When investing for the long term, say 20 years, consider dividend stocks that consistently pay and grow their dividends. These companies often have durable business models, strong cash flows, and the financial resilience to navigate changing economic conditions.
For instance, companies like Enbridge (TSX: ENB) in the energy sector and Fortis (TSX: FTS) in the utility sector have been trustworthy buy-and-hold investments for decades, providing steady passive income. Both of these companies have consistently paid and increased their dividends.
While Enbridge and Fortis are reliable dividend payers, there is one Canadian dividend stock from the banking sector I’d trust for the next 20 years.
Source: Getty Images
Toronto-Dominion Bank is a reliable dividend stock
Toronto-Dominion Bank (TSX: TD) is one of the top Canadian stocks I’d trust for the next 20 years. Its long track record of dividend payments, consistent dividend growth, and sustainable payout ratio support its investment case.
Beyond reliable dividend income, TD also has the potential to generate market-beating capital gains, making it an attractive long-term investment.
Notably, the financial services giant has been paying dividends for more than a century and a half. Since 2016, it has increased its annual dividend at a compound annual growth rate (CAGR) of 8%. Currently, TD pays a quarterly dividend of $1.12 per share, representing a yield of more than 2.6% based on its recent closing price.
TD has also delivered impressive share price appreciation. Its stock has grown at a CAGR of about 32% over the past three years, generating total capital gains of 128.6%.
With TD continuing to grow its dividend while maintaining a strong underlying business, investors could benefit from dependable income and long-term capital appreciation.
TD’s growth outlook remains solid
Toronto-Dominion Bank is well positioned to continue rewarding shareholders, supported by its ability to generate profitable growth. In the third quarter of 2026, the bank’s adjusted earnings per share (EPS) increased 26% year over year, driven by strong performance across its Canadian businesses and Wholesale Banking segment, along with growing momentum in U.S. Banking. Its return on equity (ROE) also improved significantly, reaching 16% compared with 13.2% a year earlier.
TD’s credit quality remains resilient, while its diversified business model and positive operating leverage continue to support earnings growth. Higher revenue and operating efficiency should further strengthen the bank’s bottom line and provide additional capacity for dividend growth.
TD also appears well positioned to achieve its fiscal 2029 targets of 7–10% adjusted EPS growth and a 16% ROE. Meanwhile, the bank maintains a sustainable long-term dividend payout ratio of 40–50%. With sufficient capital retained to pursue growth opportunities, TD appears to have ample flexibility to support both future expansion and shareholder returns.
The bottom line
Although TD is not the highest-yielding Canadian dividend stock, its growing earnings base and consistent history of dividend growth make it a reliable long-term income investment. As long as the bank continues to grow earnings while maintaining a sustainable payout ratio, shareholders can benefit from steadily rising dividends alongside potential capital appreciation over time.
Its dependable dividend, financial strength, and ability to deliver above-average capital gains are why TD remains one of the most trusted Canadian dividend stocks to hold for decades.
