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.

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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.

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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.

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