Finding investments you can truly hold for the long haul can be difficult during periods of macroeconomic uncertainty. During such times, there’s constant market noise and too many short-lived trends. As Foolish investors, we look for stability, consistent returns, and businesses that could weather different market cycles.
That’s where dividend investing stands out. It gives you a steady income stream while offering the potential for capital appreciation. More importantly, it helps you build wealth gradually through compounding. The key is to focus on high-quality businesses that consistently return capital to shareholders and have the ability to rise over time.
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Peyto Exploration & Development stock
Peyto Exploration & Development (TSX: PEY) could be a great stock to hold forever. This Canadian energy firm is mainly focused on natural gas, oil, and natural gas liquids in Alberta’s deep basin. It’s currently trading at $26.85 per share with a market cap of $5.5 billion.
PEY stock has delivered strong returns, rising 48% over the past year. Over three years, it’s up 124%, and over five years, an impressive 397%. Right now, it offers a 4.9% dividend yield, paid monthly.
Peyto’s recent financials highlight its strong execution. In 2025, it generated funds from operations (FFO) of US$860.5 million, or US$4.24 per diluted share. Similarly, its free funds flow came in at US$375.2 million, allowing it to return US$264.9 million in dividends, or US$1.32 per share.
Meanwhile, the company’s production also remained strong, hitting a record 145 Mboe/d (thousand barrels of oil equivalent per day) in December 2025, up 7% YoY (year over year). Its capital efficiency stood at US$9,900 per boe/d (barrels of oil equivalent per day), with a solid 72% operating margin.
Now, Peyto plans to invest between US$450 million and US$500 million in 2026, focusing on high-return projects. Its disciplined hedging strategy and strong balance sheet should help it manage commodity price volatility while continuing to reward shareholders.
Killam Apartment REIT stock
Killam Apartment REIT (TSX: KMP.UN) operates a portfolio of apartments and manufactured home communities across Canada. It currently trades at $15.98 per unit with a market cap of $2 billion and offers a 4.5% dividend yield, paid monthly. While the stock declined 8.9% over the past year, the business continues to generate steady cash flow.
In 2025, same-property net operating income (NOI) grew 6.1% YoY, supported by higher rental rates and strong occupancy. Funds from operations rose 4.2% to US$1.23 per unit, while adjusted funds from operations increased 5.1% to US$1.04 per unit.
The company has also been actively optimizing its portfolio by selling non-core assets and reinvesting in higher-quality opportunities, including developments in Ottawa, New Brunswick, Waterloo, and Halifax.
For 2026, Killam plans to recycle $100 million to $150 million in capital and has paused its distribution reinvestment plan to prioritize unit buybacks. This reflects confidence in its valuation and a focus on improving shareholder returns.
