The distinction between an excellent retirement portfolio and an excellent one usually 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 firms that persistently generate money and share it with buyers.
In case you are trying to construct a passive revenue portfolio you could look again on with pleasure in 2035, two TSX dividend shares stand out at the moment. One provides a high-yield turnaround alternative, whereas the opposite guarantees regular, regulated progress.
Right here is why you may be thrilled to procure TELUS (TSX:T) inventory and Emera Inc. (TSX:EMA) at the moment.
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 the moment presents precisely that chance. The inventory has been below strain, and administration’s decisive capital administration coverage replace in December 2025 has created an interesting entry level for contrarian buyers.
TELUS lately introduced a three-year pause in its dividend progress via 2028. Whereas dividend progress buyers normally dislike pauses, this transfer is a strategic pivot designed to appease Bay Road and fortify the corporate’s steadiness sheet. Administration has shifted its focus towards a ten% free money circulate progress goal, aiming to pay down debt and strengthen the corporate’s monetary footing.
The TELUS dividend alternative seems compelling. Buyers’ 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 a large 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 provides a special proposition. Its 9.4% dividend seems safe and can doubtless stay intact over the subsequent three years. If the corporate executes its plan to restore its steadiness sheet, there’s an opportunity administration may revert to its conventional semi-annual dividend raises.
Buyers shopping for TELUS inventory at the moment lock in a large yield and place themselves for potential capital appreciation that would greater than double their capital over the subsequent 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 circulate 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 funds to Emera’s Florida operations, particularly to harden the grid towards storms and climate occasions. This funding ought to drive 8% to 9% annual progress within the Florida price base, serving to the corporate obtain a consolidated price base progress goal of seven–8% yearly via 2030.
Emera inventory ought to reward affected person buyers with regular returns over the subsequent decade. Its quarterly dividend at the moment yields a decent 4.3%. With an 18-year dividend progress streak already below its belt, the corporate is focusing on additional annual raises of 1–2% via 2030. Whereas this dividend progress price is modest, it’s supported by a sustainable 78% payout ratio.
While you mix the dividend yield with the potential for 4% to five% annual capital positive factors, pushed by the corporate’s strong capital program, buyers may see whole returns exceeding 8% yearly over the subsequent 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 supply distinct paths to wealth creation. TELUS is the high-yield worth play, providing a 9% payout with vital 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 actually magnificent.
