One of the best ways to build long-term wealth is to find a handful of high-quality businesses, buy them when they’re cheap, and then hold them for decades. That’s it. You don’t need to trade in and out of positions, follow every headline, or guess what the Bank of Canada will do next. You just need to find high-quality stocks to buy, especially ones that pay consistent dividends, and have the discipline to hold them.
That’s why dividend stocks are so popular. You’re not just getting paid to hold the stock; you’re building a growing stream of income, one that becomes more powerful over time as you reinvest it, compound it, and let your capital work for you.
And the best dividend stocks aren’t just high yielders. They’re dependable. They generate tonnes of cash flow. They own long-life assets in essential industries. And they’ve proven time and again that they can continue paying investors, even in the most uncertain environments.
So if you’re looking for high-quality dividend stocks that can help boost your passive income, here are two of the best stocks to buy now and hold forever.
A top Canadian utility stock
If you’re looking for high-quality dividend stocks that are reliable and can continue increasing their dividend payments for years to come, there’s no question that one of the best is Emera (TSX:EMA).
Emera owns regulated utilities such as power lines, gas systems and transmission infrastructure. It’s not the most exciting business, but it provides essential services that keep our homes running and businesses operating. These assets don’t go out of style, and they’re not optional. Whether the economy is booming or in a recession, people still pay their utility bills.
That’s what makes Emera so attractive. The business is low-risk by design. The vast majority of its revenue is regulated, meaning it earns a predictable return every year. And that predictable return allows it to constantly increase the cash it returns to investors, which is why it has such a long track record of steadily growing its dividend, even through periods of economic turbulence.
It’s certainly not a stock that’s going to double in a year. However, that’s not what it’s supposed to do. Utility stocks like Emera are all about consistency. They are some of the best dividend stocks to buy, because they quietly do their job in the background while sending you passive income quarter after quarter, year after year.
And when you hold it long enough and reinvest that income, the compounding effect becomes significant, especially if you own the stock inside a TFSA, where every cent of that income is tax-free.
One of the best high-yield dividend stocks to buy now
In addition to Emera, another high-quality Canadian stock that also generates significant and recurring cash flow each year is Telus (TSX:T), the impressive telecom stock.
Telecom stocks aren’t as low-risk as a utility; no stock is really. However, the telecom sector is every bit as essential in today’s world.
Telus provides its customers with wireless service, internet, and data infrastructure, which in today’s world are essential for communication. Whether you’re running a business, working from home, or just living a modern lifestyle, you rely on the services Telus provides every single day.
That’s what gives the company so much stability. It operates in an industry with high barriers to entry and long-term customer relationships. And because of its scale and efficient operations, Telus generates massive amounts of recurring cash flow.
In addition to its core telecom business, Telus has also been expanding into adjacent industries like healthcare and agriculture tech – industries that benefit from digital infrastructure but are still in the early stages of transformation. These investments may take time to scale, but they show that Telus is focused on building long-term value, not just collecting phone bills.
Most importantly, though, especially for passive income seekers, is that Telus is returning a tonne of cash to investors. In fact, right now, it’s offering a current yield of more than 7.5%.
So if you’re looking for high-quality stocks to buy now that can boost your passive income for years to come, there’s no question Telus is one of the best to consider.
