The search for top dividend stocks to buy is always on, but for Canadian investors, this search is one that may be easier than in other markets.
The TSX happens to be chock full of premium dividend stocks and companies I think investors can own for the long term to create stable and meaningful passive income streams. Whether that’s for retirement or for investors looking to be part of the FIRE (financially independent, retire early) movement, these are three great dividend stocks I think are at least worth looking at right now.
Enbridge
Enbridge (TSX:ENB) is one of North America’s largest energy infrastructure companies, known for its extensive pipeline network and utility assets. The company has a strong track record of delivering stable and growing dividends, making it an ideal choice for income-focused investors.
Enbridge has a strong history of dividend increases, with over 28 years of consecutive hikes. The company’s current dividend yield is around 6.4%, making it one of the highest among blue-chip TSX stocks. Moreover, it’s important to note that Enbridge operates a regulated pipeline business. This fact alone ensures consistent and predictable cash flows. That’s what most investors should be after, at the end of the day.
Enbridge is not just a pipeline company. Rather, the company has recently been expanding into renewable energy, including wind and solar projects, positioning itself for future growth. With ongoing infrastructure projects and acquisitions, Enbridge continues to grow its asset base, supporting future dividend increases. Enbridge’s high yield, dividend growth, and defensive qualities make it an attractive stock for long-term investors seeking stability and income.
Fortis
Fortis (TSX:FTS) is a leading North American utility company known for its regulated electric and gas operations. It is one of the most reliable dividend stocks on the TSX, appealing to investors who prioritize steady income and capital preservation.
Fortis has increased its dividend for 50 consecutive years, making it one of Canada’s most consistent dividend growers. And importantly, around 99% of Fortis’ earnings come from regulated operations, providing predictable cash flows.
The company has outlined a capital investment plan exceeding $25 billion for infrastructure improvements and renewable energy projects, ensuring continued expansion. Fortis is less affected by economic downturns as a utility stock, making it a defensive investment during market uncertainty. With its impressive dividend track record and resilient business model, Fortis remains a cornerstone for investors looking for dependable income and long-term security.
Suncor Energy
Suncor Energy (TSX:SU) is a major player in Canada’s oil and gas industry, known for its integrated operations, which include oil sands production, refining, and retail services. The company’s dividend program has remained robust, even during volatile oil price periods.
Suncor’s dividend yield currently sits around 4%, making it a compelling choice for income-seeking investors. The company benefits from owning upstream (oil production) and downstream (refining and retail) operations, providing stability even when oil prices fluctuate.
Moreover, Suncor generates significant free cash flow, allowing it to return capital to shareholders through dividends and share buybacks. With improving oil prices and continued efficiency improvements, Suncor is well-positioned to deliver strong financial performance and sustain its dividend payments. Suncor’s combination of income generation, operational efficiency, and exposure to energy markets makes it an attractive dividend stock for investors looking for growth and income.
