Dividend stocks can be effective tools for long-term wealth creation, offering investors the potential for both capital appreciation and a steady stream of income. Reinvesting these dividends can further accelerate wealth accumulation through compounding. Moreover, companies with resilient businesses and consistent dividend policies can provide stability during periods of economic uncertainty.
However, dividends are not guaranteed and depend on a company’s financial performance, cash flows, and management decisions. Therefore, investors should focus on quality businesses with established operations, a strong history of dividend payments, and sustainable long-term growth prospects. Against this backdrop, let’s look at two quality dividend stocks that could suit a long-term portfolio.
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Enbridge
Enbridge (TSX: ENB) is a diversified energy infrastructure company with more than 200 assets across North America, including an extensive oil and natural gas pipeline network, natural gas utility businesses, and renewable energy assets. Approximately 98% of its earnings come from regulated assets and long-term take-or-pay contracts, while about 80% are indexed to inflation. This highly contracted business model provides greater resilience against rising costs, commodity-price fluctuations, and broader economic uncertainty. It has also supported more than seven decades of dividend payments and 31 consecutive years of dividend increases. With a quarterly payout of $0.97 per share, Enbridge currently offers a forward yield of approximately 5.75%.
Meanwhile, rising oil and natural gas production across North America is driving demand for energy infrastructure, creating additional growth opportunities for Enbridge. The company has identified approximately $50 billion in potential growth investments and plans to deploy $10–$11 billion annually toward these projects. These investments could support annualized earnings and cash-flow growth of approximately 5% through the end of the decade. Enbridge has returned approximately $38 billion to shareholders over the past five years and expects to return another $40–$45 billion over the next five years. With reliable cash flows, an attractive dividend yield, and a visible growth pipeline, Enbridge could remain a compelling option for long-term, income-seeking investors.
Bank of Nova Scotia
Another dividend stock offering an attractive opportunity is Bank of Nova Scotia (TSX: BNS), which provides a diversified range of financial services across multiple markets. Its diversified operations help support relatively stable earnings and cash flows, enabling the bank to maintain an uninterrupted dividend record dating back to 1833. Scotiabank has also increased its dividend at an annualized rate of 4.5% over the past decade and currently offers a healthy yield of approximately 3.45%.
The bank recently delivered a strong third-quarter performance, with adjusted net income rising 18% to $2.97 billion and adjusted earnings per share increasing 21.3% to $2.28. Its adjusted return on equity also improved to 14.2%, allowing Scotiabank to reach its medium-term 14% target well ahead of its fiscal 2028 deadline. Reflecting its strong earnings and capital position, the bank has returned approximately $6.3 billion to shareholders this year through dividends and share repurchases.
Meanwhile, Scotiabank is repositioning its business toward its more profitable North American operations while reducing its exposure to less profitable Latin American markets. Its core lending business could also benefit from an environment in which interest rates remain relatively elevated amid persistent inflation. In addition, the bank has launched a share repurchase program covering up to 15 million shares, which could reduce its outstanding share count by approximately 1.2%. With its long dividend history, improving financial performance, and ongoing strategic repositioning, Scotiabank could be an attractive option for investors seeking long-term passive income.
