2 Dividend Stocks Worth Owning Forever

These dividend picks are more than just high-yield stocks – they’re backed by real businesses with long-term plans.

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Key Points
  • Smart investors know reliable dividend payers often build the most lasting wealth.
  • MCAN Mortgage (TSX:MKP) continues to grow its mortgage book while paying over 7% in dividends.
  • Alaris Equity Partners (TSX:AD.UN) is backing private businesses and rewarding investors with a rising payout.

Foolish investors know that patience with quality dividend stocks could be more profitable than predictions about short-term market moves. While everyone else is trying to time the market or chase quick gains, smart investors stick to quality businesses that just keep delivering. Especially the ones that pay you real cash, every single quarter.

Beyond passive income, fundamentally strong dividend stocks often reflect a stable business, investor confidence, and the company’s commitment to rewarding its shareholders. And when those dividends come from companies with strong operations and growth plans, you’ve got something worth holding forever.

In this article, I’ll spotlight two such Canadian dividend stocks with a solid track record and strong income potential that could help you grow and protect your portfolio over the long term.

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MCAN Mortgage stock

First up is MCAN Mortgage (TSX: MKP), a mortgage firm that’s not only currently paying a high yield but also building real value through strategic growth. This Toronto-based mortgage investment company mainly focuses on generating income through residential and construction lending across Canada. After climbing by 17.2% over the last six months, MKP stock currently trades at $23.01 per share with a market cap just under $928 million. At this market price, it offers a generous 7.1% annualized dividend yield, which could be a major win for long-term income investors.

A big reason for MKP stock’s recent rally is its consistent mortgage originations, including a 30% year-to-date boost in MCAN’s uninsured residential mortgages. Its recently launched uninsured mortgage securitization program also shows how the company is adapting to diversify its funding.

Notably, MCAN posted a 2% sequential increase in its net profit for the third quarter to $20.5 million. As a result, its earnings came in at $0.52 per share, even as its provisions for credit losses rose due to market uncertainty. To add optimism, the company’s credit quality held strong in the latest quarter, supported by a solid average loan-to-value of 65.4%. With residential mortgage assets now totalling $4 billion and construction mortgages growing to $1.2 billion, MCAN is clearly investing for long-term value.

From product expansion to infrastructure investments, the company is focusing on sustainability and profitable growth. For dividend investors looking for a trustworthy stock that pays strong dividends now and plans ahead, MCAN looks like a great pick.

Alaris Equity stock

Moving on to Alaris Equity Partners Income Trust (TSX: AD.UN), a high-yield trust that’s proving how valuable structured equity investments can be over time. Based in Calgary, this company invests in private businesses through preferred and common equity, generating regular distributions.

Following a 13% jump over the last two months, its stock currently trades at $20.26 per unit with a market cap of about $919 million and offers a solid 6.7% dividend yield. Notably, the company just increased its dividend distribution by 9%, taking it to $1.48 annualized.

In the latest quarter (ended in September), Alaris reported a record net book value of $25.10 per unit. Similarly, its revenue and operating income climbed 8% year over year with the help of a $47.9 million net unrealized gain on investments.

Beyond numbers, what makes Alaris more special is its ability to keep reinvesting. In the first three quarters of 2025, it deployed $228 million across new and existing partners. Meanwhile, the company continues to focus on providing reliable income through its unique investment structure. With a growing portfolio and a strong earnings coverage ratio among its partners, Alaris remains one of the top dividend stocks that could reward patient investors for many years.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Alaris Equity Partners Income Trust. The Motley Fool has a disclosure policy.

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