Finding stocks that investors can feel reasonably confident will trade higher a decade from now compared to current levels is what we’re all after. Indeed, the idea that stocks typically head up and to the right means that over a given 10-year timeframe, most picks should be higher over such a period.
Though filtering one’s search on key fundamental metrics that can indicate quality (earnings or balance sheet quality, doesn’t matter) can improve one’s chances over the long term. And even if you’re among the more pessimistic investors out there who think average returns over the next decade could be negative, given where valuations are right now, I’d still argue there are plenty of opportunities out there that do seem like high-probability bets they’ll be trading higher a decade from now.
Here are three of my top dividend stock picks in that regard in December 2025.
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Toronto-Dominion Bank
Among my top Canadian bank picks for 2026, Toronto-Dominion Bank (TSX: TD) remains a core portfolio pillar that I think investors can sleep well at night owning over the next decade.
Sure, plenty could theoretically go wrong that would nullify my bullish thesis around TD stock and this sector overall. If we get some sort of global financial crisis that bleeds into the Canadian banking sector, that would undoubtedly derail my thesis. And despite TD being one of the most solid growth and dividend stocks Canada has to offer, it’s important not to discount the impact black swan events can have on one’s portfolio.
But given the stability Canadian bank stocks provided during the past financial crisis, this is a sector I think still makes sense for investors right now. With a dividend yield of 3.6% and a valuation right around 10 times earnings, TD seems like a no-brainer pick to me right now.
Fortis
Canadian utility giant Fortis (TSX: FTS) continues to grace most of my listicles focusing on defensive options for investors looking to take home reasonable total returns over the course of the next decade.
Like TD, Fortis has a very reasonable mid-3% range dividend yield and continued to grow its dividend distributions over time. On this front, Fortis is among the best dividend-growth stocks out there, with a more than 50-year track record of upping its dividends, and at an impressive clip at that — around 6–7% per year.
Those who believe AI will continue to drive solid electricity demand for years to come also have plenty of growth upside with a name like Fortis. So, trading at its current multiple of around 22 times earnings, I think Fortis is a solid long-term pick to consider despite its recent impressive rally shown above.
Canadian Natural Resources
Investors looking for more passive income than capital appreciation over the next decade can certainly consider a company like Canadian Natural Resources (TSX: CNQ) at this point in the market cycle.
With a dividend yield of 5% and a business model revolving around one of the most impressive and diversified energy and commodities portfolios in the Canadian market, I think Canadian Natural is a stock that’s worth considering after its recent run-up.
Indeed, a 5% yield is impressive for a company that’s been trending higher for much of the past decade. Ignoring some major volatility around the time of the pandemic, when all energy and commodities-related stocks took a hit, this is a company that’s been about as consistent a performer as they come.
I think much of the same is likely to hold over the next decade. Like it or not, we’re going to need to fuel our economy with the energy Canadian Natural and others provide. That’s not going to change, and this company’s cash flow growth profile looks to remain intact to me.
