Investors seeking dependable dividend income on the TSX have numerous options to consider. Several Canadian companies stand out for their commitment to regular dividend payments and even raising them over time, making them appealing choices for those aiming to build a passive income stream. However, here I’ll focus on dividend stocks renowned for their consistent dividend history and promising future payout potential.
Against this background, here are three Canadian dividend stocks to buy and hold for the next 20 years for worry-free income.
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Canadian dividend stock #1
Brookfield Renewable Partners (TSX: BEP.UN) is one of the top Canadian dividend stocks to buy and hold for the next two decades. With its diverse renewable energy assets and significant operating capacity, the company is well-positioned to benefit from rising global demand for clean energy, driven by data centres, industrial expansion, and mining. Further, its long-term, inflation-linked contracts and robust development pipeline add stability and offer strong visibility for future growth and reliable income.
Over the past 14 years, Brookfield has consistently increased its distribution by at least 5% annually and currently offers a solid yield of 5.9%. The company’s low-cost operations, stable cash flows from contracted assets, and efficient asset recycling strategy show its ability to sustain and grow dividends. Management targets an attractive long-term total return of 12% to 15% annually. This suggests strong dividend growth potential and solid capital appreciation, making it a reliable long-term investment.
Canadian dividend stock #2
Telus (TSX: T) is another top stock for investors seeking dependable passive income over the next 20 years. The Canadian communications giant has a robust record of dividend payments and growth. It has distributed over $21 billion in dividends since 2004 and has raised it 27 times since 2011. Currently, Telus stock offers a high yield of over 7%.
Telus aims to grow its dividend by 3–8% annually through 2028 while maintaining a sustainable payout ratio of 60–75% of free cash flow. Telus’s ability to expand its subscriber base profitably, low customer churn, and disciplined capital spending will help the company to consistently pay and increase its dividend.
Its investments in 5G infrastructure, network upgrades, and spectrum acquisition position the telecom giant for sustained competitiveness. Furthermore, its efforts to diversify revenue streams and reduce costs further enhance its stability, positioning it well to pay and increase its dividend in the years to come.
Canadian dividend stock #3
AltaGas (TSX: ALA) could be another reliable dividend stock to buy and hold for the next 20 years. It operates energy infrastructure assets that generate solid earnings to support its payouts. Its rate-regulated utilities business generates low-risk earnings and adds stability. Looking ahead, customer additions, system upgrades, and rate base expansion will support future earnings and dividend payments.
Notably, AltaGas expects this base to grow at a compound annual growth rate (CAGR) of 8% through 2029, laying the foundation for continued dividend increases.
The company’s Midstream business adds another layer of resilience, driven by increased throughput, cost control, and long-term contracts. Additionally, AltaGas is focused on deleveraging its balance sheet, which bodes well for future growth.
AltaGas’ normalized earnings per share (EPS) have grown at a 14% CAGR over the past seven years, while dividends have increased at a 6% CAGR since 2021. Management targets 5–7% annual dividend growth through 2030, with a sustainable payout ratio of 50–60%.
With a diverse business mix, strong infrastructure, and exposure to high-demand export markets, AltaGas is well-positioned to benefit from long-term demand trends.
