If you’re investing in quality dividend stocks, you might not have to settle for watching your shares barely move while you collect the quarterly payout. I’d much rather own a fundamentally solid company that sends me cash today while becoming more valuable over time.
Great-West Lifeco (TSX: GWO) has done a pretty impressive job of delivering both. Its long-term shareholders have enjoyed strong capital appreciation, but the company hasn’t stopped behaving like an income stock along the way. And I think what happens next is more important than admiring its past performance.
In this article, I’ll explain why Great-West Lifeco continues to stand out to me as a Canadian dividend champion that investors could buy and hold for life.
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Great-West Lifeco stock
Headquartered in Winnipeg, Great-West is a financial services holding firm with operations across Canada, the United States, and Europe. Through strong brands such as Canada Life, Empower, and Irish Life, it provides retirement, wealth, group benefits, insurance, and risk solutions.
GWO shares currently trade at $88.58 per share with a market cap of $79.5 billion. The stock has climbed 31% year to date and 63% over the last year. In fact, Great-West shares are up about 182% over the last 10 years. On top of that, it also rewards investors with reliable dividends, with its yield standing at 3% at the current market price.
Strong earnings support the investment case
In the second quarter of 2026, the financial services company’s base earnings climbed 11% year over year (YoY) to $1.3 billion. Much of that momentum came from the United States, as that segment posted a 34% YoY rise in base earnings to $458 million. The improvement reflected higher fee income from increased assets, strong markets, positive plan and wealth net inflows that offset participant outflows, better credit experience, and operating leverage across its retirement and wealth businesses.
Adding to the optimism, its capital and risk solutions segment’s base earnings jumped 35% YoY to $310 million, mainly due to continued strength in the new capital solutions business.
Meanwhile, Great-West’s base return on equity improved to 19.3% from 17.4% a year ago. That allowed the company to achieve its medium-term objective of at least 19% for the second consecutive quarter.
More growth behind the dividend
Beyond strong financials, Great-West is also building a larger business that could support shareholder returns over time. Notably, the company ended June with about $3.7 trillion in total client assets, up 12% from the end of 2025. Great-West also maintained a Life Insurance Capital Adequacy Test ratio of 128% and held $2.5 billion in holding-company cash.
That financial flexibility gives it plenty of room to invest while continuing to reward shareholders. Recently, the company also closed the acquisition of Milliman’s retirement plan and benefits administration business for about US$340 million. This deal is expected to add to its base earnings in its first year.
That’s why I believe Great-West offers investors more than a 3% yield. Strong earnings growth, expanding client assets, and continued investment in its U.S. retirement platform could support its growth over the long run. For investors seeking lifetime income alongside capital appreciation, this Canadian dividend champion remains an attractive stock to buy and hold.
