3 Top Utilities Sector Stocks for Canadian Investors in 2025

Security? Check. Stability? Check. Dividends? Check! So, what’s holding back Canadians from investing?

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 7, 2025 4:10 pm EST

In the changing landscape of Canadian utilities, three giants stand tall in this current market. Each utility stock offers a unique blend of stability, growth, and commitment to renewable energy, making them compelling choices for investors in 2025.

Electricity transmission towers with orange glowing wires against night sky — Source: Getty Images

Fortis

Fortis (TSX: FTS), a stalwart in the utility sector, consistently demonstrated robust financial health. In its recent earnings report, Fortis highlighted a 2.2% year-over-year increase in quarterly revenue, reaching $11.51 billion for the 12 months ending Dec. 31, 2024. This growth shows the utility stock’s strength and ability to adapt in a dynamic market.

Notably, Fortis has a strong track record of rewarding its shareholders. The utility stock has increased its dividends for 51 consecutive years, reflecting its commitment to delivering consistent returns. Currently, Fortis offers a forward dividend yield of approximately 3.84%, with an annual dividend of $2.46 per share, making it an attractive option for income-focused investors.

Hydro One

Hydro One (TSX: H), Ontario’s primary electricity transmission and distribution service provider, continues to showcase solid performance. The utility stock’s recent financials reveal a 5.9% year-over-year growth in quarterly revenue, totalling $8.48 billion over the past year. This steady growth highlights Hydro One’s pivotal role in the province’s energy infrastructure.

Investors seeking reliable income streams will find Hydro One appealing. With an annualized dividend of $1.26 per share, the utility stock offers a yield of around 2.8%. This consistent payout reflects Hydro One’s stable cash flows and its dedication to returning value to shareholders.

Brookfield Renewable

Brookfield Renewable Partners (TSX: BEP.UN) stands at the forefront of the renewable energy sector. The utility stock reported record funds from operations (FFO) of $1.217 billion, or $1.83 per unit, for the 12 months ending Dec. 31, 2024, a 10% increase on a per-unit basis compared to the previous year. This achievement shows Brookfield’s strategic investments and operational excellence in renewable energy.

In recognition of its strong performance, Brookfield announced a 5% increase in its annual distribution, raising it to $1.492 per unit. This marks the 14th consecutive year of distribution growth, reflecting the company’s robust financial health and commitment to delivering value to its investors.

Future focus

Looking ahead, Fortis outlined a $26 billion capital plan extending through 2029, aiming for a 6.5% annual rate base growth. This ambitious plan focuses on enhancing its regulated utility assets, ensuring long-term stability and growth potential.

Hydro One’s strategic position as a near-monopoly in Ontario’s electricity transmission and distribution sector provides it with a stable revenue base. The utility stock’s ongoing investments in infrastructure modernization are expected to support its growth trajectory and operational efficiency.

Brookfield Renewable’s expansive portfolio, encompassing hydro, wind, solar, and battery storage assets, positions it well to capitalize on the global shift toward clean energy. The utility stock’s proactive approach to asset recycling and strategic acquisitions is expected to drive sustained growth in the renewable sector.

Bottom line

These utility stocks each present unique value propositions for investors. Fortis offers a blend of stability and growth through its extensive capital plan and consistent dividend increases. Hydro One provides reliable income backed by its dominant position in Ontario’s electricity market. Brookfield Renewable stands out with its strong commitment to renewable energy and impressive financial performance. Together, these companies exemplify the strength and diversity of Canada’s utilities sector in 2025.