While there are many easy ways to start building passive income, I think dividend investing is one of the most satisfying. That’s because it allows you to earn regular cash payments simply by owning shares of established businesses. I find that even more appealing because even small but consistent dividend payments can add up over time, especially when you reinvest them to buy more shares.
But picking the dividend stocks is where I’d be a little selective. I wouldn’t rush to buy whichever Canadian stocks happen to offer the biggest dividend yields. Instead, I’d prefer to own a business that’s growing its earnings and has enough financial strength to keep rewarding investors over time.
In this article, I’ll share two such Canadian dividend stocks I’d consider for building passive income without sacrificing long-term growth potential.
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Scotiabank stock
If I wanted quarterly passive income backed by a growing business, Bank of Nova Scotia (TSX: BNS), Scotiabank, would be high on my list after another strong stretch of earnings growth. This Toronto-based banking giant offers a wide range of financial services across Canada and international markets, including personal banking, wealth management, and investment banking.
After rallying by 44% over the last year, BNS stock currently trades at $132.27 per share with a market cap of $160.6 billion. Despite this impressive rally, it still offers a 3.4% annualized dividend yield with quarterly payouts.
Scotiabank’s improving business performance has been another reason I’d consider buying this stock now. In the third quarter of its fiscal year 2026 (ended in July), the bank’s total revenue rose 11% year-over-year (YoY) to $10.5 billion with the help of higher net interest income and non-interest income. More importantly, its quarterly net income climbed nearly 17% YoY to $3 billion, while adjusted earnings per share jumped 21% to $2.28.
On top of these strong results, Scotiabank continues to prioritize shareholder returns. In the first nine months of fiscal 2026, it returned $6.3 billion to investors through dividends and share buybacks.
With its improving profitability, diversified operations, and focus on rewarding shareholders, I believe Scotiabank remains an attractive Canadian dividend stock for investors seeking reliable passive income over the long term.
Great-West Lifeco stock
Another Canadian financial stock worth considering for long-term passive income is Great-West Lifeco (TSX: GWO). Headquartered in Winnipeg, this financial services company operates across Canada, the United States, and Europe, offering insurance, retirement, and wealth management solutions.
GWO stock has also been on an impressive run, gaining 56% over the last year to currently trade at $92.71 per share. With a market cap of $82.6 billion, it offers a 2.9% annualized dividend yield and distributes its payouts quarterly.
While the company is yet to release its third-quarter results, its net earnings in the second quarter climbed 16% YoY to $1 billion, while its base earnings rose nearly 11% due mainly to continued strength in its retirement and wealth management businesses.
In June, its Empower subsidiary announced a US$340 million deal to acquire Milliman’s retirement plan and benefits administration business. This acquisition is expected to strengthen Empower’s retirement platform by adding nearly US$130 billion in client assets and 1.5 million participants at closing.
Given its strong earnings momentum, solid capital position, and expanding retirement operations, Great-West could be another excellent dividend stock to buy now for building a growing passive income stream over time.
