Dividend investing has various options. There are dividend ETFs, dividend growth stocks, dividend reinvestment plans (DRIP), high-yield stocks, and some stocks that cut dividends. Each has its benefits and an investing strategy. The conundrum is identifying which strategy is right for your investing needs.
If you are looking to build a sizeable passive income pool to supplement your income 10 years from now, these magnificent dividend stocks are worth considering.
Two magnificent stocks that could give good passive income 10 years from now
When you have time to stay invested, a low-yield stock with a high dividend growth rate can do wonders.
goeasy stock
goeasy (TSX:GSY) is a non-prime lender growing its business gradually in Canada while keeping credit risk in check. It is expanding its loan portfolio and allocating net interest income to reinvest in more loans and pay dividends. The size and risk of the loan portfolio determine its share price, and the total interest income earned determines the dividend amount. goeasy has been expanding successfully and growing dividends at a compounded annual growth rate (CAGR) of 30% in the last 11 years.
The high growth rate comes with high risk. The company can slow or pause the dividend growth if loan defaults rise, as they did in the 2009 Global Financial Crisis. The lender did not grow dividends between 2009 and 2014, but neither did it cut dividends.
Canada has capped the annual percentage rate (APR) at 35%, which has reduced goeasy’s interest income slightly, but not much. However, it can continue delivering strong double-digit dividend growth, as the loan portfolio increases while the charge-off rate remains within the targeted range of 8–10%.
Assuming goeasy grows its dividend at a 15% compounded annual growth rate (CAGR), the annual dividend can grow from $5.84 in 2025 to $6.72 in 2026 and $20.54 in 2034. A $20,000 investment today can buy you 106 shares of goeasy and earn you $711.90 in 2026 and $2,177.70 in 2034.
| Year | goeasy’s annual dividend per share at a 15% CAGR* | Annual dividend income on 106 shares of goeasy |
| 2025 | $5.840 | $619.04 |
| 2026 | $6.716 | $711.90 |
| 2027 | $7.723 | $818.68 |
| 2028 | $8.882 | $941.48 |
| 2029 | $10.214 | $1,082.70 |
| 2030 | $11.746 | $1,245.11 |
| 2031 | $13.508 | $1,431.88 |
| 2032 | $15.535 | $1,646.66 |
| 2033 | $17.865 | $1,893.66 |
| 2034 | $20.544 | $2,177.71 |
How to maximize your dividend income
Many high-dividend growth stocks do not offer a dividend reinvestment plan (DRIP). They pay you dividends. Thus, one suggestion is to consider investing in them through a Tax-Free Savings Account (TFSA). The TFSA allows you to grow your investments tax-free. You can use the tax-free dividend income to buy shares of BCE (TSX:BCE). As no dividend tax is deducted in the TFSA, the entire amount can be reinvested.
BCE stock
The Canadian telco slashed its dividend for the first time in 17 years by 56% to $1.75 per share in 2025. The move was welcomed by investors as higher dividend payments of over 100% of free cash flow were weakening the balance sheet. The dividend cut and a change in the target dividend payout range to 40% to 55% of free cash flow will give the company financial flexibility to reduce debt and fund its business restructuring.
BCE is moving aggressively from telco to techno and has made several acquisitions and partnerships in that regard. A reduction in debt, offloading of lower margin businesses, and entry into high margin businesses will help BCE grow its free cash flow significantly in the future.
BCE offers a DRIP, and a dividend cut has reduced its yield to 5.4%. Now is a good time to start accumulating the telco’s shares by reinvesting the goeasy dividend in a BCE DRIP. That way, you will compound your returns at two levels. Within the next 10 years, BCE could resume growing its dividends and expedite your compounding.
Investor takeaway
Investing in the right stocks at the right time can determine where you stand in your investing journey. A carefully crafted stock list can help you invest with confidence.
