High–quality dividend stocks can help earn regular passive income for decades. For instance, several fundamentally strong Canadian dividend stocks have been consistently paying and increasing their payouts regardless of economic ups and downs, making them some of the most attractive investments on the TSX for those seeking reliable income without stress. Against this backdrop, here are three top TSX dividend stocks worth considering in October.
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Dividend stock #1
Utility giant Fortis (TSX:FTS) is one of the top Canadian dividend stocks to buy in October. The company’s low-risk business model, with 93% of its assets focused on transmission and distribution, makes it less vulnerable to fluctuations in power generation and commodity prices. This stability allows Fortis to pay and increase its dividends reliably. Further, its regulated cash flows and strong rate base growth add another layer of stability and growth.
Fortis recently announced a 4% increase in its dividend, marking 51 years of dividend growth. Further, 99% of Fortis’ business is fully rate-regulated, implying that its payouts are well-covered and safe.
Looking ahead, Fortis’ $26 billion capital plan and robust transmission investment pipeline will enable the company to grow its rate base by about 6.5% annually through 2029. As the rate base grows, so will Fortis’ earnings, supporting expected annual dividend growth of 4–6% through 2029.
In summary, Fortis’ regulatory framework, expanding rate base, and steady cash flows offer visibility into its future dividend growth. Currently yielding around 4%, Fortis remains a solid pick for income-focused investors.
Dividend stock #2
Investors seeking reliable and growing dividend income could consider Enbridge(TSX:ENB). The company’s diversified cash flows, integrated energy infrastructure assets, and low-risk cash flows enable it to consistently pay and increase its dividends. Notably, 98% of its EBITDA comes from cost-of-service or contracted assets, and about 80% is protected against inflation.
Thanks to its low-risk financials, Enbridge generates predictable cash flows. Moreover, it raised its dividend for 29 consecutive years. In the last five years, it returned about $34 billion to its shareholders in dividends. Further, it plans to return over $40 billion to its shareholders in dividends between 2024 and 2028.
Its liquid pipelines are expected to benefit from high utilization and low-cost expansion opportunities. Further, with minimal exposure to commodity price fluctuations, Enbridge’s gas transmission business is poised to generate stable cash flows as demand for natural gas grows. Also, Enbridge’s diversified utility business, investments in renewable power, solid balance sheet, and acquisitions will support future earnings and dividend growth. While Enbridge’s payouts are secure and sustainable, it offers a high yield of 6.3%.
Dividend stock #3
With its rapidly growing dividend, Canadian Natural Resources (TSX:CNQ) is one of the top TSX stocks worth considering for worry-free passive income. The company’s high-quality assets generate significant and sustainable free cash flows that enable it to increase its dividend consistently. Thanks to its solid financials, this oil and gas company has increased its dividend at an average annualized growth rate of 21% in the past 25 consecutive years.
The company’s disciplined capital allocation enables it to enhance its shareholder value through dividends and share buybacks. Further, it helps Canadian Natural Resources to strengthen its balance sheet and reduce debt.
In the future, its high-value reserves and low-decline assets will help maintain strong cash flows. Further, less capital-intensive projects and lower maintenance costs will support its cash flows and dividend payments. Moreover, the company’s focus on strategic acquisitions and improving operational efficiency will accelerate its growth and cushion its bottom line. Overall, Canadian Natural Resources is a dependable income stock and currently offers an attractive yield of 4.3%
