Dividend Investing: 10 Years From Now, You'll Be Glad You Bought These Magnificent Stocks

Dividend Investing: 10 Years From Now, You’ll Be Glad You Bought These Magnificent Stocks

Learn how different stocks can help you build passive income through dividend investing and effective strategies for success.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published July 29, 2025 8:15 pm EDT

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.

dividend growth for passive income — Source: Getty Images

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.