Whether the stock market is going up or down, it feels good to know your money is working for you. That is the whole idea behind passive income. You invest in the right dividend stocks with solid fundamentals, and over time they send you a steady stream of income without you having to lift a finger. The goal isn’t quick wealth, but rather reliable income that could support your lifestyle over the long term.
In this article, I’m going to highlight two top TSX dividend stocks that could be your ticket to decades of passive income.
TD Bank stock
A strong choice for long-term passive income could be Toronto-Dominion Bank (TSX:TD). As one of the biggest banks in Canada, it runs a wide network of personal and business banking services across North America, along with wealth management and capital markets operations. TD stock has climbed more than 27% over the past year and now trades at $95.98 per share. It has a market cap of $166.6 billion and pays a quarterly dividend that works out to a 4.3% annualized yield.
Even with some noise around its U.S. operations and compliance-related costs last year, TD is continuing to focus on its core strengths. In the most recent quarter (ended in April), the bank’s revenue rose 1% YoY (year over year) to $14 billion. More importantly, its Canadian banking arm continued to grow loans and deposits, while digital adoption and credit card activity also gained traction.
In recent quarters, TD has taken big steps to restructure its U.S. balance sheet and simplify how it operates. It’s also heavily investing in its AML (anti-money laundering) program and system upgrades. These may sound like behind-the-scenes moves, but they’re key for building a smoother, stronger business for the future.
With over $2 trillion in assets and a capital position that leaves enough room for continued dividend growth, TD Bank has the potential to deliver both income and stability in the years ahead.
Great-West Lifeco stock
The second dividend stock that fits right into a passive income plan is Great-West Lifeco (TSX:GWO). This Winnipeg-based insurance and financial services firm has been delivering consistent results across its core segments like wealth management, retirement plans, and group benefits.
After surging 25% over the last year, GWO stock is currently trading at $50.47 per share, giving it a market cap of $46.8 billion. And it offers a quarterly dividend with a 4.8% annualized yield.
In the first quarter of 2025, Great-West posted a nearly 2% YoY increase in its adjusted earnings to $1.11 per share, supported largely by growth in its retirement and wealth businesses, especially in the U.S. market. The company is also keeping capital levels strong with a life insurance capital adequacy test ratio of 130% and $2.5 billion in cash.
With more than $3 trillion in client assets and a long track record of stable operations, this dividend-paying stock could keep rewarding investors with income streams for years. That’s why long-term investors looking for reliability find it worth holding through the market’s ups and downs.
