2 Dividend Stocks Worth Holding for the Next 7 Years

By Amy Legate-Wolfe at The Motley Fool Canada

Seven years can deliver 28 quarterly dividend cheques from a single stock. Reinvest each one, add a few dividend increases, and a perfectly ordinary income investment can become considerably less ordinary by cheque number 28. But, where should investors look first?

Considerations

First, it’s important to consider that time alone won’t rescue a weak business. Investors need earnings or cash flow that comfortably covers the dividend, a balance sheet capable of funding growth, and a catalyst that should remain relevant after today’s excitement wanders elsewhere.

Yield tells only the opening chapter. A modest dividend that grows can eventually produce more income than an enormous payment going nowhere. Reinvestment then allows every new share to join the workforce, which is why quality matters so much when choosing Canadian dividend stocks.

The next seven years should bring enormous demand for reliable electricity, insurance, retirement products, and wealth management. Those trends rarely share a sentence, yet they create a nicely diversified job description for two Canadian companies.

CPX

Capital Power (TSX:CPX) owns natural-gas, wind, and solar power facilities across Canada and the United States. These assets sell electricity into wholesale markets and through contracts, providing the dependable power required when the internet needs another warehouse full of computers.

That opportunity became considerably more concrete in July. Capital Power signed an agreement lasting more than 10 years to provide 250 megawatts (MW) of capacity and energy for Meta’s Alberta data centre. Service is expected to begin during the second half of 2028, placing the catalyst directly inside this seven-year holding period.

Capital Power expects between $890 million and $1 billion in 2026 adjusted funds from operations (AFFO). Its annualized $2.76 dividend would consume roughly 45% of the midpoint, leaving cash for debt reduction and expansion.

At a recent price around $73, the shares yield about 3.8% and trade near 12 times projected AFFO per share. Capital Power has also produced 12 consecutive years of dividend growth and targets another 2% increase in 2026, subject to board approval. Second-quarter results on July 29 will provide the next progress report.

MFC

Manulife Financial (TSX:MFC) adds a completely different growth engine. It sells insurance and retirement products while managing investments for individuals and institutions across Canada, the United States, and Asia.

Asia remains a particularly attractive opportunity. First-quarter core earnings from the region increased 22% as sales and the value of new business grew. Rising incomes and relatively low insurance penetration could keep that business expanding long after the current quarter becomes ancient history.

Manulife stock also announced a five-year Microsoft agreement on July 22. The company will expand Copilot access to more than 30,000 employees and deploy AI tools across its global operations, potentially improving underwriting, customer service, and efficiency.

The $0.49 quarterly dividend consumed approximately 46% of first-quarter core earnings per share. At $60.67, Manulife stock yields 3% and trades near 14 times 2025 core earnings. The dividend increased 10.2% this year, while second-quarter results arrive August 5.

Bottom line

Capital Power carries substantial debt and faces acquisition, commodity-price, regulatory, and construction risks. Manulife stock remains exposed to credit losses, market movements, weaker Asian economies, and investment outflows. Neither dividend is guaranteed, so investors should avoid making two stocks perform the work of an entire portfolio. Even so, this is what $7,000 could bring in from dividends alone at writing.

Investors buying stocks in Canada could start gradually and reinvest the dividends through future volatility. If electricity demand and Asian wealth keep climbing, those 28 payments may represent only the opening act of a much longer income story.

The post 2 Dividend Stocks Worth Holding for the Next 7 Years appeared first on The Motley Fool Canada.

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

2026