After last year’s spectacular rally, the TSX Composite Index has kicked off 2025 on a strong note, gaining about 3% year to date. Many dividend stocks delivered impressive gains in 2024, but not all of them have what it takes to sustain long-term growth. For investors seeking stable, high-quality companies that can thrive through market cycles, it’s important to focus on Canadian stocks with solid fundamentals and a long track record of robust earnings growth.
In this article, I’ll highlight two brilliant dividend-paying stocks that investors can buy now and hold for years without worrying about short-term market fluctuations.
Brookfield Asset Management stock
Brookfield Asset Management (TSX:BAM) is the first TSX stock you may want to add to your portfolio for attractive long-term returns. The company mainly focuses on long-term investments in real assets and essential service businesses and manages capital across renewable power, infrastructure, and private equity.
After ending 2024 with solid 46.5% gains, BAM stock already inched up by 13.5% so far in January 2025 to currently trade at $80.51 per share with a market cap of $39.2 billion. At the current market price, the stock offers a 2.4% annualized dividend yield.
Despite worries about slowing global economic growth, BAM’s recent financials look impressive. In the third quarter of 2024, the company registered a 14% YoY (year-over-year) increase in its fee-related earnings to US$644 million with the help of a 23% jump in its fee-bearing capital. During the quarter, it also raised US$21 billion in fresh capital as investors continued to show confidence in its growth strategies. Similarly, its net profit for the quarter jumped 10.1% YoY to US$544 million.
As Brookfield Asset Management continues to double down on energy transition, AI (artificial intelligence) infrastructure, and private credit, its long-term growth prospects remain solid, making it an appealing choice for investors to buy now and hold for the long term.
Canadian Imperial Bank stock
Another brilliant TSX stock you can consider buying now is Canadian Imperial Bank of Commerce (TSX:CM). With a market cap of $87.4 billion, it’s currently the fifth-largest bank in Canada. With a 49% jump in the last year, CM stock has outperformed the broader market and most of its peers by a big margin. It currently trades at $92.70 per share with an annualized dividend yield of 4.2%.
In its fiscal year 2024 (ended in October), Canadian Imperial Bank’s revenue surged 9.8% YoY to $25.6 billion, while its adjusted net profit climbed 13% from a year ago to $7.3 billion. To add optimism, the bank’s adjusted return on equity improved to 13.7%, reflecting its strong profitability and efficient capital utilization.
Moreover, Canadian Imperial Bank is continuing to expand its wealth management and commercial banking operations, with a sharp focus on high-net-worth clients. To enhance customer experience and operational efficiency further, the bank is also investing in AI-equipped digital solutions. In addition to its strong fundamentals, CM stock’s strong dividend history and improving credit quality make it an amazing stock for long-term investors.
