2 Dividend Stocks I’d Be Comfortable Holding for the Next 5 Years

Strong dividends and solid fundamentals make these Canadian dividend stocks stand out.

Key Points
  • Pembina Pipeline (TSX:PPL) offers stable cash flow and a strong dividend backed by energy infrastructure.
  • Power Corporation of Canada (TSX:POW) brings diversified financial exposure with steady long-term growth.
  • Both dividend stocks combine reliable income with the potential for consistent returns over the next five years.

If you’re building a portfolio you don’t want to constantly monitor, Canadian dividend stocks can be a reassuring place to start. It’s appealing to have investments working in the background and generating income, but the real challenge is finding stocks you won’t second-guess every few months. Let’s take a closer look at two of the best dividend stocks that you could feel comfortable holding for the next five years – and why they stand out.

woman considering the future

Source: Getty Images

Pembina Pipeline stock

Speaking of quality dividend stocks in Canada, Pembina Pipeline (TSX: PPL) could be a reliable company to consider from the energy infrastructure sector. Its network of pipelines, processing facilities, and export terminals plays a critical role in moving oil and natural gas across key markets. After climbing by 14% over the last year, PPL stock currently trades at $59.29 with a market cap of $34.5 billion. More importantly, it offers an appealing 4.8% dividend yield at the current market price.

What makes Pembina even more interesting is the stability of its business model. Much of its revenue comes from long-term, fee-based contracts, which helps reduce its exposure to commodity price swings.

Despite recent macroeconomic worries, the company continues to deliver solid results. It reported full-year earnings of $1.7 billion and EBITDA (earnings before interest, taxes, depreciation, and amortization) of $4.3 billion in 2025. Pembina’s pipeline and facilities volumes reached a record 3.7 million barrels of oil equivalent per day last year, reflecting stable demand for its services.

Moreover, Pembina is moving forward with pipeline expansion projects worth $425 million to support rising volumes in Western Canada. At the same time, its long-term agreements tied to the Cedar liquefied natural gas (LNG) project highlight growing demand for export infrastructure.

With a disciplined capital allocation strategy and a focus on growing fee-based cash flow, Pembina offers a great combination of income stability and gradual growth that most long-term investors prefer.

Power Corporation of Canada stock

For income investors seeking diversification without leaving the comfort of a single stock, Power Corporation of Canada (TSX: POW) could be worth considering. This holding company has major interests in insurance, wealth management, and investment platforms, offering built-in diversification across financial services.

Following a 44% jump over the last year, POW stock now trades at $73.04 with a market cap of $42.2 billion. It also offers a 3.7% dividend yield.

Power Corporation’s business is built around long-term value creation, and its latest results show that strategy is paying off. In 2025, the company reported adjusted net earnings of $3.4 billion, up from $3 billion a year earlier, reflecting consistent growth across its core businesses.

A big part of this strength comes from its major subsidiaries. Great-West Lifeco and IGM Financial both delivered solid earnings growth, with IGM reporting record adjusted net earnings and assets under management and advisement climbing to $310.1 billion. At the same time, Power Corporation’s balance sheet also looks stronger. Its adjusted net asset value per share jumped nearly 42% year over year to $85.77 last year, driven largely by gains in its publicly traded holdings.

Overall, Power Corporation’s improving earnings, a stronger asset base, and consistent capital returns make it an attractive dividend stock for long-term investors.

Fool contributor Jitendra Parashar has positions in Pembina Pipeline. The Motley Fool recommends Pembina Pipeline. The Motley Fool has a disclosure policy.

More on Dividend Stocks

ETFs can contain investments such as stocks
Dividend Stocks

How to Use a TFSA to Generate $200 in Monthly Tax-Free Income

Use a TFSA to build $200 in monthly tax-free income with XEI and ZRE. See how these ETFs work and…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

Smart Ways to Invest Extra Income and Say Goodbye to Financial Stress

Canadians have ways to make their extra income work as hard as they do and say goodbye to financial stress.

Read more »

Two seniors walk in the forest
Dividend Stocks

Sun Life Stock Pays 3.3%: How Much to Invest for $100 a Month in Dividends

Sun Life Financial (TSX:SLF) might be a massive bargain after Thursday's vicious plunge as stock markets sold off hard.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn Your TFSA Into $1,000 a Month in Tax-Free Income

Build toward $1,000 a month in tax-free income with a TFSA. See how Enbridge, Scotiabank and ZWC could help, and…

Read more »

customer fills up car with gasoline
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

A safety fund equivalent to 3 to 6 months of living expenses is generally the baseline buffer that Canadians would…

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

Still Up Double Digits This Year: Should You Still Invest in TSX Stocks After Thursday’s Dramatic Drop?

The TSX has gained about 136% over the past decade. So, stay invested, dollar‑cost average, and maintain diversification. 

Read more »

Real estate investment concept
Dividend Stocks

Intact Stock: Would I Buy It for Growth, Income, or Both?

Intact’s modest yield makes profitable long-term growth the main attraction, with catastrophe losses putting the next purchase to a test.

Read more »

hiker with backpack in the mountains
Dividend Stocks

2 Top Canadian Dividend Stocks for $1,850 in Annual Passive Income

With reliable cash flows, high dividend yields, and strong growth prospects, these two Canadian stocks suit income-seeking investors.

Read more »