2 Canadian Dividend Giants to Buy and Never Sell

Here’s why Great‑West and TELUS can power a TFSA with steady cash and decade‑long compounding.

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Key Points
  • Great-West Lifeco offers steady dividends and earnings growth from insurance and retirement
  • TELUS runs essential networks
  • Pairing GWO and TELUS can create simple, tax-free income in a TFSA

Your Tax-Free Savings Account (TFSA) does not need a dozen “hot picks” to feel like a wealth plan. It can start with two dividend giants that arrive, quarter after quarter, even when the market feels moody. Investors chase excitement, then end up exhausted. A dividend giant flips that script because it sells essential services, generates cash flow, and shares it with shareholders in a steady rhythm.

Better still, it often raises the payout over time, which helps your income keep pace with life’s rising costs, all inside a TFSA where the tax bill stays at zero. That’s why today, we’re looking at dividend giants investors can buy now, collect income, and never sell.

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GWO

Great-West Lifeco (TSX: GWO) fits the dividend giant mould because it sits in the middle of insurance, retirement, and wealth management. It earns fees and spreads from millions of policies and plans, and it benefits when people keep saving for longer retirements. That setup does not depend on one product cycle, which helps it stay steady across booms and slowdowns. Recently, the stock has traded near the top end of its 52-week range, signalling renewed confidence in the story.

Recent earnings support that calm vibe. In the third quarter of 2025, Great-West reported net earnings attributable to common shareholders of about $1.16 billion, up sharply from the year before. That jump points to solid execution across its segments and improving operating leverage. For a long-term holder, stronger earnings also give the dividend more breathing room and lower the risk of a nasty surprise during a choppy market.

On valuation, Great-West tends to trade like a sensible financial rather than a hype-driven growth name, and that can work in your favour. The yield has hovered around 3.6% lately, which won’t grab headlines but can look appealing beside safer yields if rates fall. The risk is that markets can sag, which can hit fee income and sentiment at the same time. Still, if you want a core TFSA holding that blends resilience, income, and gradual growth, GWO checks a lot of boxes.

T

TELUS (TSX: T) offers a different flavour of dividend-giant appeal. It runs telecom networks that households treat like a utility bill, and it has a growing digital health business that adds a second engine. The dividend stock has been frustrating, with shares stuck in the high teens after a rough stretch, and that has pushed the yield far above normal. That weakness can be an opportunity if demand for connectivity stays essential and TELUS converts heavy investment into better cash flow.

TELUS delivered results that show it still executes even when the dividend stock chart looks grumpy. In the third quarter of 2025, it reported free cash flow of about $611 million, and it kept its broader capital and cash flow plans on track. It has also laid out a goal to grow free cash flow at a minimum 10% compounded annual rate over the next three years. Those targets show cash flow, not confidence, pay dividends, and support network upgrades.

The dividend is both the reason to buy and the reason to stay honest. The yield has climbed into the 9.5% range largely because the share price fell, which means the market still questions coverage and future growth. TELUS also has real capital needs, and that can squeeze flexibility if competition heats up or borrowing costs stay higher for longer. Still, if cash flow keeps improving, TELUS can shift from “too scary” to “too cheap” quickly.

Bottom line

Put together, GWO and T give you two different paths to “buy and never sell.” Great-West leans on steady financial compounding, while TELUS leans on essential services and a potential rebound as cash flow improves. Each one can pay you to wait, and each one can help a $14,000 TFSA contribution feel purposeful instead of scattered. In fact, here’s what $7,000 can bring in from each dividend stock.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
T$17.39402$1.67$671.34Quarterly$6,990.78
GWO$67.04104$2.44$253.76Quarterly$6,972.16

If holding just two dividend stocks ever feels bold, remember the point is quality and patience, not perfection. The deal is simple: you only get the long-haul rewards if you refuse to flinch during the ugly months.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

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