Want Decades of Passive Income? 3 Stocks to Buy Now and Hold Forever

Forget the difficulty of investing for major growth, instead gain consistent growth and income!

If you’re building a portfolio for decades of passive income, you need more than high yields. You need dividend stocks that can keep paying – and growing – dividends through all kinds of markets. That’s where the right mix of big banks, niche lenders, and insurance giants can come in. On the TSX, three standouts are the Bank of Nova Scotia (TSX: BNS), Timbercreek Financial (TSX: TF), and Intact Financial (TSX: IFC). Each brings a different income angle, but all have the track records and strategies to make them worth holding for the long haul.

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BNS

The Bank of Nova Scotia has been a cornerstone for Canadian income investors for decades, and it’s still one of the highest-yielding big banks. Shares have climbed nearly 24% over the past year, with the bank benefiting from a recovery in international markets and steady growth in wealth management.

In Q2 2025, it posted adjusted net income of $2.1 billion, a slight dip from last year, largely due to higher credit loss provisions in Canadian banking. International banking, however, was a bright spot, with earnings up 7% year over year.

The dividend bumped up 4% to $1.10 per share quarterly, giving it a forward yield close to 5.7%. The challenge is navigating a mixed economy with rising provisions and some pressure on margins. Yet the bank’s diversified footprint helps balance those risks. For investors who want consistent payouts with the potential for slow but steady growth, it’s still a top-tier dividend stock.

TF

Timbercreek Financial is less of a household name but offers an income stream that’s hard to ignore. The lender focuses on commercial real estate mortgages, especially in the multi-family residential space. Plus, it pays a monthly dividend that currently works out to a yield around 9%.

Over the past year, its share price has slipped slightly, but its Q2 2025 results showed resilience. Net income came in at $12.4 million, down from $15.4 million a year earlier, as revenue softened. Even so, its mortgage portfolio grew 11% year over year, and 87% of its loans are variable rate with interest rate floors, protecting yields in a falling rate environment.

Management is actively resolving riskier staged loans, freeing up capital for new, higher-yield investments. The main risk here is exposure to the commercial real estate market. Yet with its focus on multi-family projects, Timbercreek offers an attractive high-yield dividend stock in an otherwise low-return lending landscape.

IFC

Intact Financial brings a different flavour to the mix, a leading property and casualty insurer with a growing dividend and a strong underwriting record. Shares are up nearly 12% over the past year, and the dividend stock’s latest quarter showed why.

In Q2 2025, operating direct premiums written grew 4%, and its combined ratio improved to 86.1%, reflecting disciplined underwriting. Net operating income rose 8% year over year to $935 million, and book value per share climbed 12% to $98.67. The dividend yield is lower at around 1.9%, but Intact has a long track record of annual increases and strong capital management.

Its geographic diversity and disciplined approach to risk make it a reliable income grower rather than just a yield play. The biggest challenges are potential spikes in catastrophic losses and competitive pressures in certain markets, but its balance sheet strength provides a solid cushion.

Bottom line

Put together, these three cover the spectrum of a high-yield bank with international reach, a niche lender delivering monthly income, and a steady insurer growing payouts year after year. Each have their own economic sensitivities, but share the common thread of disciplined capital allocation and shareholder returns.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
BNS$77.8989$4.40$391.60Quarterly$6,932.21
TF$7.68911$0.69$628.59Monthly$6,994.88
IFC$279.4125$5.32$133.00Quarterly$6,985.25

Combined, a $21,000 investment could bring in $1,150 each year in dividends alone! For anyone looking to set up decades of passive income, buying these dividend stocks now and holding through the ups and downs could mean enjoying a growing paycheque for years to come.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia and Intact Financial. The Motley Fool has a disclosure policy.

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