With market volatility back in the headlines, many investors are turning to defensive sectors for safety and income. Utilities are a classic choice. These provide essential services, tend to perform well in downturns, and often come with generous dividends. In June, three Canadian utilities stand out as screaming buys for long-term investors: Emera (TSX:EMA), Hydro One (TSX:H), and TransAlta (TSX:TA). Each offers a unique mix of stability, income, and potential upside.
Emera
Emera is a Halifax-based utility with operations across North America. It delivers electricity and natural gas to over 2.5 million customers. What makes Emera stand out is its steady focus on long-term growth. The Canadian stock recently reported strong results for the first quarter of 2025, with revenue up 33% to $2.68 billion.
Net income rose to $342 million from $312 million last year, and diluted earnings per share (EPS) increased to $1.22 from $1.11. Emera continues to invest in cleaner energy and infrastructure, with $8.8 billion in capital spending planned through 2027. That steady investment supports its dividend, which currently yields around 4.75%. The payout ratio remains reasonable, and the dividend has grown for 17 consecutive years. At around $61 per share, the stock trades slightly below its 52-week high and offers an attractive entry point.
Hydro One
Next is Hydro One, the largest electricity transmission and distribution company in Ontario. It serves nearly 1.5 million customers and has a regulated business model that offers dependable revenue. For the first quarter of 2025, Hydro One reported revenue of $2.1 billion, with earnings of $294 million or $0.49 per share. It also raised its dividend to $0.3331 per quarter, up from $0.2964 a year ago.
That brings the annual payout to $1.3324 per share, for a yield of about 2.7%. While the yield is lower than some peers, Hydro One makes up for it with lower risk. Its business is tightly regulated, which means consistent earnings regardless of economic conditions. At around $49 per share, it’s near all-time highs, but for conservative investors, it’s still worth buying.
TransAlta
Then there’s TransAlta, one of Canada’s largest renewable energy producers. It operates wind, hydro, solar, and natural gas power plants across Canada, the U.S., and Australia. TransAlta pays an annual dividend of $0.26 per share, giving it a yield of roughly 1.7%.
The stock trades around $15, well below its 52-week high. While the company reported modest earnings of $70 million in the most recent quarter and a payout ratio of around 100%, it maintains long-term contracts that provide reliable cash flow. The yield compensates for slower growth and higher risk. Investors looking for income should take note.
Bottom line
Each of these Canadian stocks plays a different role. Emera offers a mix of growth and income, with expanding operations and a long dividend track record. Hydro One provides safety and predictability, backed by a regulated business and solid financials. TransAlta brings the highest yield and exposure to the growing clean energy sector, though with a bit more risk. Holding all three could give your portfolio a well-rounded boost of stability and income — one that could bring in $1,213.12 in annual income if investing $10,000 in each stock.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| EMA | $60.93 | 164 | $2.90 | $475.60 | Quarterly | $9,991.02 |
| H | $48.92 | 204 | $1.33 | $271.32 | Quarterly | $9,979.68 |
| TA | $15 | 666 | $0.70 | $466.20 | Monthly | $9,990 |
Utilities don’t usually make headlines, but that’s part of the appeal. In uncertain times, consistency is valuable. These Canadian stocks aren’t trying to reinvent the wheel; instead, they deliver power, pay dividends, and make strategic moves to stay relevant. In a market where so many stocks feel shaky, that’s exactly the kind of investment many Canadians are looking for right now.
