Economic uncertainties and global trade tensions continue to haunt investors in early 2025. This is one of the key reasons why, after rallying 18% in 2024, the TSX Composite Index has turned highly volatile this year.
For Canadian investors seeking stability and income amid the turbulence, utility stocks are once again stepping into the spotlight. With their predictable cash flows, regulated revenue models, and history of reliable dividends, utility companies can withstand temporary economic storms.
Let’s take a closer look at two of the best Canadian utility stocks you can buy in 2025 and hold for years to come.
AltaGas stock
If you’re looking for a dependable Canadian utility stock to hold through thick and thin, AltaGas (TSX:ALA) could be worth a closer look. Headquartered in Calgary, it’s a North American energy infrastructure firm that runs two core businesses, utilities and midstream. Notably, the company serves over 1.6 million customers in the United States while also handling natural gas processing, storage, and exports across North America.
ALA stock has been climbing steadily, gaining more than 32% over the past year. With this, it’s trading at $39.05 per share with a market cap of $11.6 billion. Investors also get a 3.2% annualized dividend yield, making it even more attractive for income-focused investors.
In the fourth quarter of 2024, AltaGas posted solid numbers as its revenue jumped 18% sequentially to $3.3 billion. Similarly, its adjusted quarterly EBITDA (earnings before interest, taxes, depreciation, and amortization) rose 3.6% YoY (year over year) to $520 million. For the full year, the company’s EBITDA hit $1.8 billion, the top end of its guidance. This strength in its financials mainly came from increased export volumes of liquefied petroleum gas, continued investment in regulated utilities, and cost-cutting measures.
AltaGas is continuing to invest heavily in modernizing its utility infrastructure, expanding into data centre partnerships in Virginia, and growing export capacity through big midstream projects. These efforts are backed by long-term contracts that make its cash flow largely predictable, adding to the appeal of its solid utility stock.
Emera stock
Another solid Canadian utility stock to keep on your radar in 2025 is Emera (TSX:EMA), especially if you’re after steady income and long-term reliability. This Halifax firm provides electricity and natural gas to millions of customers across Canada, the U.S., and the Caribbean.
EMA stock has gone up over 24% in the last year to currently trade at $58.94 with a market cap of $17.5 billion. Investors also get an attractive 4.9% annualized dividend yield.
In the fourth quarter, Emera’s adjusted earnings jumped 33% YoY to $0.84 per share. More importantly, its adjusted net profit surged nearly 41% to $246 million due to stronger performance at all its regulated utilities. For the full year, the company’s adjusted net profit rose 5% YoY to hit $849 million. Emera is now gearing up to invest $20 billion over the next five years to modernize its grid and expand infrastructure. With that kind of long-term plan, this utility stock could continue to outperform the broader market by a wide margin.
