Some Canadian companies stand out for their rock-solid dividend payouts. These ultra-safe dividend stocks have secured yields that are backed by solid fundamentals, consistent cash flow, sustainable payouts, and healthy balance sheets, making them dependable even during economic downturns.
Thus, for investors seeking reliable income, here are two ultra-safe dividend stocks to consider now. These stocks have never reduced or stopped their payouts. Further, they have been consistently increasing their dividends.
However, it’s important to remember that while these dividend stocks are known for their stability, no payout is ever 100% guaranteed, and every investment carries some level of risk.
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Dividend stock #1
Canadian Natural Resources (TSX:CNQ) is one of the top Canadian dividend stocks with an ultra-safe yield. This oil and natural gas production company is known for reliable payouts and consistent dividend increases.
Its diversified portfolio of long-life, low-decline assets and low maintenance capital spending generates substantial free cash flow, even in volatile commodity price environments. Moreover, its break-even cost to sustain operations and dividends remains low. This acts as a cushion in downturns and fuels growth during an upswing.
Thanks to its high-quality assets and efficient operating structure, the energy giant has increased its quarterly dividend for 25 consecutive years. Moreover, Canadian Natural’s dividend has grown at a compound annual growth rate (CAGR) of 21% during this period. It currently pays a quarterly dividend of $0.588 per share, reflecting a high and ultra-safe yield of 5.4%.
Canadian Natural also continues to shore up its balance sheet. It is focusing on reducing net debt and has lowered it by $1.4 billion in the first quarter of 2025. Moreover, with approximately $5.1 billion in available liquidity as of March 31, the company is well-positioned to pursue opportunistic acquisitions or further enhance shareholder value.
Its solid asset base, low-cost structure, and efficient operations will drive its free cash flow generation and return on capital. In addition, its large inventory of low-capital-intensity projects positions the company well for sustained future growth.
Dividend stock #2
Fortis (TSX:FTS) is another reliable stock to earn an ultra-safe yield. It operates a diverse portfolio of regulated utility businesses, which generate predictable cash flow regardless of economic conditions. Moreover, Fortis is mainly an energy delivery company, with 93% of its assets tied to transmission and distribution. These businesses are low-risk and generate predictable earnings and cash flows.
Thanks to its defensive business model and low-risk earnings, this utility company has consistently paid and increased its dividends for decades. In the fourth quarter of 2024, Fortis increased its dividend by 4.2% to $0.615 per share, marking its 51st consecutive year of dividend hikes. Its payout ratio has remained comfortably sustainable, with an adjusted 73% payout in 2024 and an average of 76% over the past five years. Based on its current payouts, Fortis offers investors a secure yield of 3.8%.
Looking ahead, Fortis’s $26 billion five-year capital plan will expand its transmission infrastructure and position it well to capitalize on energy transition opportunities. Moreover, it will expand the company’s rate base.
Management expects the company’s rate base to grow at a CAGR of 6.5% over the next five years, which will bolster its low-risk earnings and support projected dividend growth of 4% to 6% annually over that period.
