Many publicly traded Canadian companies pay dividends, but only a select few have maintained and even increased their dividends over time. The sustainability of their payouts makes them no-brainer dividend stocks.
So, if you have $1,000 right now, here are three no-brainer dividend stocks to buy now.
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Dividend stock #1: Fortis
If you are looking for a dependable dividend stock, Fortis (TSX: FTS) deserves your attention. Its 51-year streak of dividend increases and visibility over future distributions make it a no-brainer stock. The electric utility company’s well-diversified portfolio of rate-regulated assets generates steady, predictable cash flow, even during economic downturns. Further, Fortis focuses on energy transmission and distribution, which reduces operational risks and adds an extra layer of stability.
Looking ahead, Fortis is investing heavily in infrastructure. It plans to grow its rate base at a compound annual growth rate (CAGR) of 6.5%, which is expected to support steady earnings growth and dividend increases. As global electricity demand continues to rise, Fortis is well-positioned to capitalize on this growth.
Currently, Fortis offers a quarterly dividend of $0.615 per share, which translates to an attractive yield of approximately 3.8%. Management expects to grow the dividend by 4–6% annually through 2029, making Fortis a compelling choice for investors seeking a consistent income stream.
Dividend stock #2: Enbridge
Enbridge (TSX: ENB) is another no-brainer dividend stock, having increased its payouts consistently for over 30 years, even during market crashes. It currently yields about 6% and maintains a sustainable payout ratio of 60% to 70% of its distributable cash flow (DCF). While the company has rewarded its shareholders in the past, its dividend growth streak will likely continue.
The company operates one of North America’s largest energy infrastructure networks, benefiting from high utilization, long-term contracts, and regulated rate structures that cushion it from market volatility. Moreover, its recent strategic acquisitions of three utility companies diversify Enbridge’s revenue stream and deepen its presence in regulated markets. At the same time, growing electricity demand opens new avenues for expansion.
Its high-quality assets and $28 billion in secured growth projects will help the company deliver mid-single-digit earnings growth. This will drive consistent dividend growth in the coming years.
Dividend stock #3: Bank of Montreal stock
Bank of Montreal (TSX: BMO) is another reliable dividend stock to buy right now. This leading Canadian bank has one of the most reliable payout histories, making it a no-brainer for generating passive income.
This financial services company has increased its dividend at a CAGR of 5% in the past 15 years. Moreover, it has uninterruptedly paid dividends for 195 years. BMO’s solid dividend distribution history reflects its ability to generate high-quality earnings and focus on rewarding shareholders through steady dividends. Currently, it offers an annual yield of about 4.2%.
BMO’s well-diversified revenue base, growing loan and deposit base, and strong credit performance help sustain its profitability. Moreover, its operational efficiency continues to cushion its bottom line, supporting higher dividend payments.
Overall, the bank’s high-quality earnings base positions it well to consistently pay and increase its dividend in future years.
