3 Top-Performing TSX Dividend Stocks to Buy Right Now

These three top-performing dividend stocks offer excellent buying opportunities.

| More on:
A worker overlooks an oil refinery plant.

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

After a tough start to this month, the Canadian equity markets have rebounded strongly over the last few days due to easing recession fears. Amid renewed investors’ confidence, the S&P/TSX Composite Index is up 9.9% this year. Meanwhile, the following three stocks, which pay dividends at a healthier rate, have outperformed the broader equity markets. These three stocks offer excellent buying opportunities, given their solid underlying businesses, consistent dividend increases, and healthy growth prospects.

Fortis

Fortis (TSX:FTS) operates 10 regulated utility assets across the United States, Canada, and the Caribbean, meeting the electric and natural gas needs of 3.5 million customers. The company operates a capital-intensive business. Falling interest rates could lower its interest expenses, thus improving its profitability. So, the company has witnessed healthy buying over the last couple of weeks, with its stock price rising 12.5% higher this year.

Created with Highcharts 11.4.3Fortis PriceZoom1M3M6MYTD1Y5Y10YALL6 Apr 20203 Apr 2025Zoom ▾Jul '20Jan '21Jul '21Jan '22Jul '22Jan '23Jul '23Jan '24Jul '24Jan '25202120212022202220232023202420242025202540506070www.fool.ca

Given its regulated asset base, Fortis generates stable cash flows, thus allowing it to raise dividends for 50 consecutive years. It currently pays $0.59/share of quarterly dividends, with its forward yield at 4%. Moreover, the company has adopted a $25 billion five-year capital investment plan, which it plans to invest from 2024 to 2028. These investments would expand its rate base at an annualized rate of 6.3% through 2028, thus supporting its financial growth in the coming years. Amid its growth prospects, the management is confident of raising its dividends by 4-6% annually through 2028.

Considering its consistent dividend growth, regulated asset base, and expansion initiatives, I believe Fortis would be an excellent addition to your portfolio.

Enbridge

Second on my list would be Enbridge (TSX:ENB), which is trading 17.7% higher this year amid solid second-quarter performance and falling interest rates. During the June-ending quarter, the company generated an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) of $4.3 billion, representing an increase of 8% from the previous year’s quarter. Besides, its distributable cash flows increased by 3% to $2.9 billion.

Created with Highcharts 11.4.3Enbridge PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

The midstream energy company has completed the acquisition of two natural gas utility assets in the United States and expects to close the third deal this quarter. Further, it continues strengthening its midstream, renewable, and utility assets through a $24 billion secured capital program. These growth initiatives could boost its financials in the coming years.

Meanwhile, Enbridge has been paying dividends uninterruptedly for 69 years and has raised its dividends for the previous 29 years at an annualized rate above 10%. It currently pays a quarterly dividend of $0.915/share, with its forward yield at 7%. So, Enbridge would be an enticing buy right now.

Canadian Natural Resources

Another top dividend stock that has outperformed the broader equity markets is Canadian Natural Resources (TSX:CNQ). The oil and natural gas producer is up 14.8% this year amid elevated oil prices and solid quarterly performances. In the June-ending quarter, the company’s adjusted net income from operations and adjusted fund flows grew by 50.6% and 31.8%, respectively. Increased production, effective and efficient operations, and higher realized prices drove its financials.

Created with Highcharts 11.4.3Canadian Natural Resources PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

Meanwhile, CNQ has planned to invest around $5.4 billion this year, with $2.5 billion in conventional exploration and production and $2.9 billion in thermal and oil sands mining and upgrading. These investments could continue to drive its production. Further, analysts are projecting oil prices to remain elevated in the near-to-medium term amid growing demand, geopolitical tension, and supply concerns.

Moreover, with its debt levels falling below its guidance of $10 billion, CNQ will return 100% of its free cash flows to its shareholders, making its future dividend payouts safer. The company has raised its dividends at a CAGR of 21% for the previous 24 years, while its forward yield stands at 4.3%.

Should you invest $1,000 in goeasy right now?

Before you buy stock in goeasy, 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 goeasy 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 Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Enbridge, 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 Energy Stocks

golden sunset in crude oil refinery with pipeline system
Energy Stocks

Is Enbridge Stock (TSX:ENB) a Buy for its 5.9% Dividend Yield?

This solid dividend payer has the potential to help investors generate reliable passive income for decades.

Read more »

nugget gold
Dividend Stocks

Recession Stocks Are Back: Consider Buying the Dip This April

Recession stocks are back, and this one could be a solid winner.

Read more »

Person holds banknotes of Canadian dollars
Energy Stocks

Best Stock to Buy Right Now: Suncor vs Cenovus?

Suncor stock's 4.2% dividend yield vs Cenovus Energy's growth potential: Tariff-proof safety or growth gamble?

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

How to Earn $500/Month in Tax-Free Income With Your TFSA

Canadians can earn $500 or a desired tax-free income every month by saving and investing through the TFSA.

Read more »

how to save money
Energy Stocks

1 Canadian Stock Ready to Surge in 2025 and Beyond

This Canadian stock has seen significant growth, but more could come for 2025 and beyond.

Read more »

oil and natural gas
Energy Stocks

Here’s How Many Shares of Enbridge You Should Own to Get $2,000 in Yearly Dividends

Solid dividend stocks like Enbridge could help you generate reliable passive income for decades.

Read more »

Pumpjack in Alberta Canada
Energy Stocks

3 Canadian Oil and Gas Stocks to Watch for in 2025

Oil companies like Suncor Energy (TSX:SU) are doing well this year.

Read more »

Aerial view of a wind farm
Energy Stocks

The Best Renewable Energy Stocks to Buy Before They Take Off

Here are two of the best Canadian renewable energy stocks you can buy today and hold for the long term…

Read more »