Want Decades of Passive Income? 3 Stocks to Buy Right Now

These three stocks offer a nice blend of dividend growth, yield, and inflation protection and trade at reasonable valuations.

| More on:
Middle aged man drinks coffee

Source: Getty Images

Looking to build a reliable stream of income for the long haul? The secret lies in owning stocks that deliver consistent — and ideally growing — dividends. These companies tend to have durable business models, strong cash flow, and management teams committed to rewarding shareholders.

If you’re aiming for decades of passive income, here are three top Canadian dividend stocks worth buying today.

Manulife Financial: Global reach, growing dividends

Manulife Financial (TSX:MFC) is a solid pick for income investors seeking long-term stability and growth. As one of Canada’s largest financial services companies, Manulife operates globally across insurance, wealth management, and asset management — with a particularly strong and growing presence in Asia, a region positioned for decades of economic expansion.

At a recent share price of $42.58, Manulife yields around 4.1%, supported by a conservative payout ratio of about 43% of adjusted earnings. This leaves room for continued dividend increases and reinvestment in its core businesses. 

Over the past 10 years, it has raised its dividend at a compound annual rate of 10.9%, with the latest increase coming in at 10% earlier this year — signaling continued confidence in earnings growth.

Analysts see the stock as undervalued by over 10%, giving investors a bit of a margin of safety along with solid income and long-term upside.

Pembina Pipeline: High yield with steady cash flow

For those prioritizing higher upfront income, Pembina Pipeline (TSX:PPL) is a top-tier choice. Offering a dividend yield of around 5.6%, Pembina provides one of the more generous payouts among blue-chip Canadian stocks

At its current price of $50.81, shares also appear undervalued by roughly 15%, based on analyst estimates.

Pembina’s operations span a wide range of energy infrastructure — natural gas, natural gas liquids, and crude oil — across a full value chain. 

Its revenue is largely fee-based and backed by long-term contracts, leading to predictable cash flow that comfortably supports its dividend. In fact, the company has been paying dividends consistently since at least 2006, with a record of steady increases.

For passive income seekers, Pembina offers a rare mix of yield, reliability, and inflation protection, making it ideal for a long-term, buy-and-hold strategy.

Brookfield Infrastructure Partners: Inflation-proof income

Brookfield Infrastructure Partners L.P. (TSX: BIP.UN) rounds out the list with a global infrastructure portfolio designed to generate resilient, inflation-hedged cash flows. 

The company owns and operates essential assets like utilities, pipelines, toll roads, and data infrastructure across several continents. About 90% of its cash flow is either regulated or indexed to inflation, making it highly defensive during economic uncertainty.

At a current share price around $44, BIP.UN offers a dividend yield of approximately 5.3%, and management aims to grow that distribution by 5–9% annually. While its payout ratio may seem elevated, its strategy of capital recycling and operational efficiency keeps cash flows strong and sustainable.

Analysts estimate the stock is trading at a discount of roughly 19%, giving investors attractive total return potential alongside dependable income.

The investor takeaway

Manulife, Pembina, and Brookfield Infrastructure offer a nice blend of dividend growth, yield, and inflation protection. And they share a common strength: the potential to deliver decades of passive income. For investors looking to build long-term wealth through dividends, these are three solid buys right now and worth buying more of during market corrections.

Fool contributor Kay Ng has positions in Brookfield Infrastructure Partners and Pembina Pipeline. The Motley Fool recommends Brookfield Infrastructure Partners and Pembina Pipeline. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Canadian dollars in a magnifying glass
Dividend Stocks

Monthly Income: Top Dividend Stocks to Buy in December

These two top Canadian dividend stocks could add steady monthly income to your portfolio while offering room to grow.

Read more »

dividends grow over time
Dividend Stocks

1 Canadian Stock to Dominate Your Portfolio in 2026

Down almost 40% from all-time highs, goeasy is a Canadian stock that offers significant upside potential to shareholders.

Read more »

Pile of Canadian dollar bills in various denominations
Dividend Stocks

1 Way to Use a TFSA to Earn $250 Monthly Income

You can generate $250 worth of monthly tax-free TFSA income with ETFs like BMO Canadian Dividend ETF (TSX:ZDV).

Read more »

Colored pins on calendar showing a month
Dividend Stocks

This TSX Dividend Stock Pays Cash Every Single Month

If you’re looking for a top TSX dividend stock to buy now that happens to pay its dividend every single…

Read more »

the word REIT is an acronym for real estate investment trust
Dividend Stocks

High Yield, Low Stress: 3 Income Stocks Ideal for Retirees

These high yield income stocks have solid fundamentals, steady cash flows, strong balance sheets, and sustainable payout ratios.

Read more »

Canadian Red maple leaves seamless wallpaper pattern
Dividend Stocks

CRA Just Released New 2026 Tax Brackets

New 2026 CRA tax brackets can cut “bracket creep” so plan around them to ensure more compounding, and consider Manulife…

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

TFSA Investors: Here’s the CRA’s Contribution Limit for 2026

New TFSA room is coming—here’s how a $7,000 2026 contribution and a simple ETF like XQQ can supercharge tax‑free growth.

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

On a Scale of 1 to 10, These Dividend Stocks Are Underrated

Restaurant Brands International (TSX:QSR) and another cheap dividend stock to buy.

Read more »