The Best Dividend Stocks to Buy and Hold Forever

An extended investment horizon allows investors to ride out the market’s spikes and dips. This strategy is particularly effective for income-focused investors looking to counter short-term volatility, while receiving dividends for years, if not decades.

Canadians can have the best of both worlds, peace of mind and recurring cash flows, by taking positions in the best dividend stocks. Canadian Utilities (TSX:CU), National Bank of Canada (TSX:NA), and TC Energy (TSX:TRP) could be your buy-and-hold forever stocks.

Anchor stock

Canadian Utilities, a $13 billion energy infrastructure company, is TSX’s first dividend king. The core businesses are electricity and natural gas transmission and distribution, as well as energy storage, energy generation, and industrial water solutions. Pursuing opportunities to expand into new markets and business lines is an ongoing concern.

CU’s 54 consecutive years of dividend increases provide the highest degree of passive income certainty. At $48.48 per share (+15.7% year-to-date), the dividend yield is 3.8%. According to management, dividends grow alongside sustainable earnings growth. Katie Patrick, Chief Financial and Investment Officer of Canadian Utilities, said utilities are a strong generator of the company’s cash flow.

The new $12 billion five-year capital plan will expand the regulated utility infrastructure in Alberta and Australia. Moreover, the regulated rate base would grow to $23.2 billion by 2030 from $16.6 billion in 2025.

Return leader

National Bank of Canada has consistently been the return leader among the Big Six lenders. As of this writing, NA is up 19.4% year-to-date versus the broader market’s plus-7.3% gain. The share price is $204.94, with a corresponding dividend yield of 2.4%. Its total 10-year return is plus-622.7%, representing a compound annual growth rate (CAGR) of 21.9%.

The $80.5 billion bank acquired Canadian Western Bank in February 2025. It instantly expanded NA’s national commercial banking presence in Alberta and British Columbia. In Q1 fiscal 2026 (three months ending January 31, 2026), net income rose 25% year-over-year to $1.3 billion.

Canada’s sixth-largest bank is on track to realize accelerated revenue growth and improved net margins in the ensuing quarters. The bank is due to report its Q2 fiscal 2026 earnings on May 27, 2026.

Energy giant

TC Energy completes the all-weather dividend portfolio. The large-cap stock in the heavyweight energy sector is an income generator. This $67.5 billion specialized natural gas and power infrastructure company is also a dividend growth stock. The 3.2% dividend hike in February this year marked 26 consecutive years of dividend increases.

TRP trades at $91.98 per share, up nearly 23% year-to-date. If you invest today, the yield is 3.8%. Like most energy constituents, TC Energy benefits from the oil price shock in 2026. Its President and CEO, François Poirier, said, “Constructive market conditions continue to translate into attractive, disciplined growth opportunities. He notes sustained growth in the natural gas and power demand in the United States.

Income engine

An investment portfolio formed around Canadian Utilities, National Bank of Canada, and TC Energy is a self-sustaining income engine. Buy the stocks today, and you never have to sell.

The post The Best Dividend Stocks to Buy and Hold Forever appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Utilities right now?

Before you buy stock in Canadian Utilities, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Canadian Utilities wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

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* Returns as of April 20th, 2026

More reading

• The Canadian Stock I Simply Refuse to Sell
• 5 TSX Stocks to Buy for a Calm, Boring, Winning Portfolio
• Here’s the Average Canadian TFSA and RRSP at Age 35
• 2 Dividend Stocks Worth Holding for the Next 7 Years
• 5 TSX Dividend Stocks I’d Buy If the TSX Pulls Back

Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.