Dividend stocks are some of the best investments you can buy, offering the perfect mix of passive income and long-term stability. Unlike many other investments, high-quality dividend stocks can generate reliable cash flow while continuing to grow your capital over time, the ideal combination for long-term investors.

The key to building passive income for life is to find the highest-quality companies with dependable operations, strong balance sheets, and a history of returning cash to shareholders. Even better, if you can buy these stocks undervalued, you'll set yourself up for years of steady and growing returns.

So, if you're looking for the best dividend stocks to buy now, here are three top-notch Canadian companies to consider today.

A top royalty stock offering significant cash flow

Although many stocks in the energy sector offer dividends, Freehold Royalties (TSX:FRU) is one of the very best dividend stocks to buy now if you're seeking steady, high-yield passive income.

Freehold operates in the oil and gas sector, earning royalties from production on its vast land holdings without the need to operate expensive drilling or extraction projects.

This unique business model allows Freehold to generate significant cash flow, even during periods of economic uncertainty, since it doesn't carry the same capital expenditure risks as traditional energy companies.

Furthermore, since Freehold keeps its payout ratio low to ensure its dividend is sustainable, it also uses some of the excess cash flow it doesn't pay out to acquire more land and expand its operations.

Therefore, it's not just a stock that offers attractive passive income; with its current yield of 8.5%, it also offers significant long-term growth potential both to the dividend and share price.

Therefore, given its unique business model, sustainable dividend, and consistently growing portfolio of land, Freehold is certainly one of the best dividend stocks to buy now that can generate passive income for life.

A rock-solid dividend stock to buy and hold for years

When it comes to dividend reliability, few companies can match the track record of Fortis (TSX:FTS).

As one of the largest utility companies in North America, Fortis operates a diversified portfolio of regulated utility assets, which provide essential services and generate stable revenue.

This stable and predictable revenue allows Fortis to pay an impressive dividend. In addition, because it keeps the dividend sustainable, Fortis constantly has plenty of cash left over to invest in expanding its operations and generating future growth.

So, it's no surprise that Fortis is renowned for its impressive dividend-growth streak, increasing its payout for more than 50 consecutive years now. Furthermore, management plans to continue increasing the dividend by 4% to 6% annually through 2028.

Currently, Fortis offers a dividend yield of roughly 4.1%, and its stock is trading at a forward price-to-earnings (P/E) ratio of 18.7 times, slightly lower than its five-year average of 19.0 times.

Therefore, while you can buy one of the best dividend stocks in Canada undervalued and lock in a yield above 4%, it's certainly one of the smartest dividend stocks to buy now.

A reliable REIT with a generous yield

Real estate is another sector where you can find plenty of high-quality dividend stocks to buy and hold for years. In fact, one of the best stocks that offers both consistent dividend growth and a super compelling yield is CT REIT (TSX:CRT.UN), a unique retail REIT.

CT REIT is unique because its majority owner is Canadian Tire, which is also its primary tenant, providing the REIT with a steady stream of rental income. In fact, with over 90% of its properties leased to Canadian Tire on long-term agreements, the REIT boasts a high level of revenue stability.

Plus, in addition to the stable cash flows CT REIT generates from Canadian Tire, it also has an impressive pipeline of growth projects that should allow it to continue increasing its distribution annually going forward.

Currently, CT REIT offers a dividend yield of 6.5% and has increased its distribution for 10 straight years — every year since it went public.

So, if you're looking for reliable stocks that you can buy now and hold for years, CT REIT is certainly one of the best dividend stocks to buy now.