4 Unstoppable Utility Stocks to Buy Right Now for Less Than $500

Dividend stocks are great, but these three in the energy sector are some of the top choices for the long term.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 30, 2025 4:30 pm EDT

When markets get rocky and inflation starts to bite, many investors turn to dependable dividend stocks. Utility stocks often top the list, offering a combination of essential services, regulated revenue, and consistent cash flow. Best of all, many of these top-tier Canadian utility stocks are still trading well under $500 per share. If you’re looking to build a strong portfolio without breaking the bank, here are four unstoppable options to consider right now.

Start line on the highway — Source: Getty Images

Hydro One

Hydro One (TSX: H) is one of Ontario’s largest electricity transmission and distribution companies. It operates about 30,000 circuit kilometres of high-voltage transmission lines, and its customer base spans more than 1.5 million people. This isn’t the kind of business that gets exciting headlines, but it’s steady and essential.

In its most recent earnings for the first quarter of 2025, Hydro One posted revenue of $2.41 billion, up from $2.17 billion the year before. Net income rose to $358 million, with earnings per share (EPS) climbing to $0.60. It also raised its dividend to $1.33 annually, continuing a slow and steady trend of annual increases. Year to date, the Canadian stock is up modestly, showing stable investor confidence and the kind of predictable performance utility investors love.

BEP

Brookfield Renewable Partners (TSX: BEP.UN) is one of the world’s largest publicly traded renewable power platforms. It owns and operates hydroelectric, wind, solar, and energy storage facilities across North America and globally.

In the first quarter of 2025, Brookfield reported revenue of US$907 million and funds from operations of US$0.48 per unit. While it posted a net loss of US$0.35 per unit, that was largely due to non-cash items. The core business is generating strong cash flow, and management remains optimistic about long-term demand for clean energy. The Canadian stock trades for well under $500 and offers a yield close to 6%, with a consistent track record of dividend growth.

Algonquin

Algonquin Power & Utilities (TSX: AQN) delivers both utility and renewable energy services across North America. In its latest quarter, the Canadian stock reported revenue of $692.4 million and net income of $78.9 million, turning around last year’s net loss in the same quarter.

Adjusted EPS came in at US$0.14, ahead of analyst estimates. Management also reaffirmed its commitment to financial stability and targeted a return on equity near 8.5% by 2027. Algonquin’s diversified utility portfolio and infrastructure investments make it an interesting long-term bet, especially for investors looking for value. The Canadian stock remains well under $500 and pays a solid dividend while offering the potential for capital recovery as earnings improve.

Boralex

Boralex (TSX: BLX) rounds out this list as a renewable energy developer and operator with assets in Canada, France, and the United States. In the first quarter of 2025, Boralex generated $237 million in revenue, down about 12% from the year before, mostly due to lower production in Europe and reduced energy prices.

Net earnings also declined to $41 million from $73 million. While this might seem concerning, Boralex still produced positive discretionary cash flow and maintained a healthy balance sheet with $388 million in cash and undrawn credit. It remains a growth-focused player in the renewable sector, and at current prices, it offers an attractive entry point for long-term investors who believe in the clean energy transition.

Bottom line

All four of these utility stocks offer strong dividend yields, exposure to either regulated or renewable energy markets, and price tags well under $500. For Canadians looking to add stability and income to their portfolios without overpaying, these Canadian stocks deserve attention. These may not shoot higher overnight, but steady income and growing demand for energy make them compelling for the long haul.

In uncertain times, the value of steady dividends and reliable services becomes even clearer. These utility stocks are built for exactly that. And at these prices, it’s easy to buy and even easier to hold.