1 Incredible Canadian Dividend Stock to Buy for Decades

A dividend stock can look magnificent as the market hands you two advantages at once. A better entry price and a higher yield. The great ones keep paying through boring years and messy years, because the cash flow stays steady. If the business also reinvests in growth, the dividend can rise while you hold. The warning sign stays simple, too. If the payout only looks safe when everything goes right, a dip can become a trap. So, let’s look at one incredible option.

EMA

Emera (TSX:EMA) is a Halifax-based utility company that owns regulated electric and natural gas utilities across Canada, the United States, and the Caribbean. Its roster includes Tampa Electric in Florida and Nova Scotia Power at home, plus other regulated utilities such as Peoples Gas and New Mexico Gas, alongside Caribbean and Atlantic Canadian operations. In plain terms, regulators set the rules of the road, and Emera earns a return by investing in long-lived assets like transmission lines, substations, gas pipes, and digital grid tools.

That regulated backbone is why EMA often feels calmer than the rest of the market, even when the share price wobbles. Over the past year, the dividend stock has been up 26%, with a dividend yield at 4.3%. That places it below its recent peak, and that matters, as utilities rarely go on sale in dramatic fashion. A modest pullback can be the whole opportunity, especially if you plan to hold for years.

Zoom out, and the pattern stays consistent. EMA tends to grind higher over time, then pause when bond yields jump, or markets get nervous about debt-heavy sectors. That’s not thrilling, but it’s the utility pitch: steady returns plus a dividend you can reinvest. You also get the comfort of a service people keep using in recessions, which can smooth out the emotional side of investing.

Into earnings

The latest earnings update shows the engine still works. In the third quarter of 2025, Emera delivered adjusted earnings per share (EPS) of $0.88 and reported EPS of $0.76, and it said adjusted EPS rose 9% year over year. Management pointed to strong performance at Tampa Electric as a key driver, as Florida demand keeps growing. For a regulated utility, small execution wins add up, as these flow through a large, long-lived asset base.

The bigger story is the runway it just laid out. Emera unveiled a $20 billion capital plan for 2026 to 2030 and extended its 7% to 8% rate base growth guidance through 2030, with about 80% of planned investment directed to Florida. The logic is straightforward. It spends on reliability, modernization, and storm hardening, then earns regulated returns on that larger rate base. If it executes, that visibility can support dividend increases that feel earned rather than forced, even in slower economic stretches.

Valuation looks fair for that mix of stability and visible investment. The dividend stock trades at 18.3 times earnings at the time of writing, with a 4.3% yield. That yield will not turn $10,000 into a fortune overnight, but it can compound nicely if you reinvest it. The main risks sit in financing costs, regulatory timing, and weather-driven volatility. Another surge in rates can pressure the stock price, even if the underlying business keeps improving. Right now, here’s what $10,000 could bring in through dividends alone.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTEMA$67.89147$2.91$427. 77Quarterly$9,980. 83

Bottom line

That’s why this dividend stock can be a magnificent buy-and-hold candidate after a pullback. It runs essential regulated utilities, it has a clear multi-year growth plan, and it pays a dividend designed for staying power. You still need patience, because utilities can drift for long stretches. But if you want a decades-long holding you can add to on dips, this one fits the job. And if rates fall, the market often re-rates utilities quickly, giving you a bonus, too.

The post 1 Incredible Canadian Dividend Stock to Buy for Decades appeared first on The Motley Fool Canada.

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More reading

• Want Set-and-Forget Income? This 4% Yield TSX Stock Could Deliver in 2026
• The Best Dividend Stocks for Canadians in 2026
• 10 Years From Now You’ll Be Thrilled You Bought These Outstanding TSX Dividend Stocks
• Here’s the Average TFSA Balance at Age 50 in Canada
• Passive Income: Is Fortis Stock Still a Buy for its Dividend?

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.