When the market gets choppy, dividend stocks are often a safe harbour. But not all dividend stocks are created equal. Some companies have a long history of not just paying, but raising dividends through economic cycles. These are the dividend knights: mature, dependable firms with a proven track record. And when these trade at bargain prices, it’s usually a rare opportunity.
Right now, three Canadian dividend knights stand out: Royal Bank of Canada (TSX:RY), TELUS (TSX:T), and Enbridge (TSX:ENB). Let’s take a closer look at why these blue-chip dividend stocks could be worth buying today.
RBC
Royal Bank is Canada’s largest bank and a pillar of stability in the financial sector. And now, the dividend stock is back, far beyond its 2022 highs and surging. Even so, it holds a massive dividend now at 3.4% or $6.16 annually. So, while investors might be concerned about loan loss provisions, slow mortgage growth, and the broader economy, Royal Bank continues to deliver strong results.
In the second quarter (Q2) of 2025, it reported net income of $4.4 billion, up from 11% the year before. Its capital markets segment bounced back, wealth management held steady, and Canadian banking remained the core engine. The company’s common equity tier-one ratio, a key measure of financial strength, stood at 13.2%, well above regulatory minimums. Royal Bank has raised its dividend every year since 2011 and remains well-positioned to keep doing so. At around 14.5 times forward earnings, it’s a bargain for long-term investors.
TELUS
Next up is TELUS, the telecom stock that’s quietly become one of the most shareholder-friendly companies in the country. TELUS offers one of the highest dividend yields among its peers, currently around 7.4%. That’s come partly because the dividend stock is down over 35% from its 2022 peak. Higher interest rates have taken a toll on capital-intensive companies like telecoms, and TELUS hasn’t been spared.
But the business remains fundamentally solid. In Q1 2025, TELUS posted revenue of $5.1 billion, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew by 4%. The dividend stock added 218,000 new customer connections, including growth in mobile and home internet. The dividend has been increased annually for over a decade and is supported by strong recurring revenue. With a long-term view, this is the kind of discounted dividend knight that’s hard to pass up.
Enbridge
Lastly, we come to Enbridge, the energy infrastructure giant that’s practically synonymous with steady dividends. Enbridge has increased its dividend every year for nearly three decades. Today, it offers a yield of 6.1%, a solid yield for a solid dividend stock. The market has been cautious about the company’s debt and its exposure to oil and gas, but its results continue to impress.
In Q1 2025, Enbridge reported distributable cash flow of $3.8 billion, up 9% year over year. It reaffirmed full-year guidance and maintained a payout ratio within its target range. Furthermore, the company has secured $28 billion in its backlog. The dividend stock’s growth plan includes natural gas expansion and renewables, offering a future-focused portfolio even as it keeps paying today’s generous dividend.
Bottom line
Of course, no investment is risk-free. Banks are exposed to credit cycles, telecoms face regulatory hurdles, and pipelines are tied to commodity flows and politics. But these three dividend stocks have managed through decades of change and still deliver shareholder value. Better yet, they’re trading at valuable prices. And right now, a $7,000 investment in each stock would bring in $1,179.46 each year!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RY | $182.00 | 38 | $6.16 | $234.08 | Quarterly | $6,916.00 |
| T | $22.50 | 311 | $1.67 | $519.37 | Quarterly | $6,997.50 |
| ENB | $61.75 | 113 | $3.77 | $426.01 | Quarterly | $6,978.75 |
Royal Bank, TELUS, and Enbridge all boast long dividend track records and dominant positions in their industries. With high yields and lower-than-usual valuations, each looks like a strong candidate for investors seeking passive income and long-term growth. Bargain-priced dividend knights don’t come around often, and when they do, they’re worth considering.
