A long-term portfolio should have a few dividend stocks for steady income and growth. But while plenty of TSX stocks pay dividends, only a few have consistently paid and even increased their payouts. The reliability of their distributions makes them the best dividend stocks to buy and hold for decades.
Against this backdrop, here are some of the best dividend stocks I’d buy right now.
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SmartCentres REIT
With its high yield of about 6.9% and reliable monthly payouts, SmartCentres REIT (TSX:SRU.UN) is one of the best dividend stocks to buy right now. The real estate investment trust (REIT) owns 195 well-located properties that enjoy a high occupancy rate of about 98.4%, reflecting resilient leasing demand and the ability to retain tenants. Notably, its prime retail tenants add stability to its operation, driving net operating income and supporting its payouts.
Looking ahead, a high rent collection rate and steady increase in rents will support its growth. Beyond its retail strength, SmartCentres is expanding into mixed-use developments, creating additional recurring revenue streams. Further, with more than three-quarters of its landbank still undeveloped, the REIT holds significant long-term growth potential.
Telus
Telus (TSX:T) is among the best dividend stocks listed on the TSX. Notably, the wireless communication service provider has increased its dividend 27 times since 2011, reflecting its ability to deliver profitable growth. Moreover, it has returned about $21 billion in dividends since 2004. Telus’s payout ratio of 60–75% of free cash flow is sustainable in the long term. At the same time, it offers a high yield of over 7%, making it a compelling income stock.
Telus’s diversified revenue streams, low customer churn rate, focus on margin-accretive customer acquisitions, cost-saving initiatives, and investments in fibre and 5G infrastructure will drive its earnings and dividend payments. The telecom giant plans to increase its annual dividend by 3–8% through 2028, offering visibility over its future payouts.
Enbridge
Enbridge (TSX:ENB) is a no-brainer for Canadian investors looking for the best dividend stocks. The company has increased its dividend every year since 1995, reflecting the resiliency of its payouts and ability to grow its earnings and distributable cash flows. Currently, ENB stock pays a quarterly dividend of $0.9425 per share, translating into an attractive 5.8% yield.
Enbridge’s cash flow is insulated from volatile commodity prices, as nearly all its earnings come from regulated returns and long-term contracts. This provides investors with stable, predictable income regardless of market swings. With over 98% of EBITDA tied to these steady sources, the company is well-positioned to sustain its payouts. Enbridge also balances growth and its distributions through a disciplined capital allocation strategy, maintaining a payout ratio of 60%–70% of DCF.
Enbridge aims to grow its dividend at a steady mid-single-digit pace over the medium term and return $40 to $45 billion to shareholders within the next five years.
Fortis
This list of best dividend stocks will not be complete without Fortis (TSX:FTS). The electric and gas utility company runs a regulated, low-risk business that generates predictable cash flow, supporting its consistent quarterly payouts. With operations spanning 10 regulated utilities across North America, Fortis focuses on transmission and distribution rather than power generation, shielding it from higher-risk segments of the power market.
Its low-risk operating structure and solid cash flow have enabled Fortis to raise its dividend for an impressive 51 straight years, and the stock currently yields about 3.5%. Management aims to expand its rate base at a CAGR of 6.5%, which will drive its earnings and dividend payments. Fortis forecasts 4–6% annual growth in its dividend during that period. Further, its investments in infrastructure modernization, the clean energy transition, and rising demand from data centres and heavy industry augur well for growth.
