The Canadian stock market seems on fire in 2024, with the TSX Composite Index continuing to hit new highs in November. This market rally was mainly driven by broad-based sector gains, declining interest rates, and renewed optimism following the U.S. presidential election results.
While this rally has benefited investors across sectors, it also raises questions about long-term sustainability, as macroeconomic uncertainties aren’t completely out of the picture. And if you’re looking for opportunities to protect your portfolio from any possible market downturn while still generating consistent income, dividend-paying stocks remain some of the best options. This is because stocks with a proven track record of stable and growing dividend payouts not only provide reliable cash flow but also tend to be more stable during periods of market volatility.
In this article, I’ll highlight two of the safest dividend stocks you can buy on the TSX today to secure steady income virtually forever.
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Enbridge stock
Talking about the safest dividend stocks in Canada, Enbridge (TSX:ENB) is undoubtedly one of the first names that comes to my mind. This Calgary-based energy infrastructure giant operates a vast network of pipelines and storage facilities to transport a significant portion of North America’s crude oil and natural gas.
After surging by nearly 26% so far in 2024, ENB stock currently trades at $60.01 per share with a market cap of $130.7 billion. Although dividend yield tends to decline as stock prices rise, Enbridge still offers an attractive annualized dividend yield of 6.1% at its current market price.
Earlier this month, Enbridge released its third-quarter financial results, which proved why it’s such a reliable pick for long-term dividend investors. During the quarter, the company delivered an impressive 51.2% YoY (year-over-year) increase in its total revenue to $14.9 billion with the help of strong asset performance and strategic acquisitions. Despite facing an uncertain macroeconomic environment, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) climbed by 8.5% YoY to $4.2 billion.
If you don’t know it already, Enbridge has been raising its dividends for 29 consecutive years. And its continued focus on diversifying its business further and growing cash flow suggests that the recent streak is far from over.
Canadian Natural stock
Canadian Natural Resources (TSX:CNQ) could be another safe stock for investors seeking a reliable dividend income for decades. The Canadian oil and gas giant currently has a market cap of $100.4 billion as its stock trades at $47.59 per share after rising by 9.6% year to date. It has a 4.7% annualized dividend yield at this price.
In the September 2024 quarter, CNQ achieved an average production of 1,363,000 barrels of oil equivalent per day, including 1,022,000 barrels per day of liquids. Impressively, their oil sands mining and upgrading assets hit record production levels during the quarter, with synthetic crude oil output averaging 498,000 barrels per day. These operations are not just high-performing but also highly efficient, with top-tier operating costs of just $20.67 per barrel.
Besides its excellent track record of increasing dividends for 25 consecutive years, Canadian Natural’s strong asset base and ability to generate solid free cash flow make it one of the safest dividend stocks for long-term investors in Canada.
