Many Canadian companies reward their shareholders with dividends, but only a few stand out for the stability and reliability of their distributions. While dividends are not 100% guaranteed or safe, a few Canadian companies have sustainable payouts, strong earnings, solid fundamentals, and a history of paying and increasing their dividends. Investing in such companies helps you to wake up every morning knowing that your dividends are safe with these stocks.
Against this background, here are the top dividend stocks whose payouts are relatively safe, helping you to earn worry-free income.
Enbridge stock
Enbridge (TSX:ENB) is one of the most reliable dividend-paying stocks on the TSX, backed by decades of uninterrupted dividend payments and growth. The energy transportation giant has consistently rewarded investors, raising its dividend every year since 1995. What makes Enbridge’s payouts reliable is its low-risk business model, steady earnings growth, and commitment to return higher cash to its shareholders.
With an extensive pipeline and energy infrastructure network across North America, the company operates with little exposure to commodity prices. About 98% of its earnings are secured through regulated returns or long-term contracts, ensuring steady cash flow regardless of market volatility. Moreover, Enbridge further strengthened its earnings base by acquiring three major U.S. natural gas utilities, while its diversified operations continue to support steady (discounted cash flow) DCF growth.
Currently, Enbridge pays a quarterly dividend of $0.943 per share, representing an attractive yield of 5.7%. Its diversified income streams, addition of three top-tier U.S. gas utilities, and low-risk commercial structure will help drive steady earnings DCF growth, supporting higher payouts.
Looking forward, Enbridge is well-positioned to benefit from rising energy demand, driven by data centre expansion and the global energy transition. Management plans to return between $40 and $45 billion to shareholders over the next five years. With expected mid-single-digit growth in earnings and DCF per share, Enbridge has a solid foundation to consistently pay and increase its dividend.
Fortis stock
Similar to Enbridge, Fortis (TSX:FTS) is another TSX stock that will ensure you wake up every morning knowing your dividends are safe. This leading electric and gas utility company operates a diversified, regulated business that generates low-risk and predictable cash flows and supports its dividend payments.
Thanks to its defensive business and steady earnings growth, Fortis raised its dividend for 51 consecutive years. At present, the utility company pays a quarterly dividend of $0.615 per share, offering investors a yield of about 3.5%.
Fortis’s ability to maintain and expand its future dividend rests on its solid capital investment strategy. The utility holding company is committed to growing its regulated rate base, which ensures steady earnings over time and provides a strong platform for future dividend increases. Management has expressed confidence in sustaining this momentum, with plans to grow dividends at an annual rate of 4% to 6% through 2029.
Fortis is well-positioned to benefit from the growing power demand. The energy delivery leader plans to invest about $26 billion over the next five years. These funds will go toward modernizing infrastructure and supporting the integration of clean energy sources. By 2029, the company expects its regulated rate base to grow to $53 billion, representing a compound annual growth rate of about 6.5%. This expansion will drive long-term earnings growth, which in turn will support its dividend payments.
