When I buy a dividend stock, I do not want to spend every quarter wondering whether the payout is still safe. I would rather own a business that keeps producing cash, keeps investing in itself, and gives management plenty of room to reward shareholders along the way. Such stocks may not always offer the biggest yield on the market, but they could be much easier to hold through good times and bad.
In this article, I’ll share two Canadian dividend stocks that look well-suited for investors who want passive income they could keep for the long haul.
Choice Properties stock
If dependable monthly income is at the top of your wish list, Choice Properties Real Estate Investment Trust (TSX:CHP.UN) could be a great stock to buy now.
If you don’t know it already, it owns and manages retail, industrial, mixed-use, and residential properties across Canada. Its portfolio includes more than 700 income-producing properties with roughly 60 million square feet of gross leasable area. Even better, many of those retail properties are anchored by necessity-based tenants, helping the real estate investment trust (REIT) generate stable rental income across different market conditions.
Following a 12% gain over the last year, Choice stock currently trades at $15.96 per unit and has a market cap of $5.2 billion. At this market price, it offers a 4.9% annualized dividend yield, paid monthly. That’s an appealing combination for investors who want regular income without sacrificing the potential for steady capital appreciation.
In the latest quarter ended in June, the REIT’s same-asset net operating income on a cash basis increased 2.8% year-over-year (YoY) to $255.4 million, while total net operating income also rose 2.8% to $275.9 million. Those gains reflect healthy performance across its property portfolio rather than one-time factors.
Its cash flow also continued moving in the right direction, with diluted funds from operations edging 0.8% higher to $0.267 per unit. Strong same-asset growth supported those results, although higher interest expenses offset part of the improvement.
Meanwhile, Choice Properties REIT’s occupancy remains exceptionally strong at 97.7%, as its long-term renewal leasing spreads reached 19% last quarter. That suggests tenants continue renewing leases even at higher rental rates, supporting future rental income growth.
More than just a high-yield REIT, Choice Properties combines reliable monthly income, healthy occupancy, and a visible growth pipeline to offer investors an appealing long-term income opportunity.
AltaGas stock
Investors looking for a little higher growth potential without giving up dividend income may find AltaGas (TSX:ALA) even more interesting.
It has a diversified North American energy infrastructure business with Midstream assets that connect producers to domestic and export markets, along with regulated natural gas utilities across four U.S. jurisdictions. That mix gives it exposure to both dependable, regulated earnings and growing export opportunities.
ALA stock currently trades at $55.78 per share with a market cap of $17.4 billion. Although its 2.4% annualized dividend yield is lower than that of Choice Properties, AltaGas shares have surged 36% over the past year as investors responded to its improving business performance.
Last week, AltaGas posted record second-quarter results, with normalized EBITDA (earnings before interest, taxes, depreciation, and amortization) jumping 14.3% YoY to $391 million. This growth was driven by stronger global export volumes and margins, contributions from Pipestone II, utility modernization investments, and improved retail margins in its Utilities segment.
Its cash flow growth remained even stronger as the company’s normalized funds from operations surged by 24.1% YoY to $283 million. At the same time, the company lifted its 2026 capital budget to $1.8 billion to support construction of the Ridley Island Energy Export Facility and new growth projects in Northeast British Columbia.
While AltaGas may not offer the highest dividend yield on the Toronto Stock Exchange, its strong combination of rising earnings, growing cash flow, and expanding infrastructure assets gives investors plenty of reasons to believe its dividend could increase over time.
