The distinction between a great retirement portfolio and a terrific one typically comes right down to a single variable: time. Within the quick time period, the inventory market is a voting machine, swayed by sentiment and headlines. However over the long run, it acts as a weighing balance, rewarding corporations that constantly generate money and share it with buyers.
If you’re trying to construct a passive revenue portfolio that you could look again on with satisfaction in 2035, two TSX dividend shares stand out at present. One presents a high-yield turnaround alternative, whereas the opposite guarantees regular, regulated progress.
Right here is why you is likely to be thrilled you acquire TELUS (TSX:T) inventory and Emera Inc. (TSX:EMA) at present.
TELUS inventory: The contrarian high-yield dividend play
It’s uncommon to discover a blue-chip Canadian telecom providing a sustainable 9.4% dividend yield, however TELUS at present presents precisely that chance. The inventory has been beneath strain, and administration’s decisive capital administration coverage replace in December 2025 has created an enchanting entry level for contrarian buyers.
TELUS just lately introduced a three-year pause in its dividend progress by 2028. Whereas dividend progress buyers often dislike pauses, this transfer is a strategic pivot designed to appease Bay Avenue and fortify the corporate’s steadiness sheet. Administration has shifted its focus towards a ten% free money movement progress goal, aiming to pay down debt and strengthen the corporate’s monetary footing.
The TELUS dividend alternative appears compelling. Traders’ considerations have elevated the yield to historic highs, however this window could also be closing as administration speaks analysts’ language. Contemplate the case of BCE Inc., which minimize its dividend by an enormous 56% earlier in Could 2025. As soon as the market realized the brand new payout was sustainable, BCE shares rebounded, and the yield has compressed from almost 6% down to five.6%.
TELUS presents a special proposition. Its 9.4% dividend seems safe and can possible stay intact over the following three years. If the corporate executes its plan to restore its steadiness sheet, there’s an opportunity administration might revert to its conventional semi-annual dividend raises.
Traders shopping for TELUS inventory at present lock in an enormous yield and place themselves for potential capital appreciation that would greater than double their capital over the following decade.
Emera inventory: Harvesting Florida-fueled utility cashflow
Emera Inc. inventory is a standout candidate for buyers searching for reliability. This $20 billion diversified utility generates roughly 95% of its money movement from regulated sources, making it a predictable passive revenue machine for the lengthy haul, with Florida operations doing the heavy lifting.
The core of Emera’s progress thesis lies south of the border. Within the first 9 months of 2025, the corporate generated almost 83% of its adjusted web revenue from its Florida electrical utility phase.
To assist this key market, Emera unveiled a $20 billion capital expenditure plan in November 2025. Administration dedicates a major 80% of this price range to Emera’s Florida operations, particularly to harden the grid in opposition to storms and climate occasions. This funding ought to drive 8% to 9% annual progress within the Florida charge base, serving to the corporate obtain a consolidated charge base progress goal of seven–8% yearly by 2030.
Emera inventory ought to reward affected person buyers with regular returns over the following decade. Its quarterly dividend at present yields a decent 4.3%. With an 18-year dividend progress streak already beneath its belt, the corporate is focusing on additional annual raises of 1–2% by 2030. Whereas this dividend progress charge is modest, it’s supported by a sustainable 78% payout ratio.
Whenever you mix the dividend yield with the potential for 4% to five% annual capital features, pushed by the corporate’s sturdy capital program, buyers might see whole returns exceeding 8% yearly over the following decade. Such returns can double one’s funding in 9 years, the Rule of 72 predicts.
If rates of interest in North America pattern decrease, Emera’s regular revenue profile turns into an much more enticing bond different, doubtlessly driving the inventory worth increased.
Investor takeaway
Each TELUS inventory and Emera inventory provide distinct paths to wealth creation. TELUS is the high-yield worth play, providing a 9% payout with important upside if administration efficiently executes its deleveraging technique. Emera is the regular compounder, providing regulated stability and visual progress from its Florida operations.
Shopping for these excellent shares for 2026 could possibly be the choice that makes your 2035 portfolio really magnificent.
