Want 2 Decades of Passive Income? Start With These 2 Canadian Dividend Stocks

These two Canadian companies offer a powerful mix of regulated stability and global growth for long-term passive income investors.

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Key Points
  • Building passive income for decades starts with owning strong, essential-service businesses that are built to last.
  • ATCO (TSX:ACO.X) offers steady 3.5% dividends backed by regulated utilities and multi-billion-dollar growth projects.
  • Brookfield Business Partners (TSX:BBU.UN) focuses on global growth and smart capital moves that, despite its low dividend payouts, could compound your wealth over time.

If you’re hoping to build passive income that can last for decades, you may want to consider owning businesses that are built to stick around. Most dividend-paying companies connected to essential services, regulated infrastructure, and diversified global operations tend to hold up well over time.

That’s why, instead of worrying about short-term market swings in the Canadian stock market, long-term investors can expect better returns by holding solid Canadian dividend stocks with clear paths to growth. Here are two Canadian companies that stand out right now.

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ATCO’s regulated strength and long-term visibility

If stability is high on your priority list, ATCO (TSX: ACO.X) is worth a closer look. The Calgary-based company operates regulated utilities, develops infrastructure, and provides modular solutions around the world. Through ATCO Energy Systems, ATCO Structures, and other infrastructure-focused businesses, it serves markets that people rely on every day.

ATCO shares are trading at $59.44, giving the company a market cap of about $6 billion. At that price, investors receive a 3.5% annual dividend yield, paid quarterly.

In the third quarter of 2025, ATCO reported adjusted earnings of $103 million, up from $91 million in the same quarter of the previous year. For the first nine months of the year, its adjusted earnings climbed nearly 9% YoY (year-over-year) to $364 million. That YoY growth clearly shows that its regulated businesses are contributing more consistently.

One of the biggest growth drivers for ATCO could be its capital investment plan. In the third quarter alone, its subsidiary Canadian Utilities invested $402 million, with 95% going toward regulated assets. Its Yellowhead Pipeline Project, expected to cost around $2.9 billion, recently cleared an important regulatory step with approval of its Needs Assessment Application. The project’s construction is targeted for 2026. Similarly, the company’s Central East Transfer-Out transmission project is also moving forward and is expected to be energized by mid-2026.

Over 20 years, its strong infrastructure-backed growth can help support reliable and gradually increasing dividend income.

Brookfield Business Partners’ global compounding

While ATCO focuses on regulated stability, Brookfield Business Partners (TSX: BBU.UN) takes a different approach. It owns and operates businesses around the world across industrials, business services, and infrastructure operations.

After jumping 53% over the last year, Brookfield Business Partners currently trades at $50.65 per share, giving it a market cap of roughly $7 billion. The stock offers a 0.7% annual dividend yield, paid quarterly. While its yield looks small, Brookfield’s strategy is centred more on long-term value creation and capital growth, while still maintaining reliable dividend payouts.

In 2025, Brookfield reported a net profit attributable to unitholders of $43 million, significantly better than a loss of $109 million in 2024. Strong demand in advanced energy storage and engineered components boosted these results.

The company has also been active with capital allocation. In 2025, Brookfield generated more than $2 billion through capital recycling, invested about $700 million into four growth acquisitions, and repurchased $235 million worth of units and shares that it believed were trading below intrinsic value.

Overall, its strategy of buying businesses, improving operations, and reinvesting capital has the potential to handsomely compound value for investors over time.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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