A Decade From Now, You'll Be Glad You Bought These Magnificent TSX Dividend Stocks

A Decade From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks

These companies may not have the most stringent dividend policies, but they put your money to work and give you a share in the profit.

Puja Tayal

Puja Tayal has been writing for Motley Fool Canada since 2020. Her love for writing inspired her to start a college newsletter. With a Bachelors's degree in Finance and Accounting and CFA Level 1, Puja strives to transform stock discussions into breakfast table chats through her articles. A movie buff and a finance geek, Puja weaves superheroes, cartoons, and novels to tell you a story touching different aspects of investing, from portfolio and tax planning to retirement savings. Follow her on Twitter for more stories.

Published December 31, 2025 4:00 pm EST

| More on: POWGWOIGMT

Spending time in the market is always more rewarding than procrastinating. We live in the world of paper currency, where the value of money keeps falling due to inflation. At times like these, your savings should keep up with the value of money and make money work for you. If the risk of market volatility is too much to handle, the TSX has some magnificent dividend stocks that can provide regular payouts and even grow them faster than inflation, putting your money to work.

Two magnificent dividend stocks to hold for a decade

Power Corporation of Canada

Power Corporation of Canada (TSX:POW) stock has surged to an all-time high and sees no signs of slowing. Behind this rally is the restructuring of assets to unlock shareholder value. Power Corporation is a financial holding company. The company’s share price increases as the share price of its holding companies grows. Power’s net asset value (NAV) increased by 25% year-over-year to $72.24 at the end of September 30, 2025. The stock is currently trading near its NAV.

Its biggest income source is dividends from Great-West LifeCo, IGM Financial, and GBL, which it transfers to shareholders. Its diversified source of income from insurance premiums, asset management, private equity, power, and real estate makes it a stock to own. And not only is it diversified through different financial verticals, but Power Corporation’s companies have operations in North America and Europe.

This stock has grown its dividends at an average annual rate of 7% over the last 10 years. POW has the capacity to keep growing dividends for the coming 10 years.

Telus

Another magnificent dividend stock is Telus Corporation (TSX:T). While Power Corporation is trading at its all-time high, Telus is trading near its 12-year low. Behind the decline is the reality that the world has changed for the telco. It has a mountain of debt on its balance sheet, which it took to fund 5G infrastructure. However, regulatory changes reduced the return on the infrastructure investment by forcing it to lease the network to competitors at discounted prices. Since the return on investment fell because of competitive prices, Telus had to resort to early debt repayment to reduce its finance cost.

It has been selling its non-core assets and has made changes to dividends for the next three years to channel more free cash flow towards debt repayment. Management has increased the dividend by 2.2% for January 2026 and stated that no more dividend growth is likely in 2026. However, dividend growth will resume once the share price reflects its growth prospects. What does this mean?

With the stock trading near its 12-year low and an increase in dividend per share, its yield has increased to 9.5%. That itself is a premium. You get to lock in a 9.5% yield and dividend reinvestment plan (DRIP). A temporary pause in dividend growth will give the management flexibility to strengthen the balance sheet and pay future dividends.

Telus has also tweaked its DRIP. Instead of giving treasury stocks at a 2% discount, it will use the dividend money to buy back shares from the market and will phase out the 2% discount by the end of 2028. This will help it reduce the share count and further aid future dividend growth in a competitively priced market.

The value of holding these magnificent dividend stocks for a decade

Had you invested $10,000 in POW stock in January 2015, you could have purchased 322 shares at $31 per share. These 322 shares would have given $401 in annual dividends in 2015, which has grown to $789 in 2025. The cost of delaying investment is a cumulative dividend of $6,300 and a capital gain of $13,600. In other words, your money could have doubled in these 10 years.

Had you invested $10,000 in Telus stock in January 2015, you could have purchased 454 shares at $22 and earned a cumulative dividend of $6,700. The $372 in passive income in 2015 would be worth $743 in 2025. Had you invested in a DRIP, the dividend amount would have compounded to $2,300 as the cumulative dividend would have increased the share count to 1,414.