When the stock market is booming — like the TSX Composite’s impressive 22% gain in 2024 — investors often try to chase growth stocks. But as thrilling as a rally can be, it’s just as important for Foolish investors to think long term and prepare their portfolios for potential downturns. The market may not continue moving in one direction forever. That’s why anchoring your portfolio with safe, reliable investments could be a smart way to secure your financial future.
That’s where stable Canadian dividend stocks come into play. Such stocks not only yield consistent income for years but also provide a defensive cushion during uncertain times, making them perfect for any investor following a long-term approach. Let’s look at three of the safest Canadian dividend stocks that can help you build a solid financial base and protect your portfolio from any potential downturns.
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Enbridge stock
The Canadian Dividend Aristocrat Enbridge (TSX:ENB) is known for raising annual dividends for three decades, making it one of the most dependable dividend stocks in Canada. After rallying by nearly 26% year to date, ENB stock currently trades at $60.05 per share with a market cap of $130.9 billion. At this market price, it offers an attractive annualized dividend yield of 6.2%.
Over the last 12 months, Enbridge’s total revenue rose 6.1% YoY (year over year), while its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) improved by 8.2%.
The Canadian energy infrastructure giant recently announced a 3% dividend increase, marking its 30th consecutive year of annual dividend increases. With a new annualized dividend of $3.77 per share starting March 2025, Enbridge continues to show its commitment to delivering steady returns to investors. Additionally, the company’s reaffirmed growth outlook and strong EBITDA projections for 2025 clearly highlight its ability to generate reliable cash flow across market cycles.
Scotiabank stock
Bank of Nova Scotia (TSX:BNS), or Scotiabank, is the second dividend stock on my list that investors can count on for long-term stability and income. It currently has a market cap of $98.5 billion as BNS stock trades at $79.17 per share with 23% year-to-date gains. Its annualized dividend yield stands at 5.4% at this market price.
Interestingly, Scotiabank has been rewarding its investors with attractive dividends every year since 1983. Its fiscal year 2024 (ended in October 2024) financial performance reflected the bank’s continued efforts to improve efficiency and accelerate growth. With a focus on core markets and streamlined operations, the bank managed to achieve a notable 8.5% YoY annual revenue growth despite macroeconomic challenges. This positive momentum in Scotiabank’s financials, paired with its strong capital ratios and disciplined cost management, make it a very reliable dividend stock in Canada.
Brookfield Renewable stock
Another trustworthy name to consider for anchoring your portfolio is Brookfield Renewable Partners (TSX:BEP.UN). This global renewable energy giant has a high-quality asset portfolio, which includes hydroelectric, wind, solar, and energy storage facilities. Brookfield Renewable currently has a market cap of $9.7 billion as its stock trades at $34.10 per share after witnessing a 4% rise over the last three months. At this market price, the stock offers a 5.8% annualized dividend yield.
Besides its large portfolio of renewable assets, Brookfield’s ability to secure long-term contracts, monetize assets, and expand its development pipeline clearly reflects its potential for sustained performance. As the global demand for clean energy surges in the years to come, this dividend stock could stand out as a dependable dividend stock for long-term investors.
