Investors looking to generate substantial passive income could consider dividend stocks with high yields. However, as high yields and payouts are not guaranteed, one should consider fundamentally strong stocks with resilient distribution and profitable growth for generating worry-free income for decades.
Against this background, here are two high-yield dividend stocks investors can buy and hold for a decade. These Canadian stocks offer sustainable payouts in addition to high yields.
High-yield dividend stock #1
Among the leading Canadian stocks offering high yields, Enbridge (TSX:ENB) is a no-brainer to buy and hold for a decade. This energy infrastructure company has a stellar 70-year track record of dividend payments and has raised its dividend consecutively for an impressive 30 years. Currently, it offers a high yield of 6.2%.
Enbridge’s diversified revenue base, contractual arrangements, high utilization of its system, and regulated cost-of-service tolling frameworks enable it to generate resilient earnings and distributable cash flows (DCF) across all market conditions. Also, Enbridge remains relatively immune to commodity price fluctuations, which adds further stability to its business.
Enbridge is well-positioned for long-term growth driven by higher utilization of its core liquid pipelines. Beyond traditional energy, the company is expanding its footprint in renewable energy and utility-like infrastructure to capitalize on the global energy transition. The company’s secured capital projects and focus on strategic acquisitions will further boost its growth prospects, supporting revenue and dividend payouts.
Thanks to its resilient business and diversified operations, Enbridge could continue to pay and increase its dividend in the coming years. Moreover, its earnings and DCF per share will likely expand by about 5% annually in the long term, supporting higher future payouts.
High-yield dividend stock #2
Telus (TSX:T) is another reliable, high-yield dividend stock investors could buy and hold for a decade. Canada’s leading wireless service provider is known for its ability to grow profitably, stellar dividend growth history, sustainable payout ratio, and impressive yield. All these factors make Telus a compelling bet for passive-income investors.
The Canadian communication giant pays a quarterly dividend of $0.402 per share, translating into a high yield of about 7.1% based on the closing price of $22.72 (as of March 7, 2025). Thanks to its growing earnings base, the telecom company has raised its dividend 27 times since 2011 and returned more than $21 billion in dividends to its shareholders since 2004. Further, Telus expects an annual dividend increase of 7-10% in 2025.
Telus is well-positioned to maintain its dividend growth, benefitting from profitably expanding its user base and maintaining a low churn rate. Telus has strengthened its network reliability and coverage by enhancing its network through spectrum acquisitions and infrastructure upgrades. These efforts help attract new customers, fueling revenue growth. Moreover, the expansion of its 5G and PureFibre network augurs well for growth.
Beyond telecom, Telus has diversified into digital services, including cloud computing, artificial intelligence-driven automation, and cybersecurity. This expansion aligns with the digital transformation, positioning it well for long-term growth.
Overall, Telus is well-positioned to deliver profitable growth, which will support higher dividend payouts.
