Passive income doesn’t need to come from the biggest yield on the TSX. Sometimes the better move is locking in companies with real assets, visible cash flow, and room to keep paying for years. That’s why AltaGas (TSX: ALA) and Gibson Energy (TSX: GEI) look like two dividend stocks worth buying now for long-term income. Let’s get into why.
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ALA
I’ll start with AltaGas. This isn’t the highest-yield stock on the market. In fact, its yield sits at 2.5%, so not enormous. But income investors shouldn’t ignore it. AltaGas offers something just as important: dividend growth backed by utilities, midstream assets, and rising earnings power.
The company raised its 2026 annual dividend by 6% to $1.34 per share. It also expects dividend growth of 5% to 7% annually through 2030. That’s the key number for investors thinking beyond the next cheque. A stock yielding around 2.5% today can become much more powerful if the payout keeps growing year after year.
AltaGas has two main engines. Its utilities business serves customers in regulated markets, which can provide stable earnings. Its midstream business connects Canadian natural gas liquids to global markets, including liquefied petroleum gas exports. That gives the company both defensive cash flow and growth potential.
The latest quarter was strong. AltaGas reported normalized earnings before interest, taxes, depreciation, and amortization (EBITDA) of $818 million in the first quarter of 2026, up from $689 million last year. Utilities normalized EBITDA rose 11%, while midstream normalized EBITDA jumped 39%. Management also said it expects 2026 results near the top end of its guidance.
That momentum gives the dividend story more weight. AltaGas isn’t just raising the payout because investors want income. It’s raising it while growing earnings and investing in new projects.
GEI
Gibson Energy offers the higher-yield option. The company owns and operates liquids infrastructure, including storage terminals, pipelines, processing assets, and related energy logistics. These are essential assets tied to moving and storing oil and refined products, especially around major hubs such as Hardisty.
Gibson raised its quarterly dividend 5% to $0.45 per share in 2026. That works out to $1.80 annually, giving the stock a yield around 6% at recent prices. For a passive-income investor, that’s a meaningful payout from a company focused on infrastructure cash flow.
The business isn’t risk-free, but it has a clear income appeal. In the first quarter of 2026, Gibson’s infrastructure adjusted EBITDA reached $156 million. That infrastructure segment is the core of the story because it relies more on long-term assets and customer relationships than on commodity price swings.
Gibson is also expanding. The company advanced its infrastructure strategy through the Chauvin acquisition and sanctioned a Hardisty connection project. These moves should strengthen its asset base over time and could help support cash flow as new assets contribute.
Bottom line
Together, AltaGas and Gibson offer two different versions of passive income. AltaGas brings dividend growth and a utility-backed platform. Gibson brings a higher yield and liquids infrastructure exposure. Combined, even $7,000 in each can bring in ample income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| ALA | $54.15 | 129 | $1.34 | $172.86 | Quarterly | $6,985.35 |
| GEI | $29.61 | 236 | $1.80 | $424.80 | Quarterly | $6,987.96 |
For investors building a long-term income portfolio, these are the kinds of dividend stocks worth locking in before the market fully prices in their cash-flow strength.
