Want Decades of Passive Income? Buy and Hold These 3 Canadian Stocks for the Years Ahead

The key to enjoying long-term passive income from stocks is to focus on the quality of the business over the size of the dividend yield. It is much better to buy a stock that has a sustainable (and hopefully growing) dividend than own a stock with an elevated yield that may be cut.

Luckily, there are many quality dividend stocks that Canadians can pick from. If you want passive income for the long term, a $10,000 investment in each of these three Canadian stocks would earn a combined $1,113.51 per year.

Canadian Natural Resources: A legend for passive income

While Canadian Natural Resources (TSX: CNQ) operates in the cyclical energy industry, it certainly has a business that could last the ages. It is the largest energy producer in Canada.

Not only that, but it has one of the largest energy reserves of any company in the world. It has over 30 years of proven reserves in stock.

It does not need to invest substantially in exploration. Likewise, it has dialled in an efficient, factory-like production model. As a result, it can generate substantial free cash flows, even when energy prices dip.

Canadian Natural has grown its dividend by 21% compounded annual rate for 25 consecutive years. It yields 5.09% right now. A $10,000 investment would earn $127.49 of quarterly passive income, or $509.95 annually.

Fortis: Safe and steady passive income

If you want resilience in your passive income, Fortis (TSX: FTS) is probably one of the safest stocks in Canada. It is the safest of the safe. 99% of its business is regulated. That means that it provides stable, safe service, and it collects reliable returns.

It operates transmission and distribution utilities. While it has some volume risk, people need power and gas to heat/cool their homes regardless of the economic environment.

Fortis manages its balance sheet with incredible prudence. While it carries a lot of debt, that debt is long-dated and laddered appropriately for a business of its size.

Fortis is growing by about 5-6% a year. It is a dividend knight. Fortis has increased its dividend for 51 consecutive years. It expects to grow its dividend by a 4-6% annual growth rate.

This passive-income stock yields 3.8%. If you put $10,000 in Fortis stock, you’d earn $94.71 of quarterly passive income, or $378.84. annually.

EQB: A stock for dividends and growth

Another stock that could qualify for growth and passive income is EQB (TSX: EQB). It owns and operates Equitable Bank, which is Canada’s seventh-largest chartered bank. It happens to be the only Canadian major bank that is completely branchless and operates entirely online.

This approach allows it to operate at a lower cost and provide those savings to its customers. It also enables it to earn very strong returns on equity.

EQB’s online-only focus is gaining strong traction with a new generation of Canadians. That is why EQB is known as the challenger bank. It has steadily been taking market share from the incumbents.

EQB pays a 2.26% dividend yield. It has grown its dividend by a 20% compounded annual growth rate over the past 10 years. If you put $10,000 in EQB stock, you would earn $56.18 of quarterly passive income or $224.72 annually.

Prices as of June 24, 2025.