Dividend stocks can help retirees generate recurring income. However, dividends are never guaranteed and can be reduced or suspended when a company faces financial pressure. For this reason, retirees should focus on dividend stocks backed by strong fundamentals such as resilient revenue, the ability to deliver profitable growth, and strong balance sheets. Moreover, look for companies with a durable dividend distribution history and sustainable payouts.
Companies with those characteristics are better positioned to continue rewarding shareholders through dividend payments and growth across different economic conditions and market cycles.
Against this background, here are two Canadian stocks retirees can probably hold for 10 whole years.
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Dividend stock for retirees #1: TC Energy
For retirees looking for a dependable dividend stock, TC Energy (TSX: TRP) could be worth holding for the next decade. The company has a strong history of rewarding shareholders, a relatively stable business model, and visibility into its future distributions, making it a compelling income investment.
TC Energy transports and stores natural gas and has investments in power generation. Its resilient operating structure supports its payouts. Most of its earnings are driven by regulated operations or long-term contracts. These include take-or-pay agreements with financially solid customers. In fact, about 98% of the company’s comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) comes from regulated assets or long-term contractual arrangements. That makes its cash flow more predictable and helps protect the business from sharp changes in commodity prices or economic conditions.
TC Energy’s track record of dividend growth is another reason retirees will find it attractive. It recently increased its quarterly dividend by 3.2% to $0.88 per share, marking its 26th consecutive year of dividend increases. Management expects the dividend to continue growing at roughly 3% to 5% annually, which could give retirees an income stream that grows gradually over time.
Looking ahead, TC Energy’s long-life infrastructure assets, supported by long-term commercial arrangements, are likely to drive its financials and dividend payments. TC Energy also has a solid investment pipeline. Its $22 billion secured capital program through 2031 will support its growth and dividend payouts.
TC Energy’s relatively predictable cash flow, a long record of dividend increases, exposure to growing natural gas demand, and a substantial pipeline of secured projects make it a reliable income stock for retirees.
Dividend stock for retirees #2: Canadian Utilities
Canadian Utilities (TSX: CU) is another reliable stock for retirees to generate worry-free income. The company operates in the defensive utility sector and has an impressive history of rewarding shareholders through consistent dividend increases.
Canadian Utilities has raised its dividend for 54 consecutive years, the longest dividend-growth record among publicly traded Canadian companies.
The utility company benefits from a portfolio of regulated and contracted assets that generates low-risk earnings, supporting its payouts across market cycles.
Between 2026 and 2030, Canadian Utilities expects to invest close to $12 billion in regulated utility infrastructure. These investments should expand the company’s rate base over time and contribute to steady, long-term earnings growth. At the same time, Canadian Utilities is pursuing additional long-term contracts which are likely to strengthen its earnings and cash flow.
Overall, its defensive business model, ongoing infrastructure investment, and predictable earnings provide a strong foundation for continued dividend growth. For retirees seeking dependable income, Canadian Utilities remains a compelling long-term investment option.
