10 Years From Now I Think You’ll Be Glad You Bought These Dividend Stocks
Alex Smith
2 weeks ago
In a decade’s time, a lot can change. However, for investors who are looking for world-class dividend stocks that have historically provided excellent returns, the great news is that there are plenty of fantastic options to choose from.
I’m going to highlight three of my top picks right now among various blue-chip TSX-traded dividend stocks I think can outperform in a variety of market environments. These are companies I think should be able to weather any meaningful drawdowns over the next decade, and end up providing above-market total returns over that period.
So, without further ado, let’s dive in!
Restaurant Brands
As far as top defensive dividend stocks are concerned, Restaurant Brands (TSX:QSR) has to be a top pick for investors looking to earn reasonable sleep-at-night returns over the next decade.
As the leading fast food giant on the TSX, Restaurant Brands’ portfolio of banner companies (including Tim Horton’s and Burger King) continues to provide steady dividend income (with a current yield of around 3.7%) as well as strong underlying performance from its core businesses.
As more trade-down continues to permeate the restaurant sector, I expect Restaurant Brands to continue to take market share from industry leaders. And with one of the best balance sheets in the space, if valuations get too depressed, I wouldn’t be surprised to see more acquisitions come down the line.
With these catalysts in mind, QSR stock remains a top pick of mine for those seeking reasonable total returns over the next decade.
Bank of Nova Scotia
One of the top Canadian banks with the best dividend yield of the group (in my opinion), Bank of Nova Scotia (TSX:BNS) stands out as a top option for investors seeking dividend yields above 4%.
With a dividend yield right around 4.3%, I think that’s reasonably impressive, given the stock move seen above. Scotiabank, and most other top-tier Canadian bank stocks have been on an absolute tear of late, driven higher by rising net interest margins as the yield curve continues to steepen in Canada and abroad.
With these strong underlying growth catalysts supporting the company’s lending model, and a still-strong consumer in Canada and the U.S., this is a leading bank stock investors are rightly gravitating toward right now. For long-term investors looking to benefit from Canada’s robust regulatory environment around banks, Scotiabank remains a top pick of mine from a dividend angle right now.
Dream Industrial REIT
The last pick on this list is certainly not one to be overlooked. Dream Industrial REIT (TSX:DIR.UN) is one of my top picks right now for investors looking to create passive income streams via real estate, with plenty of capital appreciation upside.
Dream Industrial has one of the best portfolios in the market of industrial real estate. That’s the warehouses and distribution centers companies need to offer the same-day delivery we’ve all come to love.
In other words, Dream Industrial powers the backbone of e-commerce, with long-duration leases in key markets throughout Canada that provide steady cash flow the company continues to pay to investors. It’s a REIT, so it has to pay out around 90% or more of its net income each and every month.
For investors looking to capture an impressive 5.4% dividend yield and do so while sleeping well at night, this is one of my top picks in the space right now.
The post 10 Years From Now I Think You’ll Be Glad You Bought These Dividend Stocks appeared first on The Motley Fool Canada.
Should you invest $1,000 in Bank Of Nova Scotia right now?
Before you buy stock in Bank Of Nova Scotia, consider this:
The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026⦠and Bank Of Nova Scotia wasnât 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 âeBay of Latin Americaâ at the time of our recommendation, youâd have $21,827.88!*
Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!
Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }* Returns as of January 15th, 2026
More reading
- TFSA: 3 Canadian Stocks to Buy and Hold for the Long Run
- 3 Canadian Dividend Knights to Add to Your 2026 TFSA
- Is Bank of Nova Scotia Stock a Buy for Its Dividend Yield?
- The Perfect TFSA Stocks for Generous Monthly Payouts
- The Smartest Dividend Stocks to Buy With $1,000 Right Now
Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia, Dream Industrial Real Estate Investment Trust, and Restaurant Brands International. The Motley Fool has a disclosure policy.
Related Articles
Top Canadian Stocks to Buy Right Now With $5,000
These top Canadian stocks are backed by strong fundamentals and have solid growt...
3 Major Red Flags the CRA Is Watching for Every TFSA Holder
Canadian TFSA holders need to avoid these three mistakes that could attract a he...
TSX Today: What to Watch for in Stocks on Wednesday, February 11
Falling bond yields, strong earnings, and a tech rebound pushed the TSX to a new...
Missed Out on Nvidia? My Best AI Stocks to Buy and Hold
Celestica (TSX:CLS) and another stock that could be a better buy as AI valuation...