Economic storms may come and go, but certain companies have proven they can not only survive but thrive – and keep rewarding shareholders along the way. Investors seeking stability and growth through potential economic storms could check out Canadian dividend growth stocks with a decades-long history of uninterrupted payments, even through recessions. They may thrive through a tariff storm.
The three TSX dividend all-stars on the spotlight are like anchors in choppy markets. The blue-chip stocks have consistently boosted dividends through multiple economic downturns. They’re proven winners with the financial strength to keep delivering, no matter what the economy throws at them.
The contenders at a glance are:
| Company | Recessions Survived | Dividend Initiated | Years of Dividend Growth | Current Yield |
| Canadian Utilities (TSX:CU) | 6 | 1963 | 53 | 5.1% |
| Fortis Inc. (TSX:FTS) | 5 | 1966 | 51 | 3.8% |
| Toromont Industries (TSX:TIH) | 4 | 1968 | 35 | 1.8% |
Let’s dive into their unique stories.
Canadian Utilities stock
If reliability had a name, it might just be Canadian Utilities (TSX:CU). With a staggering 53-year dividend growth streak – the longest on the TSX – this utility giant has raised payouts through six past recessions. Today, CU stock offers a juicy 5.1% dividend yield, making it a standout for income-focused investors.
What’s behind this track record? A rock-solid business model. Utilities thrive in all economies because people always need electricity, heat, and water.
Canadian Utilities is cementing its stability with a multi-billion capital investment plan (2025–2027), targeting 5.4% annual revenue growth. Recent wins, like an upgraded contract for its Australian gas division, boosted its regulated return on equity from 5% to 8.2% – a move that strengthens cash flow for future dividends.
Even better, Canadian Utilities stock’s earnings payout ratio sits comfortably below 80%, meaning dividends are well-covered by profits. While tariffs and regulatory changes are risks, Canadian Utilities’ diversified assets and regulated revenue streams provide a safety net.
Fortis
Fortis Inc. (TSX:FTS) stock is the definition of “slow and steady wins the race.” This electric utility has paid uninterrupted dividends since 1966 and delivered 51 consecutive years of dividend hikes, surviving five recessions with its payouts intact. Its current yield of 3.8% is attractive, but the real story lies in its growth plans.
Fortis is pouring $26 billion into infrastructure upgrades between 2025 and 2029, focusing on low-risk, regulated projects like grid modernization and renewable energy. These investments are expected to grow its revenue base by 6.5% annually, ensuring a steady stream of cash to fund future dividend increases. Financially, the company is firing on all cylinders: adjusted earnings rose 6% last year, and its 20-year total returns have handily outperformed many utility-sector peers.
Management’s confidence is equally reassuring. During a recent earnings call, CFO Jocelyn Perry noted that U.S. tariffs pose “no immediate material impact” on operations.
With 99% of its assets in regulated markets, Fortis stock stands significantly insulated from economic volatility. The stock is a no-brainer buy for investors seeking a blend of passive income and capital growth.
Fortis stock is a fortress for investors craving dividend consistency.
Toromont Industries
Don’t let Toromont Industries (TSX:TIH) stock’s modest 1.8% yield fool you. This industrial sector gem has quietly raised dividends for 35 straight years, including an 8.3% hike recently. Even more impressive? A $1,000 investment 20 years ago would have grown into a $13,700 position generating a 9% yield on cost – proof that dividend growth magnifies compounding for patient investors.
Toromont Industries stock’s strength lies in its niche markets. It’s Equipment Group supplies machinery for mining, construction, and infrastructure – sectors critical to Canada’s economy. Meanwhile, its CIMCO refrigeration segment serves industries like food storage and ice rinks. With 97% of revenue from Canada, Toromont is largely shielded from U.S. import tariff risks. However, the company imports heavily from the United States.
Earnings cover TIH stock’s dividends very well. Dividends consume under 35% of earnings. There’s ample room for future hikes. Toromont Industries has been a compounding machine for long-term oriented investors, even through economic storms. Reinvested dividends could have amplified total returns from a 777% capital gain to a 1,270% total return for patient investors over the past two decades.
Investor takeaway
Long term investing doesn’t avoid storms – it’s about finding those ships built to sail through them. Canadian Utilities, Fortis, and Toromont Industries have navigated multiple recessions, emerging stronger each time. Their dividends aren’t just safe; they’re growing. These TSX dividend all-stars deserve a spot in your portfolio. They may afford investors good nights’ sleep during tariff-induced financial turbulence.
