5 Canadian Dividend Stocks to Buy and Hold for the Next 20 Years

Investors can get dividends any time, but these five offer major returns that should stand the test of time.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 2, 2025 10:30 am EDT

| More on: CPBAMCPXFFHL

If you’re thinking about the long term, there are some Canadian dividend stocks worth locking in today. We’re talking about the kind of investments that you can sit on for the next 20 years, collecting income along the way without losing sleep at night. While no dividend stock is completely without risk, there are some that have stood the test of time and look set to keep doing just that. With that in mind, here are five Canadian stocks that offer strong dividends, solid business models, and the kind of staying power you want in a long-term portfolio.

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CP

Let’s start with Canadian Pacific Kansas City (TSX:CP). It’s not your typical high-yield dividend stock, with a current yield of just 0.91%. But that’s not the point here. CP is one of the most important railway operators in North America. After its merger with Kansas City Southern, it became the only railway that connects Canada, the United States, and Mexico. That’s a big deal.

As trade between these countries grows, CP stands to benefit. In its latest quarterly report, CP reported revenue of US$3.35 billion and adjusted diluted earnings per share (EPS) of US$0.93, beating analyst expectations. It’s not a flashy income play, but it’s one of the most dependable. The dividend may be low now, but with earnings set to grow over time, there’s a strong case for slow and steady income increases as part of a broader long-term growth story.

CPX

Now, onto something a bit more generous: Capital Power (TSX:CPX). This Edmonton-based dividend stock is in the power generation business, with a growing focus on cleaner energy sources. It offers an attractive dividend yield of 4.98%.

In its most recent earnings report, Capital Power delivered adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $326 million for the quarter and reaffirmed its guidance for 2025. What makes it particularly appealing is its consistent dividend growth and its ability to reinvest in renewable energy projects. It’s a dividend stock that provides income today and a path toward a greener, more valuable business tomorrow.

L

If you’re after a defensive stock, consider Loblaw Companies (TSX:L). Everyone needs groceries, and Loblaw has a strong grip on Canada’s food retail market through brands like Loblaws, Real Canadian Superstore, Shoppers Drug Mart, and No Frills.

Its dividend yield sits around 1.01%, which, again, isn’t thrilling on paper. But what you’re really buying here is consistency. In its latest earnings, Loblaw reported revenue of $14.53 billion, up from the previous year, and net earnings of $529 million. The dividend stock continues to grow, and it returns a piece of that to shareholders each quarter. It’s a great anchor for any long-term portfolio.

FFH

Then there’s Fairfax Financial Holdings (TSX:FFH). This is a bit of a different beast. It’s a holding company involved in insurance, reinsurance, and investment management. Think of it as a mini-Berkshire Hathaway with a Canadian twist. The dividend yield is modest at 1.01%, but the dividend stock’s real value lies in how it grows that underlying capital.

Fairfax recently posted record profits for the full year 2024, with net earnings of $5.9 billion. That kind of performance allows it to maintain a healthy balance sheet and distribute stable dividends, even in uncertain times. Plus, if you’re a believer in value investing, this might be your kind of stock.

BAM

Lastly, there’s Brookfield Asset Management (TSX:BAM). This is one of the biggest asset managers in the world, with operations in infrastructure, real estate, renewable energy, and private equity. It currently offers a dividend yield of 3.4%, and it’s the kind of business that benefits from scale.

With a market cap of over $121 billion, Brookfield has the ability to invest globally and generate long-term returns across economic cycles. Its last earnings report showed strong fee-related earnings and ongoing growth in assets under management. For dividend investors, Brookfield offers stability, global diversification, and steady income growth.

Bottom line

In short, if you’re building for the future, these are the kinds of dividend stocks you want in your corner. Dividend income today, growth for tomorrow, and the peace of mind that comes from owning names you won’t need to second-guess every quarter. For a 20-year hold, that’s exactly what you’re after.