Investing with a long-term mindset shouldn’t be complicated. While many investors chase the next big thing, you can build real wealth by holding strong dividend-paying stocks for decades. In Canada, two standout options for a 20-year hold are Exchange Income (TSX: EIF) and Capital Power (TSX: CPX). Both offer solid income, proven growth, and the kind of reliability that helps you sleep at night.
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EIF
Exchange Income has a unique business model. It owns a diversified mix of companies in aviation and specialized manufacturing. These aren’t flashy industries, but they are essential. From air ambulance services to aircraft parts and surveillance systems, EIF plays a key role in everyday operations across Canada and beyond. That helps it generate consistent earnings even in uncertain times.
In the first quarter of 2025, Exchange Income brought in $668 million in revenue. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) hit $130 million, and while net income came in at $7 million, its adjusted earnings were higher at $14 million. The dividend stock generated $81 million in free cash flow and continues to maintain a healthy payout ratio. Despite a slight miss on earnings per share, which came in at $0.28, EIF reaffirmed its full-year guidance and continued to raise its dividend, something it has done for more than 20 years.
Currently, it trades at about $57 per share. Over the last 12 months, the stock is up nearly 37%, and over the past three years, it has returned close to 47%. That’s well ahead of the broader TSX. Its current yield sits around 4.5%, offering investors a strong monthly income stream. Because its businesses are backed by long-term contracts, it offers some insulation from market swings. That kind of consistency makes it a strong long-term hold.
Capital Power
Capital Power is another great pick for a 20-year dividend play. It’s a power producer with a growing portfolio that spans natural gas, solar, wind, and battery storage. That mix positions it well for a world shifting toward cleaner energy, without sacrificing the reliability of base load power. Its business model is built on long-term contracts, giving it predictable revenue and the ability to plan far ahead.
In the most recent quarter, Capital Power reported $988 million in revenue. Net income hit $150 million, with adjusted EBITDA at $367 million. Funds from operations came in at $218 million, and operating cash flow was $210 million. The dividend stock declared a quarterly dividend of $0.6519 per share, up from $0.615 a year earlier. Strong fundamentals back this growth.
At a share price of around $56, the stock offers a dividend yield just over 4.7%. Capital Power also recently expanded into the U.S. market, acquiring gas-fired plants and building solar projects in North Carolina. These assets will add more contracted cash flow over the coming years. And with adjusted funds from operations per share rising to $1.57, it’s clear the dividend stock is growing both efficiently and sustainably.
Bottom line
Holding both of these stocks in a Tax-Free Savings Account (TFSA) could offer investors diversified monthly income. One operates in aviation and manufacturing, the other in power generation. Both are deeply rooted in industries that aren’t going away anytime soon. And both have made it clear that returning capital to shareholders is a priority. At present, a $10,000 investment divided equally could bring in $461.97 in annual dividends!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | INVESTMENT TOTAL |
|---|---|---|---|---|---|---|
| EIF | $57.26 | 87 | $2.64 | $229.68 | Monthly | $4,981.62 |
| CPX | $56.09 | 89 | $2.61 | $232.29 | Quarterly | $4,992.01 |
In the end, long-term investing isn’t about guessing what will double next year. It’s about choosing companies that grow steadily, pay you to own them, and stick around through every market twist. Exchange Income and Capital Power offer just that. Buy them, hold them, and enjoy the dividends along the way.
