The best dividend stocks can sound like a dream can’t they? You get high income, safe income, growing income – all from companies that usually have been paying out dividends over and over for a lifetime. But often times one thing is missing: value.
That’s why today we’re going to look at the best dividend stocks for 2025, and the main ingredient? These all still look valuable right now. So let’s get into it.
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ENB
Enbridge (TSX:ENB) has long been a stellar option for dividends and income. The company operates a mixture of liquids pipelines, gas transmission and utilities, and more recently renewables and low carbon assets. Much of this is supported by rate-regulated or long-term contracts.
Right now, Enbridge stock is coming off strong second quarter results. The company reported record earnings before interest, taxes, depreciation and amortization (EBITDA), and reaffirmed its guidance for 2025. Adjusted earnings per share (EPS) was up to $0.65, and the company also declared a $0.94 quarterly dividend.
All together, Enbridge remains a strong contender among dividend stocks in Canada. That’s especially true for investors looking for yield from energy and infrastructure exposure with relatively stable cash flow. However, it’s not immune to financing and capital cost pressure, which has brought shares down in the past.
FSZ
Now let’s look at Fiera Capital (TSX:FSZ), an asset manager that can leverage assets under management and organic growth if markets and inflows are favourable. This has occurred in the past as well, with FSZ benefitting from higher management fees and performance fees.
The company is also coming off strong second quarter results. While operating at a net loss in earnings, total revenue reached $163 million, with $160.5 billion in assets under management. Adjusted EBITDA also climbed to a 28% margin, with free cash flow at $75.3 million.
The last point is what supports the growing dividend, currently coming in at $0.108 per share. Meanwhile, the company repurchased 1.1 million shares, reinforcing that the dividend stock believes there’s a strong future ahead. Now yielding 6.8%, FSZ stock could really surge when growth in the markets takes off.
BMO
Finally, we have Bank of Montreal (TSX:BMO), one of the solid Big Six banks in Canada offering strong top line growth. This is across all its segments, including banking, wealth, and capital markets. The company holds a solid capital position with a CET1 ratio of 13.5!.
Meanwhile, third quarter results came in strong, with reported net income up 25% year over year, and EPS reaching $3.23. Furthermore, return on equity was (ROE) reported at 11.6%. The company also declared an annual dividend of $6.52 and intends to cancel up to 30 million common shares.
BMO stock is therefore one of the stronger contenders among Canadian banks for a balance of dividends and growth. Recent quarterly earnings show strength, capital discipline and shareholder returns. For those who want a solid mix, then this could be the ideal dividend stock.
Bottom line
All together, these three could create a strong dividend portfolio. Investors can get the high yield and diversified energy exposure from Enbridge, strong earnings momentum from BMO, and potential upside from Fiera. Yet as always, discuss any investment decisions with your financial advisor.
