Dividend-paying stocks offer investors a reliable stream of passive income by returning a portion of their profits as dividends. Their resilient business models, steady cash flows, and consistent payout history also make them less sensitive to market fluctuations. Moreover, reinvesting dividends can accelerate wealth creation over time. Against this backdrop, here are three Canadian dividend stocks I find attractive right now.
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Enbridge
Enbridge (TSX:ENB) is a diversified energy company, operating pipeline networks, natural gas utility assets, and renewable energy production facilities. It earns around 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from regulated assets and long-term contracts, while approximately 80% is inflation-indexed. Therefore, the company enjoys reliable cash flows, enabling it to pay and raise its dividend consistently. It has paid dividends uninterruptedly for 70 years, while increasing its dividend at an annualized rate of 9% since 1995. Its forward dividend yield stands at a juicy 5.65% as of the September 10th closing price.
Moreover, the energy demand is rising amid population growth, rising living standards, and rapid industrialization, thereby driving the demand for Enbridge’s services. Meanwhile, the company has identified around $50 billion worth of growth opportunities and has planned to invest $9-$10 billion annually to expand its asset base. These growth initiatives could boost its financials in the coming years, thereby allowing it to continue raising its dividends in the coming years. The company’s management projects its EBITDA, EPS (earnings per share), and discounted cash flows per share to grow at a 5% CAGR (compound annual growth rate) in the medium term. Considering all these factors, I am bullish on Enbridge.
Telus
Another Canadian dividend stock that I am bullish on is Telus (TSX:T), due to its consistent dividend growth, high yield, and rising demand for telecommunication services amid the digitization of business processes, the increasing adoption of cloud-based solutions, and growth in remote work and learning. Supported by its reliable cash flows due to recurring revenue sources, the company has raised its dividends 28 times since May 2011 and currently offers an attractive forward dividend yield of 7.58%.
Moreover, Telus continues to expand its 5G coverage and broadband connectivity and has planned to invest $70 billion over the next five years. Its Telus Health segment is also growing at a healthier rate amid strategic investments, new product launches, and sales channel expansions. It is also working on selling a 49.9% stake in its wireless tower infrastructure business to La Caisse for $1.26 billion, with the management expecting to utilize the net proceeds to lower its leverage. The management is also hopeful of reducing its leverage ratio from 3.7 at the end of the second quarter to three by the end of 2027. Given its stable cash flows, healthy growth prospects, and improving financial position, I expect Telus to continue rewarding its shareholders with healthy yields.
Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS), with its outstanding record of uninterrupted dividend payments since 1833, is my last pick. It has also raised its dividend at an annualized rate of 4.9% for the previous 10 years and currently offers a healthy forward dividend yield of 4.98%. Moreover, the company reported an impressive third-quarter performance for fiscal 2025 last month, with its adjusted EPS growing by 15.3% to $1.88.
The strong performance from its International Banking, Global Wealth Management, and Global Banking and Markets segments boosted its financials. Its common equity tier-one ratio improved 10 basis points to 13.3% amid healthy internal capital generation. Additionally, the company continues to expand its business in the lower-risk, less volatile North American market, while scaling down its Latin American operations. Moreover, investors stand to benefit from the company’s share-repurchase initiative, which could remain in effect until May 2026. Considering its growth prospects and improving operating metrics, I expect BNS to continue paying its dividends at a healthier rate. With a quarterly dividend payout of $ 1.10 per share, its forward dividend yield stands at an attractive 4.97%.
