One of the biggest fears many retirees face is the possibility of outliving their savings. But with the right investment approach, you can turn that worry into confidence and create an income stream that lasts for decades.
One of the most reliable ways to achieve this is by investing in strong, established Canadian dividend stocks. These companies reward shareholders with regular cash payouts even when the market feels uncertain. Moreover, if you reinvest those dividends, you’re able to purchase more shares. Those extra shares then generate more dividends, which can be reinvested, creating a powerful compounding effect.
Over the years, these investments will grow into a powerful source of income, helping you enjoy retirement with more confidence and less worry about running out of money.
With this backdrop, here are two Canadian stocks that can help you generate decades of worry-free income.
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Fortis stock
Fortis (TSX:FTS) is a no-brainer Canadian stock for investors looking for worry-free dividend income. This leading electric and gas utility company operates a low-risk, regulated business that generates highly predictable and growing cash flow, supporting its quarterly distributions. Further, this blue-chip company also provides visibility over its future dividend growth, making it a top investment to generate steady income.
With 10 regulated utilities across North America, Fortis earns most of its income from a diverse mix of rate-regulated assets. Further, it primarily focuses on energy transmission and distribution, which remains largely immune to the risks associated with power generation. This low-risk operating structure and growing rate base have enabled Fortis to increase its dividend for 51 consecutive years. Moreover, FTS stock currently offers a decent yield of 3.5%.
Looking ahead, Fortis plans to keep growing its dividend by 4–6% annually through 2029. Its payouts will be supported by its growing rate base, which management expects to increase at a compound annual growth rate (CAGR) of 6.5% to reach $53 billion by 2029.
Its Investments in modernizing transmission infrastructure, supporting Arizona’s clean energy shift, and upgrading systems augur well for growth. Moreover, this utility giant will also benefit from the broader energy transition and the needs of high-consumption sectors such as data centres, manufacturing, and mining.
In short, Fortis’s low-risk business model, growing rate base, and rising power demand will help generate steady earnings, supporting higher payouts.
TC Energy
TC Energy (TSX:TRP) is another dividend stock for investors seeking to generate decades of stress-free passive income. It owns a diversified energy infrastructure business, anchored by its network of natural gas pipelines enjoying high utilization. This steady demand generates robust cash flow, supporting its dividend payouts.
Notably, about 95% of TC Energy’s income comes from rate-regulated assets or long-term contracts, making its revenue stream both low-risk and highly predictable. This operating structure is an ideal setup for sustaining and growing dividends.
Since 2000, TC Energy has expanded its portfolio of high-quality, low-risk assets from $25 billion to more than $100 billion. Over that same period, shareholders have benefited from consistent dividend growth. Its annual payouts have climbed steadily, from $0.85 per share in 2000 to $3.40 per share in 2025.
Looking ahead, TC Energy’s mix of complementary infrastructure assets and a robust pipeline of secured growth projects provides a solid foundation for continued dividend increases. Management expects to deliver annual dividend growth in the range of 3–5% over the long term. Moreover, it offers an attractive yield of 4.9% near the current price levels.
In summary, TC Energy’s U.S. natural gas pipelines, operating under long-term take-or-pay contracts, will remain a critical driver of future payouts. In addition, energy transition opportunities and rising power demand from data centres are expected to bolster its growth. With a focus on high-return projects and a proven ability to execute, TC Energy is well-positioned to deliver steady earnings growth and reliable dividends for many years to come.
