Top 3 Dividend Stocks to Buy Before the Year Runs Out

Let’s dive into three of the top Canadian dividend stocks investors may want to consider during this point in the investing cycle right now.

Investors looking for top dividend stocks in this market certainly have plenty of options to choose from. For Canadian investors, the good news is that there are plenty of top options available on the TSX, and some of these companies are among the best picks I have for North America overall for 2025.

The companies I’m going to discuss on this list have the ability to weather whatever storms we may be up against over the next year while also providing a high likelihood of raising their distributions over the next year (and in coming years as well).

Here are three top Canadian dividend stocks I think investors may want to consider buying before we wrap up 2024.

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Fortis

Fortis (TSX: FTS) offers an opportunity to add a reliable and dividend-focused stock to your portfolio. As one of North America’s largest utility companies, Fortis provides electricity and natural gas to millions of customers, operating in a sector known for stability and resilience.

The company operates in the regulated utility sector, ensuring consistent and predictable revenue. Almost 99% of its earnings come from regulated utility operations, offering long-term growth opportunities regardless of economic cycles. Fortis is a top choice for income-focused investors due to its strong history of dividend growth. The company has increased its dividend for nearly 50 consecutive years, making it one of Canada’s most reliable dividend stocks.

In addition, the company offers a dividend yield of approximately 4%, which is attractive for a low-risk investment. Fortis targets annual dividend growth of 4-6% through 2028, supported by its regulated earnings and robust capital investment program.

Restaurant Brands

Restaurant Brands (TSX: QSR) offers an opportunity to gain exposure to one of the world’s largest fast-food companies with a portfolio of iconic brands. As the parent company of Tim Hortons, Burger King, Popeyes, and Firehouse Subs, Restaurant Brands combines global reach, strong brand equity, and a growth-oriented strategy to be a fantastic option investors can consider before the year is out.

Restaurant Brands’s management team continues to focus on expanding its footprint, increasing franchise profitability and enhancing customer experience. It is aggressively growing in underpenetrated regions like Asia, Latin America, and the Middle East, which offer significant long-term growth potential. Moreover, the brand launches new products and limited-time offerings across its brands to drive customer engagement and repeat visits.

Restaurant Brands’s investments in digital platforms, loyalty programs, and delivery partnerships boost sales and improve customer convenience. In addition, the company’s performance is tied to the profitability of its franchisees, and challenges at the franchise level could impact overall growth.

Toronto-Dominion Bank

Toronto-Dominion Bank (TSX: TD) provides an excellent opportunity to gain exposure to one of Canada’s largest and most stable financial institutions. With a strong presence in Canada and the U.S., TD Bank combines robust earnings, a commitment to shareholder returns, and growth initiatives that position it well for long-term success.

TD is the second-largest bank in Canada by market capitalization and one of the top 10 banks in North America. Its diversified operations across retail banking, wealth management, insurance, and capital markets ensure stability and resilience. In addition, the bank has a commanding position in the Canadian banking sector, benefiting from consistent demand for personal and business banking services.

The bank’s significant presence in the U.S., particularly along the East Coast, provides access to a larger, high-growth market. Its acquisition of First Horizon Bank will further enhance its U.S. footprint. TD offers reliable passive income with a dividend yield of approximately 5%. The bank has a strong track record of annual dividend increases, supported by its consistent earnings growth and strong capital position.

Fool contributor Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and Restaurant Brands International. The Motley Fool has a disclosure policy.

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