Many TSX stocks reward their shareholders with dividends. However, only a select group has consistently managed to not only maintain these payouts but also increase them year after year. This ability to sustain and grow dividends over time is what makes them a no-brainer investment for income investors.
Against this backdrop, here are seven no-brainer dividend stocks to buy right now.
Fortis stock
Fortis (TSX:FTS) is a dividend powerhouse, sporting 51 consecutive years of distribution increases. Its diversified, rate-regulated utility assets generate predictable cash flow, supporting consistent dividend payments and growth. Fortis focuses on energy transmission and distribution, a segment that tends to be more resilient to market volatility.
Looking ahead, Fortis’s rate base, which is a key driver of earnings, is projected to expand at a compound annual growth rate (CAGR) of 6.5% through 2025. This expansion is expected to drive steady earnings growth, which management anticipates will translate into annual dividend increases in the range of 4% to 6% through 2029.
Enbridge stock
Enbridge (TSX:ENB) is a reliable dividend stock, having paid uninterrupted dividends since 1953 and increased them for 30 consecutive years. Backed by long-term contracts, regulated frameworks, and low-risk agreements, its earnings remain steady, supporting its payouts. Further, its high asset utilization rate and growing utility base drive its distributable cash flow (DCF) and earnings.
Enbridge is emphasizing low-cost expansions, operational efficiencies, and diversification into both traditional and renewable energy. This will drive its future payouts. Further, its secured $28 billion capital program augurs well for growth. Enbridge’s management anticipates mid-single-digit earnings and cash flow growth in the medium term, supporting consistent dividend hikes while reinvesting for sustainable long-term returns.
Bank of Montreal stock
Canadian financial services giant Bank of Montreal (TSX:BMO) is a no-brainer dividend stock to buy right now. It has a dividend track record that’s hard to beat. For an incredible 196 years, the bank has been rewarding its shareholders with uninterrupted payouts, the longest streak of any TSX-listed stock. Moreover, BMO’s dividend grew at a CAGR of 5.4% in the last 15 years, reflecting its commitment to delivering reliable and steadily increasing income.
Its payouts are backed by a well-diversified revenue stream, solid credit performance, and a sharp focus on operating efficiency. Its balance sheet remains strong, supported by rising deposits and a steadily expanding loan portfolio. With these fundamentals in place, BMO is well-positioned to keep raising its dividend in the years ahead, offering investors a dependable and growing source of passive income.
The final four dividend stocks you can’t afford to miss
Besides Fortis, Enbridge, and Bank of Montreal, several other Canadian blue-chip companies, including Canadian National Railway (TSX:CNR), Canadian Natural Resources (TSX:CNQ), TC Energy (TSX:TRP), and Telus (TSX:T), offer worry-free dividends.
Canadian National Railway has raised its dividend for 29 consecutive years. Its focus on network expansion, diversification across multiple sectors, and ongoing improvements in operational efficiency all work in its favour, paving the way for steady dividend growth in the future.
Canadian Natural Resources has an equally impressive record, with 25 straight years of dividend increases. Over that period, its dividend grew at a CAGR of 21%. Its diversified portfolio of long-life, low-decline assets positions it well to sustain and grow its dividends.
TC Energy has been boosting its dividend every year since 2000. Its portfolio of highly regulated assets and long-term contracts generates stable cash flows, providing a strong foundation for ongoing payouts. Looking ahead, TC Energy aims to grow its annual dividend by 3–5% over the long term.
Meanwhile, Telus has a robust track record of rewarding shareholders. Since 2004, it has returned about $21 billion in dividends, and since 2011, it has raised its payout 27 times. The telecom giant is targeting annual dividend growth of 3–8% through 2028, making it an appealing option.
The bottom line
These large, well-established companies represent a diverse mix of industries and business models and have a strong commitment to returning value to shareholders. For investors aiming to build a resilient, income-generating portfolio, adding these seven names could provide both peace of mind and steady income.
