory to put money into for the long run.

Backside line

By investing round $22,250 in Gibson Power to purchase 1,000 of its shares, you’ll be able to anticipate to earn $390 in quarterly passive earnings from its dividends, which is equal to $1,560 per yr. That mentioned, you need to all the time attempt to diversify your portfolio by together with extra such high quality dividend shares to it as a substitute of counting on only one or two shares.