Canadian savers are searching for reliable dividend stocks to add to their self-directed Registered Retirement Savings Plan (RRSP) portfolios.
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Fortis
Fortis (TSX:FTS) just reported solid first-quarter (Q1) 2025 earnings results. Net income for the quarter came in at $499 million, or $1.00 per share, compared to $459 million, or $0.93 per share, in the same period last year.
The company put $1.4 billion in capital to work in the quarter as part of the $5.2 billion capital plan for all of 2025. Fortis is working on a $26 billion capital program over five years that will raise the rate base from $39 billion in 2024 to $53 billion in 2025. That works out to a five-year compound annual growth rate of about 6.5%. As the new assets are completed and go into service, the company expects earnings growth to support planned annual dividend increases of 4% to 6% through 2029.
Fortis is up 24% in the past year and just hit a new high. Investors who buy FTS stock at the current level can get a dividend yield of 3.6%. The board has increased the dividend for 51 consecutive years.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) increased its dividend twice in 2024 and already raised it again in 2025. This is the 25th consecutive annual dividend hike from the oil and natural gas producer. CNRL’s dividend-growth stability comes from its strong balance sheet and diversified assets.
CNRL delivered record production in 2024, and growth is expected to continue in 2025, supported by the capital program and contributions from the US$6.5 billion acquisition of Chevron’s Canadian assets late last year. The company has the flexibility to quickly shift capital around the portfolio to take advantage of positive moves in commodity prices. CNRL owns large natural gas operations, along with oil sands, conventional heavy oil, conventional light oil, and offshore oil production.
CNRL’s share price is down 25% in the past 12 months. The pullback gives investors an opportunity to buy CNQ stock at a discounted price while picking up a solid 6% dividend yield. Near-term volatility should be expected while the U.S. negotiates trade agreements with China and other major trading partners. Further weakness is certainly possible for CNQ stock, but any additional downside should be viewed as an opportunity to increase the position. At some point, the oil market will rebound.
CNRL is still very profitable, even at current oil prices. The company says its West Texas Intermediate (WTI) breakeven price is in the US$40 to US$45 range. WTI oil currently sells for US$59 per barrel compared to a 12-month high above US$80.
Positive news on a trade deal between the United States and China could ease recession fears and send oil prices sharply higher.
The bottom line on top TSX dividend stocks for RRSP investors
Fortis and CNRL are good examples of top TSX stocks with great track records of dividend growth. If you have some cash to put to work in a self-directed RRSP, these stocks deserve to be on your radar.
