Stocks have inherent risks, but with a longer holding period, you can mitigate market fluctuations while benefiting from compounding returns. The TSX is approaching 150 years old since its incorporation and is doing great in 2025.
With solid fundamentals and healthy profit growth forecasts, now is the time to build an investment portfolio. However, everyone should own four Canadian dividend stocks to achieve long-term financial success. The top picks, all large-cap stocks, have delivered strong returns and are unlikely to disappoint prospective investors.
Financial services
Bank of Montreal (TSX:BMO) is not only the country’s oldest financial institution but is also the TSX’s dividend pioneer. BMO started sharing a portion of its earnings with shareholders in 1829. The share price is $180.48, with a corresponding dividend yield of 3.36%. Dividend longevity (196 years) is why this $128.95 billion bank is best for income-focused investors.
Energy
Enbridge (TSX:ENB) is a no-brainer buy if you want exposure to the lucrative but perennially volatile energy sector. The $152.4 billion energy infrastructure company boasts a diversified, utility-like business model. Its four core franchises have visible growth runways.
According to its president and CEO, Greg Ebel, Enbridge is in an unparalleled position to meet the increasing demand for conventional and new energy in North America and beyond. The businesses include Liquids Pipelines, Gas Transmission & Midstream, Gas Distribution & Storage, and Renewable Power.
The industry titan has been paying dividends for more than 70 years, not to mention 30 consecutive years of annual dividend increases. If you invest today, ENB trades at $69.43 per share and pays a 5.39% dividend.
Communications services
The communications services sector plays a significant role in modern society as people, businesses, and industries need constant connectivity. TELUS (TSX:T) is my preferred passive-income provider due to its 20-year dividend-growth streak.
Under its multi-year dividend-growth program, the guidance is annual dividend increases of 3% to 8% from 2026 to 2028. Moreover, management has intentions to target semi-annual dividend hikes. At $21.66 per share, current investors enjoy a 17.4% year-to-date gain on top of the hefty 7.61% dividend yield.
In the second quarter (Q2) of 2025, free cash flow (FCF) increased 11% year over year to $535 million versus Q2 2024. Doug French, executive vice president and chief financial officer of TELUS, said the FCF generated during the quarter underscores the company’s solid financial foundation. It can support sustainable growth and fund capital-allocation priorities.
Utilities
Fortis (TSX:FTS) is the fourth but not the least on my list. This top-tier utility stock is a dividend knight, boasting 51 consecutive years of dividend increases. The 3.51% yield is not the highest in the market, but you get peace of mind in exchange. You can purchase FTS at $70.42 per share.
The $35.3 billion company provides electric and natural gas utility services, with nine regulated utility companies in Canada, the U.S., and the Caribbean. Fortis commits to a 4% to 6% annual dividend growth through 2029. The new five-year $29 billion capital plan supports this target.
Get smart
The four Canadian dividend stocks for everyone are smart options for seasoned investors and beginners. Buy one or all, and you don’t have to sell the stocks anymore. The steady income streams could be for life, with a potential for capital growth.
