Many Canadian companies pay dividends, but only a few don’t cut their payouts, thanks to their strong fundamentals and commitment to reward shareholders. Most of these steady dividend payers are large-cap companies with established businesses that have proven their resilience through market cycles and economic downturns. Their consistent ability to generate stable earnings, even when conditions turn uncertain, enables them to maintain and often grow their dividends over time.
Within this context, here are three Canadian stocks that don’t cut their payouts, making them top bets for passive income.
Dividend stock #1: Fortis
Canada’s leading electric and gas utility company, Fortis (TSX:FTS), is one of the most reliable dividend stocks. Fortis has never cut its payouts and increased its dividend for 51 consecutive years. Its defensive model and regulated earnings base support higher dividend payments in all market conditions.
Fortis’s rate-regulated assets generate predictable and growing cash flow, which drives its quarterly distributions. Moreover, 93% of its assets are in energy transmission and distribution, remaining shielded from market volatility and generation-related risks. This adds stability to the operations of this blue-chip company.
The utility company’s $26 billion capital plan will expand its rate base at a compound annual growth rate (CAGR) of 6.5% through 2029. This, in turn, will expand its rate base and support higher dividend payments. Notably, Fortis projects a 4% to 6% annual increase in its dividend through 2029.
Besides its low-risk earnings base, Fortis is also likely to benefit from growing electricity demand led by the expansion of data centres and manufacturing. Overall, Fortis will continue to increase its dividend in the coming years, making it a worry-free income stock.
Dividend stock #2: Enbridge
Enbridge (TSX:ENB) is one of those Canadian stocks that don’t cut their payouts. The energy transportation company has increased its dividend for 30 consecutive years, maintaining payouts through every market downturn since 1995. Moreover, it has been paying dividends for over 70 years. It currently offers an attractive yield of 5.5% and maintains a sustainable payout ratio of 60-70% of its distributable cash flow.
Enbridge’s extensive network of pipelines and energy infrastructure assets links major supply and demand hubs across North America. This vast system enjoys high utilization rates, providing steady and predictable revenue streams. In fact, about 80% of Enbridge’s earnings before interest, taxes, depreciation, and amortization (EBITDA) stems from assets backed by either regulated returns or revenue mechanisms designed to protect cash flow. Furthermore, 98% of its EBITDA is derived from regulated or long-term, take-or-pay contracts, providing the company with a reliable financial base that supports both its operations and dividends.
Looking ahead, Enbridge expanded its low-risk earnings base through the acquisition of three gas utilities. Meanwhile, rising electricity demand and opportunities for energy transition bode well for growth. Overall, Enbridge is well-positioned to maintain its dividend-growth streak.
Dividend stock #3: Canadian National Railway
Canadian National Railway (TSX:CNR) is another top TSX stock that has never cut its dividend, making it a compelling investment for generating passive income. Its vast rail network plays a significant role in Canada’s supply chain, making its services essential to the economy. Moreover, it witnesses consistent demand for its services, which supports its earnings and dividend payouts.
The company has increased its dividend for 29 straight years, driven by its resilient business model, strong operational efficiency, and a long-term focus on growth.
Looking ahead, Canadian National Railway’s management is targeting a 10-15% increase in adjusted earnings per share (EPS) for 2025, followed by a high single-digit growth into 2026. These projections are supported by strategic expansion initiatives, diversification across sectors, and ongoing efforts to improve efficiency throughout its operations. In short, CNR is a reliable stock to buy and hold for decades of dividend income.
