In 10 years, you’ll be glad you bought these excellent TSX Dividend stocks

The difference between a good and a good retirement portfolio often comes down to a single variable: time. In the short term, the stock market is a voting machine, influenced by sentiment and headlines. But in the long run, it acts as a weighing machine, rewarding companies that consistently generate cash and share it with investors.

If you want to build a passive income portfolio you can look back on with pride in 2035, two TSX dividend stocks stand out today. One offers opportunities for a reversal of high interest rates, while the other promises steady, regulated growth.

Here’s why you might be glad you bought TELUS (TSX:T) stock and Emera Inc. (TSX:EMA) today.

TELUS Stocks: The Contrarian High Yield Dividend Play

It’s rare to find a Canadian telecom giant with a good reputation that offers a sustainable dividend yield of 9.4%, but TELUS is currently offering just that opportunity. The stock has been under pressure and management’s decisive update to its capital management policy in December 2025 has created a fascinating entry point for contrarian investors.

TELUS recently announced a three-year pause in dividend growth through 2028. While dividend growth investors typically hate pauses, the move is a strategic pivot to calm Bay Street and strengthen the company’s balance sheet. Management has shifted focus to a 10% free cash flow growth target, with the aim of paying down debt and strengthening the company’s financial position.

The dividend opportunities for TELUS look attractive. Investor concerns have pushed yields to historic highs, but this window could be closing as management speaks the language of analysts. Take the case of BCE Inc.which previously cut its dividend by as much as 56% in May 2025. Once the market realized the new payout was sustainable, BCE stock rallied and the yield has fallen from nearly 6% to 5.6%.

TELUS offers a different proposal. The 9.4% dividend seems safe and will likely remain intact for the next three years. If the company follows through on its plan to repair its balance sheet, there is a chance that management will return to traditional semi-annual dividend increases.

Investors who buy TELUS shares today will secure a huge return and position themselves for potential capital growth that could more than double their capital over the next decade.

Emera Stock: Harvesting Florida’s Fueled Utilities Cash Flow

The share of Emera Inc. is a standout candidate for investors looking for reliability. The $20 billion diversified utility generates about 95% of its cash flow from regulated sources, making it a predictable passive income machine over the long term, with its Florida operations doing the heavy lifting.

The core of Emera’s growth thesis lies south of the border. Through the first nine months of 2025, the company generated nearly 83% of its adjusted net income from its Florida electric utility segment.

To support this important market, Emera unveiled a $20 billion investment plan in November 2025. Management devotes a significant 80% of this budget to Emera’s operations in Florida, primarily to protect the electrical grid from storms and weather events. This investment should deliver 8% to 9% annual interest base growth in Florida, allowing the company to achieve a consolidated interest base growth target of 7 to 8% per year through 2030.

Emera stock should reward patient investors with stable returns over the next decade. The quarterly dividend currently yields a respectable 4.3%. With 18 years of dividend growth already under its belt, the company is targeting further annual increases of 1-2% through 2030. While this dividend growth rate is modest, it is supported by a sustainable payout ratio of 78%.

When you combine the dividend yield with the potential for annual capital gains of 4% to 5%, driven by the company’s robust capital program, investors could see total returns of more than 8% per year over the next decade. Such returns can double one’s investment in nine years, the Rule of 72 predicts.

If interest rates fall in North America, Emera’s stable income profile will become an even more attractive alternative to bonds, potentially boosting its share price.

Takeaway for investors

Both TELUS stock and Emera stock offer different paths to wealth creation. TELUS is a high-yield value strategy, offering a 9% payout with significant upside if management successfully executes its deleveraging strategy. Emera is the stable compounder offering regulated stability and visible growth from its Florida operations.

Buying these outstanding stocks for 2026 could be the decision that makes your 2035 portfolio truly stellar.