Even a modest investment can make a meaningful impact on your portfolio in the long run — especially when it’s placed in the right large-cap stocks. In Canada, several Dividend Kings have been rewarding their investors with increasing dividends for decades. With just a $10,000 investment, you could tap into $424 in annual income simply by investing in two of these time-tested giants. In addition, these companies also showcase resilience during economic downturns, making them ideal for investors seeking both stability and long-term growth.
In this article, I’ll introduce two such TSX-listed dividend stocks that could help you build a dependable income and strengthen your long-term financial foundation.
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Fortis stock
One solid option investors can consider right now is Fortis (TSX:FTS), a utility giant that’s been delivering reliable returns for decades. It mainly focuses on regulated electric and gas utility space, operating across Canada, the U.S., and the Caribbean. After rallying by 25% over the last year, FTS stock currently trades at $67.34 per share, giving the company a market cap of around $34 billion. For income seekers, it currently offers an attractive annualized dividend yield of about 3.7%, with payouts every quarter.
In 2024, Fortis posted a 6% YoY (year-over-year) increase in its adjusted net earnings to $3.28 per share, mainly driven by consistent rate base growth and new customer rates coming into effect at several utilities like Tucson Electric Power and Central Hudson. Similarly, its adjusted annual EBITDA (earnings before interest, taxes, depreciation, and amortization) also rose about 6% YoY.
Notably, Fortis is pushing ahead with a $26 billion five-year capital plan to expand its electric transmission grid and strengthen its renewable infrastructure. This ongoing investment, combined with a strong track record of 51 consecutive years of dividend increases, makes Fortis a dependable choice for investors who want long-term income and stability.
Canadian Utilities stock
Another top Dividend King investors may want to consider is Canadian Utilities (TSX:CU). This diversified global energy infrastructure company is based in Calgary and operates across utilities, energy storage, and infrastructure development. CU stock has climbed about 23% over the past year and currently trades at $37.74 per share with a market cap of $7.7 billion. It offers an appealing 4.9% annualized dividend yield, with payouts distributed every quarter.
Last year, Canadian Utilities’s adjusted earnings rose by 9% YoY to $647 million due mainly to steady investments in its regulated utilities segment. However, its net reported earnings slipped, mainly due to restructuring costs and some one-time items like a sale loss and regulatory settlements.
On the growth side, Canadian Utilities is advancing major infrastructure projects like the Yellowhead natural gas pipeline and the Central East Transfer-Out electricity transmission line. With a solid $6.1 billion capital plan through 2027, Canadian Utilities has the potential to continue yielding dependable income for decades.
| COMPANY | RECENT PRICE | INVESTED MONEY | NUMBER OF SHARES | DIVIDEND PER SHARE | PAYOUT FREQUENCY | TOTAL ANNUAL PAYOUT |
| Fortis | $67.34 | $5,000 | 74 | $0.6150 | Quarterly | $182 |
| Canadian Utilities | $37.74 | $5,000 | 132 | $0.4577 | Quarterly | $242 |
| Total Annual Payout | $424 | |||||
| Prices as of Apr 25, 2025 |
Foolish bottom line
If you divide a total investment of $10,000 equally between these two Dividend Kings, you will be able to buy around 74 shares of Fortis and 132 shares of Canadian Utilities at current prices.
Together, this portfolio could generate approximately $424 in reliable annual income today — with the potential for that figure to keep growing over time as both companies continue their decades-long tradition of dividend increases.
