Dividend stocks can be powerful long-term wealth-building investments, offering investors the potential to benefit from both capital appreciation and recurring dividend income. However, dividends are not guaranteed and depend on a company’s financial performance, cash flow generation, and management’s capital allocation decisions. Therefore, investors should focus on high-quality businesses with resilient operations, healthy cash flows, and a proven track record of rewarding shareholders through consistent dividend payments. Reinvesting these dividends can further amplify compounding and significantly boost long-term returns.
Against this backdrop, let’s explore two high-quality dividend stocks that could suit patient investors seeking to build substantial wealth over the long term.
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Fortis
Fortis (TSX: FTS) is a leading Canadian utility that operates nine regulated utility businesses and provides electricity and natural gas to approximately 3.5 million customers across Canada, the United States, and the Caribbean. With a predominantly regulated asset base and a focus on lower-risk transmission and distribution operations, Fortis generates relatively predictable cash flows and remains less exposed to economic cycles and commodity price volatility. This resilient business model has supported consistent financial performance and long-term shareholder value creation.
Over the past 20 years, Fortis has delivered an average total shareholder return of approximately 9.8%. The utility has also increased its dividend for 52 consecutive years and currently offers a forward yield of approximately 3.4%, highlighting its strong track record of rewarding shareholders.
Looking ahead, rising economic activity, transportation electrification, and the rapid expansion of AI-powered data centres could drive demand for electricity and natural gas, creating additional growth opportunities for Fortis. To capitalize on these trends, the company is executing a $28.8 billion capital investment plan, which could expand its rate base at an annualized rate of approximately 7% to $57.9 billion by the end of 2030. Alongside this investment program, Fortis continues to pursue operational efficiencies, disciplined capital allocation, and technological innovation to manage costs and improve affordability for customers.
Supported by its expanding regulated asset base and growing demand for essential utility services, Fortis expects to deliver steady financial growth in the coming years. Management is also targeting annual dividend growth of 4% to 6%, further enhancing the stock’s appeal for long-term investors seeking stability, income, and sustainable growth.
TC Energy
Another dividend stock that could be an excellent choice for long-term wealth creation is TC Energy (TSX: TRP). The company operates an extensive natural gas pipeline network alongside a portfolio of power-generation assets with approximately 4.7 gigawatts of capacity. Its regulated assets and long-term take-or-pay contracts provide relatively predictable cash flows, insulating its financial performance from commodity price volatility and broader economic fluctuations. This resilient business model has supported strong long-term shareholder returns, with TC Energy delivering a total return of approximately 880% over the past 20 years, equivalent to an annualized return of around 12.1%. The company has also increased its dividend for 26 consecutive years and currently offers a forward yield of approximately 5%.
Looking ahead, rising natural gas production and consumption across North America should continue to support demand for TC Energy’s extensive pipeline infrastructure. The company is expanding its asset base to capitalize on these trends and has already placed approximately $2 billion of projects into service during the first two quarters of the year. It remains on track to bring roughly $3.5 billion of projects into service this year, further strengthening its earnings base.
TC Energy also has approximately $20 billion of projects in its development pipeline, providing a substantial runway for future growth. Supported by these investments, management expects adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to reach between $12.6 billion and $13.1 billion by 2028, with the midpoint representing annualized growth of approximately 5.4%.
With predictable cash flows, an extensive infrastructure network, a long track record of dividend growth, and a sizable development pipeline, TC Energy offers an attractive combination of income, stability, and long-term growth. As a result, the stock could be a compelling addition to a long-term wealth-building portfolio.
