2 TSX Dividend Stocks to Buy in June

Here are two top Canadian dividend stocks long-term investors may want to consider for their income generation potential and growth.

| More on:
Aerial view of a wind farm

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

For investors looking to create a passive income portfolio they’d be proud of, finding the top dividend stocks to buy is an important task. The thing is, for investors looking on even a relatively small global exchange like the TSX, there are hundreds of options to choose from. Picking the best companies with the most stable cash flows (and dividends that are likely to increase over time) is important.

In my view, the following two companies could be the best dividend stocks to choose from in Canada. Here’s why I think these companies are worth considering at current levels.

Fortis

Fortis (TSX:FTS) owns and operates 10 utility transmission and distribution assets in Canada and the United States. The company serves more than 3.4 million customers in the region and has smaller shares in electricity generation and several Caribbean utilities. 

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALL7 Apr 20204 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202120212022202220232023202420242025202540506070www.fool.ca

Notably, the company offers essential services to its customers, for which it gets compensated with recurring revenue streams. Fortis’ customer base simply can’t not pay their bills. Having your A/C unit shut off during a heat wave or being unable to turn the lights (and WiFi) on can be a kiss of death for so many households. That’s largely why utility companies are seen among the most steady revenue streams out there – it’s a bill that most often gets paid first.

The company’s stable cash flows have translated into strong dividend increases over time. Fortis’ 50-year track record of hiking dividends has led to a quarterly distribution of $0.59, good for a yield of 4.4% at the company’s stock price at the time of writing. That’s a reasonable yield relative to what investors would get in the bond market. And those choosing to invest in Fortis stock also gain the benefit of the company’s capital appreciation profile, which has been solid long term.

Fortis’ recent results point to the kind of fundamental stability so many dividend investors are after (or ought to be). The company’s net income growth of 9.2% year-over-year is solid, and indicates the kind of pricing power and stability Fortis provides. Those thinking long-term can’t go wrong owning this name, in my view.

Brookfield Infrastructure Partners

Brookfield Infrastructure Partners (TSX:BIP.UN) operates and owns long-life and quality assets that generate stable cash flow. The company focuses on acquiring infrastructure assets with low maintenance capital costs and high barriers to entry. It has four different segments: transport, utilities, data and midstream. 

Created with Highcharts 11.4.3Brookfield Infrastructure Partners PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The company generates 90% of its cash flow from long-term contracts or regulated frameworks with an average remaining term of 10 years. In addition, 85% of its earnings have been indexed or protected from inflation. This is a feature of the company’s business model, which helps Brookfield Infrastructure Partners insulate its earnings from future uncertainty.

In the first quarter of 2022, Brookfield Infrastructure Partners reported net income of US$170 million in comparison to last year’s US$23 million. In addition, the company reported funds from operations of US$615 million, an 11% increase year-over-year. The increase reflects its 7% organic growth and contributions of approximately US$2 billion of new investments. 

In addition, the market conditions have continued to improve for Brookfield Infrastructure Partners L.P. in 2024, as it has increased its activity levels for M&A. The company has offered a 14.5% annualized total return since its inception in 2008. During that period, the funds from operations grew at a 15% compound annual rate per share. Thus, these growth factors of Brookfield Infrastructure Partners L.P. make it a must-add stock to your portfolio.

For those thinking long term, these two dividend stocks certainly make sense as core portfolio holdings. At current levels, I think they’re buys.

Should you invest $1,000 in Calian Group Ltd. right now?

Before you buy stock in Calian Group Ltd., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and Calian Group Ltd. wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Brookfield Infrastructure Partners and Fortis. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

1 Practically Perfect Canadian Stock Down 24% to Buy Now and Hold for Life!

CNR stock is a top Canadian stock for investors, especially with shares down on the TSX today.

Read more »

Canada national flag waving in wind on clear day
Dividend Stocks

The Best Canadian Stocks to Buy Right Away With $30,000

If you have $30,000 you're willing to invest, these are some of the first Canadian stocks to consider on your…

Read more »

rail train
Dividend Stocks

What to Know About Canadian Pacific Railway Stock for 2025

CP stock has now gone through a major merger, so what do investors have to look forward to?

Read more »

ways to boost income
Dividend Stocks

Top Canadian Value Stocks I’d Buy for Dividend Growth and Appreciation

If you are looking for income and capital appreciation, here are three Canadian value stocks for a great total return…

Read more »

coins jump into piggy bank
Dividend Stocks

The Smartest Canadian Stock to Buy With $2,000 Right Now

The company’s powerful combination of growth, income, and value, positions it well to deliver solid returns, making it a smart…

Read more »

Transparent umbrella under heavy rain against water drops splash background. Rainy weather concept.
Dividend Stocks

This 10.6 Percent Dividend Stock Pays Cash Every Single Month

Are you looking to invest for a rainy day? This 10.6% dividend stock pays cash every month, irrespective of the…

Read more »

A worker gives a business presentation.
Dividend Stocks

Market Dip: Opportunity or Risk This April?

This market dip might have investors worried, but should they be excited instead?

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

Why I’d Add This Top TSX Dividend Stock to My TFSA During the Current Dip

The market is full of volatility right now. Fortunately, this top TSX dividend trades at a discount and pays a…

Read more »