The difference between a good retirement portfolio and a great one often comes down to a single variable: time. In the short term, the stock market is a voting machine, swayed by sentiment and headlines. But over the long term, it acts as a weighing machine, rewarding companies that consistently generate cash and share it with investors.
If you are looking to build a passive income portfolio that you can look back on with pride in 2035, two TSX dividend stocks stand out today. One offers a high-yield turnaround opportunity, while the other promises steady, regulated growth.
Here is why you might be thrilled you bought TELUS (TSX:T) stock and Emera Inc. (TSX:EMA) today.
TELUS stock: The contrarian high-yield dividend play
It’s rare to find a blue-chip Canadian telecom offering a sustainable 9.4% dividend yield, but TELUS currently presents exactly that opportunity. The stock has been under pressure, and management’s decisive capital management policy update in December 2025 has created a fascinating entry point for contrarian investors.
TELUS recently announced a three-year pause in its dividend growth through 2028. While dividend growth investors usually dislike pauses, this move is a strategic pivot designed to appease Bay Street and fortify the company’s balance sheet. Management has shifted its focus toward a 10% free cash flow growth target, aiming to pay down debt and strengthen the company’s financial footing.
The TELUS dividend opportunity looks compelling. Investors’ concerns have elevated the yield to historic highs, but this window may be closing as management speaks analysts’ language. Consider the case of BCE Inc., which cut its dividend by a massive 56% earlier in May 2025. Once the market realized the new payout was sustainable, BCE shares rebounded, and the yield has compressed from nearly 6% down to 5.6%.
TELUS offers a different proposition. Its 9.4% dividend appears secure and will likely remain intact over the next three years. If the company executes its plan to repair its balance sheet, there’s a chance management could revert to its traditional semi-annual dividend raises.
Investors buying TELUS stock today lock in a massive yield and position themselves for potential capital appreciation that could more than double their capital over the next decade.
Emera stock: Harvesting Florida-fueled utility cashflow
Emera Inc. stock is a standout candidate for investors seeking reliability. This $20 billion diversified utility generates approximately 95% of its cash flow from regulated sources, making it a predictable passive income machine for the long haul, with Florida operations doing the heavy lifting.
The core of Emera’s growth thesis lies south of the border. In the first nine months of 2025, the company generated nearly 83% of its adjusted net income from its Florida electric utility segment.
To support this key market, Emera unveiled a $20 billion capital expenditure plan in November 2025. Management dedicates a significant 80% of this budget to Emera’s Florida operations, specifically to harden the grid against storms and weather events. This investment should drive 8% to 9% annual growth in the Florida rate base, helping the company achieve a consolidated rate base growth target of 7–8% annually through 2030.
Emera stock should reward patient investors with steady returns over the next decade. Its quarterly dividend currently yields a respectable 4.3%. With an 18-year dividend growth streak already under its belt, the company is targeting further annual raises of 1–2% through 2030. While this dividend growth rate is modest, it is supported by a sustainable 78% payout ratio.
When you combine the dividend yield with the potential for 4% to 5% annual capital gains, driven by the company’s robust capital program, investors could see total returns exceeding 8% annually over the next decade. Such returns can double one’s investment in nine years, the Rule of 72 predicts.
If interest rates in North America trend lower, Emera’s steady income profile becomes an even more attractive bond alternative, potentially driving the stock price higher.
Investor takeaway
Both TELUS stock and Emera stock offer distinct paths to wealth creation. TELUS is the high-yield value play, offering a 9% payout with significant upside if management successfully executes its deleveraging strategy. Emera is the steady compounder, offering regulated stability and visible growth from its Florida operations.
Buying these outstanding stocks for 2026 could be the decision that makes your 2035 portfolio truly magnificent.
