Some of the most legendary investors in history didn’t build their fortunes by constantly jumping from one exciting stock to another. Instead, many focused on owning strong businesses and giving them time to create value. That’s exactly what the Foolish investing philosophy encourages investors to embrace, and I believe quality Canadian dividend stocks could make that approach even more rewarding.
In this article, I’ll highlight two Canadian dividend powerhouses that could help you earn steady passive income while enhancing your portfolio’s long-term value.
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Sun Life Financial stock
The first Canadian dividend stock I’d consider buying right now is Sun Life Financial (TSX: SLF), mainly because of its diversified financial services business and encouraging earnings growth. This Toronto-based company provides insurance, health benefits, wealth management, and investment solutions across several international markets.
Following a 28% surge over the last year, SLF stock currently trades at $104.44 per share, giving it a market cap of $58 billion. At this market price, it offers a 3.8% annualized dividend yield.
Interestingly, Sun Life recently increased its quarterly dividend from $0.96 to $1 per share, reflecting its continued focus on rewarding shareholders.
Besides its attractive dividends, Sun Life’s strengthening financials give investors another reason to consider this stock. In the third quarter, its underlying net profit improved by 9% year-over-year (YoY).
This growth was mainly driven by stronger business performance in Canada, Asia, and U.S. medical stop-loss insurance, along with higher fee-related earnings from GreenOak. In the latest quarter, the company’s assets under management also rose 3% YoY to nearly $1.7 trillion.
The Canadian insurer’s planned partnership with Wilton Re could strengthen GreenOak’s insurance asset management operations. Moreover, Sun Life is expanding its digital capabilities and plans to invest $5 billion in Canadian infrastructure over five years.
Given its diversified operations, improving underlying earnings, and higher dividend payouts, Sun Life could be an attractive stock for long-term investors.
TC Energy stock
Another Canadian dividend powerhouse worth adding to your portfolio is TC Energy (TSX: TRP). This Calgary-headquartered energy infrastructure giant operates a huge natural gas pipeline network across Canada, the United States, and Mexico, alongside its power generation business.
Over the last year, TRP stock has gained 20% to currently trade at $89.99 per share with a market cap of $93.8 billion. It also rewards shareholders with attractive quarterly dividends of $0.88 per share, giving it a 4% annualized dividend yield.
In the September 2026 quarter, TC Energy’s comparable earnings jumped 22% YoY to nearly $1 billion. Similarly, its comparable EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed 13% YoY, with the help of stronger U.S. pipeline earnings, improved asset availability, and favourable commercial agreements.
Recently, the company approved about $3 billion worth of new growth projects, including pipeline expansions aimed at meeting rising natural gas demand from power generators and data centres in the U.S. market.
More importantly, TC Energy expects its comparable EBITDA to grow at an annualized rate of 5% to 7% through 2031.
With nearly 98% of its comparable EBITDA coming from regulated assets or long-term take-or-pay contracts, TC Energy benefits from relatively predictable earnings. This stability, combined with its attractive dividend yield and expanding project portfolio, makes it a compelling Canadian dividend stock to consider for long-term income and growth.
