Despite the recent record-breaking rally in the TSX benchmark, Canadian dividend stocks still offer some of the best opportunities for long-term investors. While growth-focused stocks have led much of the charge, many income-generating stocks remain reasonably valued and continue to reward shareholders with dependable cash flow.
If you have some savings to invest right now, dividend stocks could offer the perfect mix of stability and upside. In this article, I’ll highlight two of the smartest dividend stocks to consider with a $10,000 investment today and why they could anchor your portfolio for years to come.
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Great-West Lifeco stock
First up is Great-West Lifeco (TSX:GWO), a Winnipeg-headquartered financial services player. The company does business across Canada, the U.S., and Europe through familiar brands like Canada Life, Empower, and Irish Life. Through these brands, it offers insurance, retirement, and wealth management solutions, and currently has more than $3 trillion in total client assets.
GWO stock currently trades at $51.08 per share with a market cap of $47.4 billion. At this market price, it offers a healthy 4.8% annualized dividend yield.
Over the past year, this dividend stock has climbed about 31%, supported by its solid earnings and consistent capital returns. In the first quarter of 2025, the company’s base earnings rose 5% YoY (year-over-year) to $1 billion. This growth came largely from its retirement and wealth segments, especially in the U.S., where its net earnings jumped 32% YoY. Notably, its U.S. arm also added 270,000 new plan participants.
Despite macroeconomic uncertainties, the company continues to focus on high-growth, capital-efficient areas while maintaining a strong balance sheet. Given these strong fundamentals, Great-West Lifeco looks well-prepared to keep delivering reliable returns. If you’re looking to invest in a dividend stock with staying power, GWO stock is certainly worth considering.
TC Energy stock
TC Energy (TSX:TRP) is another strong contender for long-term income seekers. The Calgary-based energy giant has a large network of pipelines to move natural gas across North America. In addition, it generates power from wind, solar, nuclear, and natural gas, and is also involved in the energy storage business. TRP stock currently trades at $64.80 per share with a market cap of $67.4 billion and offers an attractive 5.2% annualized dividend yield.
Over the past year, TC Energy stock has climbed more than 33%, despite some short-term weakness in recent weeks. This resilience is partly due to its reliable earnings base, where 97% of comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) comes from regulated or long-term contracted assets.
In the first quarter of 2025, the company posted $2.7 billion in comparable EBITDA and $983 million in comparable earnings. While those figures were slightly lower on a YoY basis, TC Energy still reaffirmed its full-year outlook, backed by major projects like the Southeast Gateway pipeline and the upcoming Northwoods expansion.
The company expects to bring $8.5 billion worth of projects into service this year, many of which are progressing well under budget. This pipeline of growth, backed by stable cash flow, makes TRP stock a strong option for long-term, dividend-focused investors.
