2 Dividend Stocks to Buy Now for a Lifetime of Passive Income

If you’re looking for a lifetime of passive income, you may want to consider starting with high-quality, dividend-paying stocks like these.

Jitendra Parashar

Author Bio Jitendra Parashar is a financial journalist who has been writing for The Motley Fool Canada since June 2020. With more than 13 years of experience in financial journalism, equity research, and market analysis, he helps investors understand market developments and identify long-term investment opportunities. Before joining The Motley Fool Canada, Jitendra spent several years at Market Realist covering U.S. equities, major economic developments, and developments in the automotive and technology industries. He also worked in commodity and currency research at brokerage firms, gaining insight into how economic trends, central bank decisions, and geopolitical events influence financial markets. Jitendra writes for beginner investors, dividend seekers, and Canadians looking to build wealth over the long term. He also contributes to the daily TSX Today series, explaining key Canadian market developments and highlighting news investors should watch. Based in India, Jitendra follows Canadian and U.S. markets closely. Outside of work, he enjoys travelling in the Himalayas, street and nature photography, and exploring programming and artificial intelligence. Education MBA in Finance and International Business Bachelor's degree in Journalism Areas of Expertise Canadian and U.S. financial markets, long-term equity investing, dividend investing, macroeconomic and geopolitical trends, automotive stocks, emerging technologies, and artificial intelligence. Social Media Profiles LinkedIn Muck Rack Favorite Investment Quote “Simplicity is the master key to financial success.” — John C. Bogle

Published March 27, 2025 8:30 pm EDT

What if you had a reliable source of passive income that could take care of your expenses, support your retirement, or give you the freedom to live life on your terms? That vision is possible, and it starts with owning the right dividend stocks. On the TSX, several fundamentally strong stocks with predictable cash flow and a track record of rewarding shareholders could act like income machines and provide strong returns in the long run.

In this article, I’ll reveal two Canadian dividend stocks that could become core holdings for anyone serious about creating lasting passive income.

Man holds Canadian dollars in differing amounts — Source: Getty Images

Manulife Financial stock

One of the strong dividend stocks you can consider right now is Manulife Financial (TSX: MFC), a company that’s become a go-to name for income investors who want both stability and long-term growth. This Toronto-based insurance and financial services giant offers a mix of life insurance, wealth management, and investment products across Canada, Asia, and the United States.

MFC stock currently trades at $44.90 per share with a market cap of $77.3 billion. Investors who own the stock are also rewarded with a 3.9% annualized dividend yield, paid on a quarterly basis. And over the past year, Manulife stock has surged more than 36%.

Last year, the insurance giant posted record core earnings of $7.2 billion, reflecting an 8% YoY (year-over-year) increase. Manulife also delivered $1.9 billion in core earnings in the fourth quarter alone, up 6% from the same quarter of 2023. Similarly, its 2024 core earnings rose 11% YoY to hit $3.87 per share due mainly to strong growth in its Asia and the wealth and asset management segment.

Manulife’s commitment to shareholders makes it even more appealing. In 2024, it returned $6.1 billion in capital to shareholders and announced a 10% dividend increase. With solid earnings momentum, international growth, and consistent dividend hikes, MFC stock looks like a strong choice for anyone looking for a reliable source for a lifetime of passive income.

TC Energy stock

TC Energy (TSX: TRP) could be another fundamentally solid dividend stock long-term investors may want to add to their watchlist right now. This Calgary-based energy company is best known for its massive natural gas pipeline network, which supplies over 30% of the natural gas used across North America. In addition, it also has investments in power generation and energy storage.

After climbing by 40% over the last 12 months, TRP stock currently trades at $69.79 per share, with a market cap of $72.5 billion. It also rewards shareholders with an impressive 4.9% annualized dividend yield.

TC Energy’s comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) fell slightly to $2.6 billion in the December quarter. Nevertheless, its full-year 2024 EBITDA from continuing operations rose 6% YoY to $10 billion with new projects going live and higher volumes on key pipeline systems. This strong financial growth encouraged TC Energy’s management to raise dividends for the 25th straight year.

With its Southeast Gateway pipeline nearing service and more projects in the works, TC Energy’s long-term outlook remains strong, making it an excellent dividend stock to buy now and hold for years.