As adults, most of us dream of creating a cushion that protects our families from uncertainty and gives them opportunities we never had. One of the most effective ways to work toward that dream is to invest in fundamentally strong companies that grow consistently while rewarding shareholders with attractive dividends.
Investments that balance reliability with consistent performance tend to serve as key pillars of long-term financial security. Let’s take a closer look at two well-established Canadian stocks that could help you build that kind of future through stable income and long-term growth potential.
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Royal Bank of Canada stock
My first pick is a financial giant whose scale and stability make it a go-to choice for income-focused investors. Royal Bank of Canada (TSX:RY) is Canada’s largest bank, with a presence that spans personal and commercial banking, wealth management, capital markets, and insurance. After surging by 23% over the last year, RY stock currently trades at $183.87 per share, giving it a market cap of $259.7 billion. At this market price, it offers an annualized dividend yield of about 3.4%.
The recent momentum in Royal Bank stock mainly comes on the back of strong financial results. Notably, in the second quarter of its fiscal year 2025 (ended in April), the bank’s net income climbed 11% YoY (year-over-year) to $4.4 billion, with its adjusted net income increasing by 8% to $4.5 billion. Both segments, including personal banking, wealth management, and insurance, delivered solid earnings growth in the latest quarter, supported by the integration of HSBC Canada, which added $258 million to Royal Bank’s bottom line.
Moreover, the largest Canadian bank’s strong capital position supports its business expansion prospects and shareholder returns. With a diversified business model, disciplined risk management, and a steady history of dividend growth, RBC remains a top stock for building long-term financial security.
Fortis stock
Next up is a utility operator whose predictable business model and growth plans make it an attractive pick for stability-minded investors. Fortis (TSX:FTS), which is a diversified regulated electric and gas utility holding firm, operates across Canada, the U.S., and the Caribbean. After climbing 18.4% in the last year, FTS stock now trades at $69.82 per share with a market cap of $35.2 billion. It rewards investors with reliable quarterly dividends and currently has an annualized dividend yield of around 3.5%.
In the second quarter of 2025, Fortis posted a solid 16% YoY jump in its adjusted net profit to $384 million. This gain was largely fueled by its rate base growth, earnings from the Eagle Mountain Pipeline project, and higher contributions from Central Hudson after a reset in revenue requirements. A stronger U.S. dollar against the Canadian dollar also boosted its financials last quarter.
Interestingly, Fortis plans to grow its midyear rate base from $39 billion in 2024 to $53 billion by 2029, reflecting a solid 6.5% compound annual growth rate. This growth is expected to support its annual dividend increases of 4% to 6% through 2029. With its regulated structure, predictable cash flow, and ambitious capital plan, Fortis has the potential to yield reliable returns for long-term investors.
