It pays to remain invested, and nothing proves it higher than resilient dividend progress shares. A ten-year tenure is a candy spot for compounding returns. The headwinds subside in two to a few years. A turnaround materializes in six to seven years. Even a serious disaster just like the 2008 World Recession didn’t final greater than 5 years. As Warren Buffett says, “When you aren’t keen to personal a inventory for 10 years, don’t even take into consideration proudly owning it for 10 minutes.”

10 years from now, you’ll be glad you obtain three magnificent dividend shares 

There’s something particular about 10 years, and that one thing particular is the ability of compounding. With the under magnificent shares, you possibly can witness the true energy of compounding 10 years from now.

Canadian Pure Sources

Canadian Pure Sources (TSX:CNQ) is a purchase for its double-digit dividend progress. Holding the world’s second-largest low-maintenance oil sands reserves, CNQ has a value benefit that enables it to develop dividends. It has a 25-year historical past of rising dividends within the vary of two%–56%. It has integrated the dividend quantity in its breakeven worth of mid-$40 per barrel, which assures you that the corporate can maintain its dividends. Canadian Pure Sources additionally provides particular dividends when the oil worth is excessive.

When you purchased 1,000 shares of CNQ in January 2016 for $14,450, you’d have gotten $470 in annual dividends in 2016, which might have grown to $2,350 in 2025. 2016 witnessed a serious oil disaster as US shale exploration completely lowered the oil worth from US$100/barrel to US$60/barrel. Then the pandemic created an oversupply problem that lowered the oil worth to US$35/barrel for a short interval. After the 2 main crises, the oil worth rallied to US$125 in 2022 when the lockdown ended and the Russia-Ukraine battle created a provide shock.

Within the final 10 years, a $14,450 funding in CNQ paid a cumulative dividend of $12,900 and elevated the worth of these 1,000 shares to $48,000. That is earlier than compounding. Had you reinvested the dividends, your 2025 annual payout can be $3,221, and your 10-year cumulative dividend payout can be round $15,920.

Computerized compounding with a dividend reinvestment plan

In CNQ, it’s a must to purchase shares at market worth and pay a brokerage to compound the returns. Nonetheless, some TSX shares provide a dividend reinvestment plan (DRIP), which saves you brokerage charges and automates compounding.

Manulife Monetary (TSX:MFC) and Telus Company (TSX:T) have been rising their dividends at a 10-year common annual price of 10% and seven%, respectively. Telus has slowed its dividend progress as modifications within the regulatory panorama have affected its money flows.

The administration expects to develop dividends by 3–8% between 2026 and 2028 because it deleverages its stability sheet to extend money stream. Telus has lowered its capital spending on community infrastructure and is specializing in increasing its buyer base on companion networks. As soon as it brings down leverage and harnesses the 5G potential, it could speed up its dividend progress. 

In the meantime, Manulife is seeing sturdy demand for its well being, wealth, and life insurance coverage merchandise throughout the US, China, and Asia. The corporate is rising organically and thru acquisitions. It has acquired U.S.-based Comvest Credit score Companions and PT Schroder Funding Administration Indonesia. It has additionally partnered with Mahindra & Mahindra to enter the Indian insurance coverage market and strengthen its presence on the earth’s largest economies.

The above enlargement plans will assist Manulife safe larger premiums, giving it room to proceed rising dividends.

Investor takeaway

Investing within the above three dividend shares and holding them for 10 years can provide the twin advantage of dividend progress and compounding by means of a DRIP.