1 High-Yield Dividend Stock You Can Buy and Hold for a Decade of Income

This top TSX dividend stock to buy now not only offers an attractive high yield, but also reliable dividend growth for years to come.

Daniel Da Costa

Daniel joined the Motley Fool Canada team in 2019 with years of experience in banking and investing. Growing up the son of a proprietary stock trader and educator, Daniel’s always found joy in helping Canadians to improve their financial situations. With the Motley Fool, Daniel sees an even more rewarding way to impact Canadians positively. A student and great admirer of Warren Buffett, he’s always looking for investments offering growth at a reasonable price. Outside of finance, Daniel enjoys spending his time with family, sailing, and watching Formula One.

Published March 31, 3:45 pm EDT

| More on: AD.UN

Key Points

Alaris Equity Partners (TSX:AD.UN) is a high‑yield income stock (~7.1%) that generates cash by providing capital to private companies rather than operating a traditional business.
Its payments are often tied to revenue and include built‑in increases, and the firm’s diversified partner portfolio helped fund a ~9% distribution increase in late 2025.
Management targets a 65–70% cash‑flow payout (2025 actual ~57%), supporting dividend sustainability, though private‑company exposure can add volatility—best for long‑term passive‑income investors.

10 stocks we like better than Alaris Equity Partners Income Trust

When it comes to building passive income in the stock market, there’s no question that high-yield dividend stocks are some of the best and most compelling investments you can buy.

However, with that in mind, one of the biggest mistakes investors often make is chasing attractive dividend yields without fully understanding the business behind them.

Just because a stock offers a high yield doesn’t mean it’s a good long-term investment. In fact, some of the highest-yielding stocks can often be the riskiest if that income isn’t sustainable.

That’s why, when you’re looking for a stock you can buy and hold for a decade, the most important thing isn’t just the yield; it’s the reliability of the cash flow that funds the dividend.

What that means is that you need to look for a business that can consistently generate income through different economic environments, not just when conditions are perfect. Ideally, you want a company that can actually grow that income over time as well.

And when it comes to high-yield dividend stocks that have the potential to continue growing their dividend payments over time, there’s no question that one of the best to buy now is Alaris Equity Partners (TSX:AD.UN).

Alaris offers a yield of more than 7.1% today, but more importantly, it generates that income in a very different way than most traditional dividend stocks.

businessmen shake hands to close a deal — Source: Getty Images

Why Alaris is different from traditional income stocks

What makes Alaris unique, and one of the main reasons why it’s a top high-yield dividend stock to buy for long-term income, is its business model.

Instead of operating a traditional business like a bank, utility, or store, Alaris provides capital to private companies in exchange for ongoing distributions. So, it’s essentially acting as a partner to a portfolio of private businesses. Furthermore, one of the main advantages of this business model is how those distributions are structured.

In many cases, the payments Alaris receives are tied more to revenue than net income, which makes them much more stable.

Because even if a business is dealing with rising costs or short-term pressure on margins, revenue is usually far less volatile than profits.

That helps protect the cash flow Alaris generates, which in turn supports its dividend.

On top of that, many of these agreements include built-in increases over time based on performance. So not only are you getting a high starting yield, but there’s also the potential for that income to grow over time as its partners expand their operations.

And because Alaris is diversified across multiple industries and businesses, you’re not relying on a single company or sector to support your income.

Why it’s a high-yield dividend stock you can buy for the long haul

When you’re looking at any dividend stock, but especially one with a yield this high, the biggest question is always whether the dividend is actually sustainable.

In Alaris’ case, the company consistently aims to keep its payout ratio at roughly 65% to 70% of cash flow, and in 2025, it actually reported a payout ratio of just 57%, showing how well the stock has performed recently.

Furthermore, the high-yield dividend stock also once again increased its distribution by roughly 9% in late 2025, which is a strong signal that it expects income to remain stable and continue to grow going forward.

How reliable is Alaris in the near term?

Given the uncertainty about the global economy, it makes sense to wonder how Alaris could hold up if the economic environment were to worsen.

First off, because Alaris partners with private businesses, a significant economic slowdown could impact some of those companies. Furthermore, the stock itself can be more volatile than traditional income stocks.

However, if you’re focused on building long-term passive income, that volatility matters a lot less than the consistency of the cash flow, which is diversified and proven to be considerably resilient over time.

And with a yield of more than 7.1% today, plus the potential for growth over time, Alaris is exactly the type of stock that can generate meaningful income over the next decade.

And when you consider that it’s not just about the yield today, it’s about owning a business that can continue paying you for years to come, it’s clear that Alaris is one of the best high-yield dividend stocks that you can buy today.