Great-West Lifeco highlights long-term dividend growth potential

Dividend investing strategies emphasize that current market yields do not reflect the long-term returns earned by early investors. As companies consistently grow their payouts, the yield relative to the original purchase price can increase significantly over time, a concept often compared to rising rental income on a property.

Great-West Lifeco (GWO) serves as a practical example of this principle. The Winnipeg-based financial services firm, which operates brands such as Canada Life, Empower, and Irish Life, has seen its shares rise approximately 182% over the last decade. While its current market yield stands at 3%, the company has provided both reliable dividends and strong capital appreciation.

The company reported an 11% year-over-year increase in base earnings to $1.3 billion for the second quarter of 2026. Growth was notably driven by its United States segment, which saw a 34% rise in base earnings due to higher fee income, increased assets, and strong market performance.