Want Decades of Passive Income? Buy and Hold These 3 Canadian Stocks

If you want a portfolio that churns out steady passive income for decades, you can’t just chase yield. You need companies with staying power, strong fundamentals, and the kind of cash flow that supports dividends through both booms and busts. Three Canadian dividend stocks stand out right now for their ability to do just that. Those are Canadian Natural Resources (TSX:CNQ), Royal Bank of Canada (TSX:RY), and Brookfield Asset Management (TSX:BAM). Each navigated the past year with resilience, delivered solid results, and positioned itself for long-term growth that should keep dividend cheques flowing for years.

CNQ

Canadian Natural Resources is one of the most reliable income generators in the energy sector. In the past year, it’s grown production meaningfully through both acquisitions and organic development. Second-quarter (Q2) production hit 1.42 million barrels of oil equivalent (BOE) per day, even with a planned oil sands turnaround that came in ahead of schedule. Operating costs have come down in key plays like the Duvernay, while strategic buys like its Montney and Palliser Block acquisitions expand its high-quality land base.

The dividend stock generated $3.3 billion in adjusted funds flow last quarter, returned $1.6 billion to shareholders, and still kept a robust balance sheet with $4.8 billion in liquidity. With a WTI breakeven in the low to mid-$40s, Canadian Natural’s dividend looks well protected, though oil price volatility will always be a risk. For investors, that means a payout backed by cost discipline and one of the strongest asset bases in the industry.

RY

Royal Bank of Canada spent the past year proving why it’s a cornerstone of many Canadian portfolios. The HSBC Canada acquisition helped boost Q2 net income by 11% year over year to $4.4 billion, with strong contributions from personal banking, wealth management, and insurance. Even as provisions for credit losses rose, the bank’s capital position remained rock solid with a common equity tier-one ratio of 13.2%.

That balance sheet strength allowed RBC to raise its quarterly dividend by 4% to $1.54 per share and announce a new share-buyback program. While rising loan loss provisions reflect economic uncertainty, RBC’s diversified revenue streams and scale give it resilience. The near-term headwind will be credit quality if the economy weakens, but long-term, this is a steady dividend payer with a strong track record of growth.

BAM

Brookfield Asset Management offers a different kind of income play, anchored in alternative assets like infrastructure, renewable power, and private equity. Over the last twelve months, fee-related earnings have climbed 18%, and distributable earnings rose 13%. In Q2 alone, Brookfield raised $22 billion and deployed $28 billion into large-scale projects, including a historic hydroelectric deal with Google and a $10 billion investment in Sweden’s digital infrastructure.

At the same time, it sold $36 billion in assets, locking in gains and recycling capital. The dividend stock’s dividend of $0.4375 per share quarterly is well supported by steady fee-bearing capital, now at $563 billion, up 10% year over year. The main risk here is tied to deal-making cycles and market conditions, but its scale and diversification help cushion that.

Foolish takeaway

Over the past year, all three dividend stocks showed why each is built for longevity. Each offers a unique way to generate passive income, but shares a common thread: disciplined capital allocation and a focus on long-term value. One that could offer $1,174 in dividends per year from investing $10,000 in each stock.

For investors thinking beyond the next quarter, these aren’t just dividend payers. These are compounding machines capable of delivering a steady income through market swings. Hold them for the next decade, and you could see your passive income grow while you sleep. The market will always throw curveballs, but with these three in your corner, you’re swinging with some of Canada’s best.