2 Dividend Stocks to Create Long-Term Family Wealth

Dividend stocks are solid options for creating long-term family wealth as they encourage a mindset of ownership rather than speculation. Instead of relying on selling shares at the right moment, dividend stocks reward investors simply for holding on. That steady income can be reinvested year after year, allowing compounding to do the heavy lifting across decades.

IFC

Intact Financial (TSX:IFC) is Canada’s largest property and casualty insurer, offering coverage across auto, home, and commercial insurance markets in Canada, the United States, and the United Kingdom. Its products are deeply embedded in everyday life, as individuals and businesses require insurance regardless of economic conditions. This gives Intact a steady flow of premium income and the ability to adjust pricing over time to reflect changing risks. The dividend stock has also grown through disciplined acquisitions, strengthening its market position while maintaining a conservative underwriting culture. That balance between growth and risk management has helped Intact stand out as a leader in the insurance sector.

In its most recent earnings, Intact reported strong premium growth and solid underwriting performance. This reflects effective pricing strategies and disciplined risk selection. Higher interest rates also provided a tailwind, boosting investment income from the dividend stock’s large investment portfolio. Claims costs remained manageable despite ongoing inflation pressures, demonstrating Intact’s ability to adapt its pricing and coverage terms as conditions change. Management reaffirmed confidence in long-term earnings growth and capital strength, which supported another increase to the dividend.

Intact could be a solid dividend stock for long-term family wealth combining dependable cash generation with a proven commitment to dividend growth. The insurance business naturally produces recurring revenue, and Intact has shown it can consistently convert that revenue into profits while maintaining a strong balance sheet. Its dividend has increased steadily over many years, signalling management’s confidence in future cash flows. For families thinking long term, this reliability matters more than headline growth.

PPL

Pembina Pipeline (TSX:PPL) is one of Canada’s leading energy infrastructure companies, operating pipelines, processing facilities, and storage assets that move oil, natural gas, and natural gas liquids across North America. Unlike energy producers, Pembina doesn’t rely heavily on commodity prices. Its business is built on long-term, fee-based contracts that generate predictable cash flow regardless of short-term swings in oil or gas prices. This toll-road-style model makes Pembina a cornerstone dividend stock for investors who value stability and durability over speculation.

In its recent earnings, Pembina delivered steady results, supported by strong utilization across its pipeline and midstream assets. The dividend stock reported stable adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) and reaffirmed its cash flow outlook. This reflects resilient demand for its infrastructure services. Management also highlighted disciplined capital spending and progress on growth projects designed to enhance long-term earnings rather than chase risky expansion. Importantly for income investors, cash flow coverage of the dividend remained solid, reinforcing confidence in the payout.

Pembina could be a solid dividend stock for building long-term family wealth as it combines a high, reliable yield with the kind of business model that can endure for decades. Its dividend is supported by contracted cash flows and a conservative financial approach. For families investing through a TFSA or holding across generations, Pembina offers the rare mix of immediate income and long-term staying power. It’s the kind of dividend stock that can quietly pay year after year, helping turn patient investing into lasting family wealth.

Bottom line

If you’re looking for a dividend stock to give you not just a little wealth, but a lot of it, these are two solid options to get you started. Both dividend stocks provide endless income, with high yields that last. In fact, here’s what $7,000 invested in each stock could bring in right now.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTIFC$279.6525$5.32$133.00Quarterly$6,991.25PPL$52.81132$2.84$374.88Monthly$6,974.92

In short, Pembina and Intact are two solid dividend stocks that not only can you hold, but pass onto your grandkids.

The post 2 Dividend Stocks to Create Long-Term Family Wealth appeared first on The Motley Fool Canada.

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More reading

• TSX Today: What to Watch for in Stocks on Tuesday, December 16
• TFSA Investors: How Couples Can Earn $10,700 Per Year in Tax-Free Passive Income
• 3 Dividend Stocks Worth Holding Forever
• 3 Top Canadian Stocks to Enhance Your TFSA
• TFSA Investors: Buy These 3 Stocks For $1,500 Yearly Tax-Free Income

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Intact Financial and Pembina Pipeline. The Motley Fool has a disclosure policy.