2 Dividend Stocks for Canadians to Hold Through Retirement

Fortis (TSX:FTS) and another great dividend payer are worth holding for a comfortable retirement.

Key Points
  • Fortis and Restaurant Brands are positioned as long-term, retirement-friendly dividend holdings that are better owned through volatility, with market corrections viewed as opportunities to add.
  • Fortis offers defensive stability (3.5% yield, low beta) with steady dividend growth, while Restaurant Brands pairs a similar yield with a consumer-value tailwind and a straightforward growth plan that could hold up as spending tightens.

There are some Canadian dividend stocks out there that investors can feel comfortable and confident holding going into retirement. Undoubtedly, there are very few stocks that are worthy of hanging onto for more than a decade. But when it comes to the most premier dividend payers, many of which have long track records for growing their payouts, such names are more than worthy of stashing away for decades at a time.

In this piece, we’ll have a closer look at a pair of dividend stocks that I think are deserving of a semi-permanent spot in a (prospective) retiree’s portfolio. As always, the following names might be best owned, rather than traded, given their improving fundamentals and the potential for vicious slides come the next inevitable market correction, which tends to hit every year or so.

Such corrections could be opportunities to buy more of your favourite dividend stocks at a markdown. And at this juncture, I think there’s a decent enough entry point to start a position in a name that could act as a major contributor to one’s passive-income stream in retirement.

A glass jar resting on its side with Canadian banknotes and change inside.

Source: Getty Images

Fortis

Shares of Fortis (TSX: FTS) are fresh off a decent past year of gains, rising more than 22% while continuing to pay out the generous dividend. Though the yield, currently at 3.5%, is no longer as bountiful as it once was, I still think the steady, regulated utility is a great place for investors to build wealth as they shelter from market-wide volatility. Undoubtedly, geopolitical turmoil has picked up in 2026, and that could cause a rush to the steadier defensive dividend stocks. When it comes to playing defence, I view FTS stock as one of the best ways to do it.

With a great history of dividend growth and the ability to benefit from increased energy consumption, thanks to AI data centres, I wouldn’t discount the “boring” steady dividend payer, especially as it benefits in the background from a trend that might just mint winners in some of the less-obvious corners of the market.

The 3.5% yield is decent, but it’s the 0.40 beta and newfound momentum that make me most bullish. Combined with a strong management team and a predictable growth pathway, I view the 21.3 times trailing price-to-earnings (P/E) multiple as a fair price to pay for what could be one of the best premier utility plays in the Canadian market.

Restaurant Brands International

Restaurant Brands International (TSX: QSR) stock also has a 3.5% dividend yield, a modest multiple (24.6 times trailing P/E), and a straightforward growth narrative. The company behind Tim Hortons, Burger King, Popeyes Lousiana Kitchen, and Firehouse Subs has been relatively flat, gaining 11% in the past year, falling short of the TSX Index’s gains.

Still, as Canadians opt to spend less and save more in the new year, I think Restaurant Brands is poised to win at the expense of pricier dine-in restaurants. Indeed, fast food is a quick and easy way to save money. And with menu innovation and value among the top priorities of management, I would look for QSR’s chains to keep flying higher.

Add the low beta (0.60) and history of dividend growth into the equation, and QSR shares really do stand out for conservative investors seeking rich, growing dividends.

Fool contributor Joey Frenette has positions in Fortis and Restaurant Brands International. The Motley Fool recommends Fortis and Restaurant Brands International. The Motley Fool has a disclosure policy.

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