Following an impressive 18% jump in 2024, the TSX Composite has entered 2025 on a mixed note. While easing inflation and the prospect of further rate cuts are giving investors reasons for optimism, uncertainties surrounding trade and geopolitical tensions have introduced new risks to the market. In this environment, dividend stalwarts could be an ideal choice for investors seeking stability and reliable income. Many such companies on the Toronto Stock Exchange have strong growth prospects and a long track record of consistent payouts.
In this article, I’ll highlight two such Canadian dividend stalwarts that could help you build a steady income stream and achieve long-term financial security, even in challenging market conditions.
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Transcontinental stock
For investors looking for a lifetime of dividend income, Transcontinental (TSX:TCL.A) could be a great stock to own. It mainly focuses on providing flexible packaging and retail services solutions to its customers. With a market capitalization of $1.5 billion and a current annualized dividend yield of about 5%, this Montréal-based stock currently trades at $17.88 per share after rallying by 31.2% over the last year.
The company closed its fiscal year 2024 (ended in October) on a strong note, posting annual revenues of $2.81 billion. While this figure marked a slight 4.3% YoY (year-over-year) decline, Transcontinental demonstrated resilience by boosting its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) margin from 9.7% to 11.4%. This improvement highlighted the effectiveness of its cost-cutting initiatives.
In the latest quarter, Transcontinental’s packaging segment emerged as a key growth driver as this segment delivered a 14.2% annual rise in adjusted EBITDA to $262.2 million with the help of investments in sustainable packaging solutions. The company’s retail services and printing operations also showed strength, with in-store marketing activities and the rollout of innovative products contributing to a 2.1% EBITDA increase on a YoY basis.
As declining interest rates create a favourable economic environment, Transcontinental could continue to deliver sustainable growth and reward its investors with attractive dividends, making it worth considering for long-term investors.
Canadian Natural stock
Canadian Natural Resources (TSX:CNQ) could be another valuable addition to a long-term income portfolio in 2025. As one of Canada’s largest energy companies, it has a well-diversified portfolio of oil sands, natural gas, and conventional crude oil assets. CNQ stock currently trades at $46.97 per share with a market cap of $97.6 billion after climbing by around 10% over the last month. At this market price, it offers a 4.8% annualized dividend yield.
In the third quarter of 2024, Canadian Natural achieved an average production of about 1.36 million barrels of oil equivalent per day, with its synthetic crude oil production hitting a record 529,000 barrels per day in August. The company’s financial performance also remained solid, with its adjusted quarterly net profit at $2.1 billion and cash flows from operations at $3 billion for the quarter.
This strong performance encouraged the company to announce a 7% YoY dividend hike, marking the 25th consecutive year of increases. In addition to its strong asset base, Canadian Natural’s strategic acquisitions could help it deliver further growth in the years to come.
