1 Canadian Dividend I’d Depend on for a Decade

A dividend stock earns decade-long trust when it does three things well, year after year. It keeps sending cash to shareholders through good markets and bad ones. It owns businesses that people still need in a recession, like insurance, retirement services, and wealth management. And it keeps a disciplined capital plan, so dividends and buybacks do not rely on luck or one-off wins. The best part is the patience premium. When you hold a steady dividend payer for a long time, you let time do the heavy lifting. And that’s why this dividend stock belongs on your radar.

POW

Power Corporation of Canada (TSX:POW) fits that “quiet compounder” profile as it sits on top of a few big Canadian financial engines. It is a holding company with major stakes in Great-West Lifeco, IGM Financial, and Groupe Bruxelles Lambert, plus offers exposure to alternative platforms like Sagard and Power Sustainable. In short, it earns money from insurance, retirement plans, wealth management fees, and long-term investing. That mix can look boring on the surface. Boring can pay very well.

The last year has reminded investors that “boring” can still move fast. Power Corporation’s share price jumped roughly 68% in the last year, which is not what most people expect from a dividend-focused financial holding company. That run has also come with a wide trading range, with a 52-week low and high that show how quickly sentiment can swing even for a steady name.

Zoom out a little and the story looks even more consistent. Over three and five years, the returns have stayed strong, helped by rising markets and the earnings power of its underlying businesses. That said, a strong run can tempt investors to assume the next decade will look just as smooth. It might not. Financials can wobble when markets fall, and holding companies can trade at discounts for longer than anyone expects.

Earnings support

The recent earnings snapshot helps explain why the market has warmed up to it. In its third quarter of 2025, Power Corporation reported net earnings from continuing operations of $703 million, or $1.10 per share. Adjusted net earnings from continuing operations came in at $863 million, or $1.35 per share. Those numbers point to solid momentum under the hood, not just a stock that got dragged higher by the index.

Capital returns also matter for a long-hold dividend name, and Power Corporation has been active. It declared a quarterly dividend of $0.6125 per share, payable January 30, 2026. It also bought back 7.4 million shares for $382 million year-to-date as of September 30, 2025, and it even joined Great-West Lifeco’s buyback on a pro-rata basis. Dividends plus buybacks can make the next decade feel a lot shorter, in a good way.

The valuation looks reasonable, but it is not a screaming bargain after the run. Power Corporation shows a trailing price-to-earnings ratio of 15.5 times earnings, with a 3.3% dividend yield. One detail I like here is the dividend stock’s adjusted net asset value per share sat at $72.24 at September 30, 2025, up 19.5% from the end of 2024. If the dividend stock price hovers near that level, you’re not wildly overpaying for the underlying stakes.

Bottom line

So why trust the dividend stock for the next decade? It gives you a dividend that comes from a diversified financial base, not a single product cycle. It has a real habit of returning capital, not just talking about it. And it owns businesses that tend to stay relevant even as the economy changes, as people keep saving, retiring, and buying insurance. All while paying a solid dividend, which could bring this in from a $7,000 investment.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTPOW$72.4296$2.45$235.20Quarterly$6,952.32

The risk is simple: markets can slump, and that can pressure fee income and sentiment. But if you want a Canadian dividend stock that can quietly compound while still letting you sleep at night, Power Corporation makes a strong case.

The post 1 Canadian Dividend I’d Depend on for a Decade appeared first on The Motley Fool Canada.

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More reading

• 3 Must-Have Blue-Chip Stocks for Canadian Investors
• Start 2026 Strong: 3 Canadian Dividend Stocks Built for Steady Cash Flow
• A Recession-Resistant Dividend Stock for Lifelong TFSA Income
• A Decade From Now, You’ll Be Glad You Bought These Magnificent TSX Dividend Stocks
• My Favourite Dividend Stocks for Canadians to Buy in 2026

Fool contributor Amy Legate-Wolfe 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.