Some companies distribute a portion of their profits to shareholders as dividends. Businesses that consistently pay dividends are often managed more efficiently, as they must maintain steady cash flows to support these payouts. Moreover, investors can reinvest dividends to compound their wealth and generate superior long-term returns. Historically, dividend-paying stocks have outperformed their non-dividend counterparts.
Against this backdrop, let’s explore three top Canadian dividend stocks that can help build long-term wealth.
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TC Energy
TC Energy (TSX:TRP) is an energy infrastructure company that transports natural gas across North America under a tolling framework. Additionally, it operates several power-producing facilities with a total capacity of 4.65 gigawatts, selling the power produced from these facilities through power-purchase agreements (PPAs) and long-term, fixed-price contracts. Therefore, the company’s financials are less exposed to market volatility, allowing it to generate stable and predictable cash flows. Backed by these strong cash flows, the company has raised its dividend for 25 straight years and currently offers a forward yield of 4.7%.
Moreover, the Calgary-based company plans to invest around $6–$7 billion annually through 2026, expanding its asset base. Having put $5.8 billion of projects into service, the company expects to put around $8.5 billion of projects into service this year. Driven by these expansions, the company expects its 2025 adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) to be between $10.8 billion and $11 billion, with the midpoint representing an 8.5% increase from the previous year. Amid these growth initiatives, I believe TC Energy is well-equipped to sustain its healthy dividend payments, making it an attractive investment.
Fortis
Another strong dividend stock with significant wealth-building potential is Fortis (TSX:FTS), which operates 10 regulated utility businesses serving 3.5 million customers. With most of its assets regulated and roughly 93% tied to low-risk transmission and distribution, the company’s financials remain well-protected against economic cycles and market volatility.
Supported by these healthy financials, the company has delivered an average total shareholders’ return of 9.6% for the previous 20 years. Moreover, the company has consistently raised its dividend for 51 straight years and currently offers a forward yield of 3.7%.
Additionally, Fortis is expanding its asset base with its $26 billion capital investment plan that could grow its rate base to $53 billion by the end of 2029, marking an annualized growth of 6.5%. In addition to these expansions, favourable customer rate revisions and improving operating efficiency could strengthen its financials. Meanwhile, management remains confident in delivering 4–6% annual dividend growth through 2029.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is an oil and natural gas producer that operates a diversified and balanced asset base. Its large, high-quality reserves, low reinvestment needs, and efficient operations have lowered its breakeven point, enhancing both profitability and cash flows. Supported by its robust financial performance, the company has grown its dividend at a 21% annualized rate over the last 25 years and now provides a compelling forward yield of 5.2%.
Moreover, CNQ boasts substantial reserves, with a proven reserve life index of 32 years, predominantly containing high-value petroleum products. The company has planned to drill 182 net primary heavy crude oil multilateral wells this year. Along with these organic growth initiatives, the company’s continued acquisitions could boost its production. Meanwhile, the midpoint of the company’s 2025 production guidance represents a 12.4% increase from the previous year. With growing production and a lower breakeven threshold, the company is well-positioned to deliver robust financial results and extend its track record of dividend growth.
