2 Canadian Dividend Stocks That Could Deliver Reliable Returns for Years

Some of the best investment decisions may not feel exciting at the time. Canadian dividend stocks often fall into that category, yet that is exactly why they can deliver reliable returns for years. These companies tend to operate in mature industries, generate steady cash flow, and reward shareholders consistently, even when markets wobble. While growth stocks grab attention during boom times, dividend payers quietly do the heavy lifting through cycles by paying you to stay invested. Over long periods, that combination of income and patience can add up to surprisingly strong total returns.

POW

Power Corporation of Canada (TSX:POW) is one of those dividend stocks that rarely feels urgent but often proves useful. It is a holding company with stakes in financial services, insurance, asset management, and alternative investments through names like Great-West Lifeco, IGM Financial, and a range of private holdings. That structure gives it diversification across business lines and geographies, which helps smooth earnings over time. Instead of relying on a single source of profit, Power benefits from multiple income streams that tend to behave differently across economic cycles.

Recent earnings showed that Power continues to execute steadily in a tougher environment. While higher interest rates and market volatility pressured parts of the wealth management business, insurance operations remained resilient and asset management held up better than many expected. Earnings didn’t surge, but stayed consistent, which matters more for a dividend investor than flashy growth. Management has focused on cost discipline and balance sheet strength, which supports predictable cash flow generation across its portfolio companies.

Valuation is part of what makes Power interesting right now. The dividend stock trades at a discount to the value of its underlying holdings, which has been a recurring feature over the years. That gap can narrow when sentiment improves, offering capital upside alongside income. The dividend yield sits comfortably above the broader market, and the payout ratio remains reasonable given the diversified earnings base. For investors looking for reliability rather than speed, Power offers a blend of income, stability, and the potential for gradual value recognition over time.

EIF

Exchange Income (TSX:EIF) operates in a very different corner of the market, but it appeals to the same long-term mindset. EIF owns a collection of aviation and aerospace businesses along with manufacturing and industrial services operations. On the surface, it looks complex, but the core idea is simple. It buys niche, cash-generating businesses with long-term contracts and predictable demand, then holds them for the long haul. That model has allowed EIF to grow steadily while paying a monthly dividend.

Recent earnings highlighted the strength of that approach. Revenue and adjusted earnings continued to trend higher, supported by strong demand for aviation services and stable performance in the manufacturing segment. Importantly, much of EIF’s revenue comes from government, defence, and essential service contracts, which reduces sensitivity to economic slowdowns. While aviation sounds cyclical, many of EIF’s operations focus on medevac, surveillance, and regional connectivity, areas where demand does not disappear in a downturn.

From a valuation perspective, EIF trades at a premium to some traditional dividend stocks, but that premium reflects its growth record. The dividend stock has a long history of increasing its dividend while also reinvesting in acquisitions that add to cash flow. The monthly dividend appeals to income investors, but the real attraction is the company’s ability to grow that payout over time. Management has consistently emphasized conservative leverage and disciplined deal-making, which helps protect the dividend even when markets tighten.

Bottom line

Dividend investing is rarely about finding the highest yield or the most exciting story. Instead it’s about finding businesses that can keep doing their job year after year, through good markets and bad. Power offers diversification and stability rooted in financial services, while Exchange Income delivers dependable cash flow through essential operations and disciplined acquisitions. Right now, here’s what $7,000 could bring in from both.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENTPOW$73.1195$2.45$232.75Quarterly$6,945.45EIF$83.7483$2.76$229.08Monthly$6,940.42

Together, these show why Canadian dividend stocks can remain a reliable foundation for investors who value consistency, patience, and long-term returns over short-term excitement.

The post 2 Canadian Dividend Stocks That Could Deliver Reliable Returns for Years appeared first on The Motley Fool Canada.

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More reading

• Best Dividend Stocks for Canadian Investors to Buy Now
• 2 Canadian Dividend Stocks That Are Smart Buys for Capital Growth
• 3.4% Payout Each Month From This Ideal Dividend Stock
• The Ideal Canadian Stock for Dividends and Growth
• Want to Boost Your Income Each Month? 3 Stocks That Can Help

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.