If you’re looking to set yourself up for decades of passive income, the smartest approach is to invest in fundamentally strong stocks that have a solid track record of generating reliable cash flow and rewarding shareholders through stable and growing dividends. That’s especially important in a volatile macroeconomic environment where inflation and interest rates are still keeping investors on edge.
In this article, I’ll break down two TSX-listed dividend stocks that stand out for their long-term passive-income potential and explain why they deserve a spot in any income-focused portfolio.
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Power Corporation stock
Power Corporation of Canada (TSX:POW) might be worth a closer look if you’re building your passive-income stream for the long term. This Montreal-based holding firm has a strong focus on insurance, retirement, and investment services.
As of now, POW stock trades at $52.13 per share, giving it a market cap of $30.6 billion. Its share price has climbed about 34% over the last year and nearly 121% over the past five years, clearly reflecting how consistent and rewarding this stock has been over time. The company recently declared a quarterly dividend of $0.6125 per share, giving it a healthy annualized dividend yield of 4.7%.
In the first quarter of 2025, Power Corporation’s adjusted earnings rose 12% YoY (year over year) to $1.22 per share. This growth came from solid contributions across its core businesses, especially Great-West Lifeco and IGM Financial, both of which benefited from strength in their retirement and wealth segments.
What makes this stock really attractive for long-term investors is its consistent focus on effectively managing capital. In the latest quarter alone, Power Corporation repurchased 3 million shares for $135 million, which shows confidence in its long-term value.
Pembina Pipeline stock
Pembina Pipeline (TSX:PPL) could be another smart pick for long-term passive income, especially if you’re looking for growing dividends and exposure to the energy infrastructure industry. The shares of this Calgary-based energy transportation and midstream firm are currently trading at $50.07 apiece with a market cap of $29 billion. Over the past five years, PPL stock has risen more than 55% and currently offers an annualized dividend yield of 5.7%.
In the first quarter, Pembina posted a 10% YoY rise in its adjusted earnings to $0.80 per share, while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) jumped 12% to $1.17 billion. That lift came mainly from higher contributions across all three of its business segments. For example, its pipelines division saw better tolls and increased volumes on its Peace and Nipisi systems. Meanwhile, its recent acquisitions, including Enbridge’s stake in Alliance and Aux Sable, also played a key role.
Moreover, Pembina’s management remains confident about hitting the midpoint of its 2025 adjusted EBITDA guidance range of $4.2 billion to $4.5 billion. Stable demand across the Western Canadian Sedimentary Basin and a long pipeline of under-construction projects are expected to support this outlook.
Notably, the company also recently signed new long-term agreements with a major Montney producer, which could lead to even better utilization ahead. For income-focused investors, Pembina’s rising dividends, cash flow visibility, and long-term contracts make it a reliable stock to hold onto for years.
