Dividend-paying companies return a portion of their profits to shareholders through regular dividend distributions, allowing investors to benefit from both capital appreciation and a steady stream of income. By reinvesting these payouts, investors can further enhance their long-term return potential by harnessing the power of compounding. However, dividends are not guaranteed and remain subject to a company’s financial performance and management’s discretion. Therefore, investors should focus on high-quality dividend stocks backed by resilient businesses, sustainable cash flows, and a strong track record of shareholder returns to improve their prospects for long-term wealth creation.
Against this backdrop, let’s look at two quality dividend stocks that are ideal for long-term investors.
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Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS) could be an attractive dividend stock for income-focused investors, supported by its diversified financial services operations and broad geographic presence. Its diverse revenue streams provide a relatively stable earnings base, enabling the bank to maintain a long history of shareholder distributions, including uninterrupted dividend payments since 1833. Scotiabank has also increased its quarterly dividend at an annualized rate of approximately 4.5% over the past decade and currently offers a healthy yield of 3.6%.
Looking ahead, Scotiabank is pursuing a strategic repositioning to expand its higher-return North American operations while reducing exposure to riskier, lower-return Latin American markets. This transformation could strengthen the stability and profitability of its earnings over the long term, supporting more sustainable dividend growth. As part of this strategy, the bank is pursuing the acquisition of MapleMark Bank to strengthen its presence in the fast-growing Dallas market. It is also seeking to acquire the remaining shares of Scotia Group Jamaica Limited, which could provide greater control over the business while improving capital allocation and operational efficiency.
Meanwhile, a relatively higher interest-rate environment could continue to support Scotiabank’s lending operations and net interest income. The bank’s recently announced share-repurchase program for up to 15 million shares through April 2027 could further enhance shareholder returns by reducing its share count by approximately 1.2%. Given its resilient business model, long-standing dividend record, and strategic growth initiatives, Scotiabank appears well positioned to continue delivering attractive income and shareholder returns, making it a compelling dividend investment for long-term investors.
TC Energy
Another attractive dividend stock is TC Energy (TSX:TRP). The energy infrastructure company operates an extensive natural gas pipeline network and a portfolio of power generation assets with approximately 4.7 gigawatts of capacity. Its highly predictable business model generates around 98% of earnings from regulated assets and long-term take-or-pay contracts, providing substantial cash-flow visibility. This stability has enabled TC Energy to increase its dividend for 26 consecutive years, while its shares currently offer a healthy forward yield of 4%.
Looking ahead, rising natural gas production across North America should continue to support demand for TC Energy’s pipeline infrastructure and related services. The company is also expanding its asset base to capitalize on these favourable industry trends. After placing approximately $2 billion of projects into service year to date, TC Energy expects to bring another $3.5 billion of projects online this year. Beyond that, the company has approximately $20 billion of additional projects in its development pipeline, providing a meaningful runway for long-term growth. Management expects adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to reach $12.6–$13.1 billion by 2028, with the midpoint representing an annualized growth rate of approximately 5.4%.
With a resilient business model, visible growth opportunities, and a robust development pipeline, TC Energy appears well positioned to support continued dividend growth. These attributes make the company an appealing option for income-focused investors seeking reliable dividends and long-term wealth creation.
