While Canadian equity markets have shown strength in recent months, worries about potential structural economic damage from the trade war and persistent inflation remain. For investors concerned about the uncertain economic outlook, the following four dependable Canadian dividend stocks — each offering yields above 5% — could help strengthen their portfolio.
Source: Getty Images
Enbridge
Enbridge (TSX:ENB) is a diversified energy infrastructure company that derives about 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from regulated assets and long-term contracts. With minimal exposure to commodity price fluctuations and roughly 80% of its adjusted EBITDA linked to inflation, the company’s financial performance remains resilient to economic cycles and market volatility, delivering stable and predictable cash flows.
Backed by its strong cash flows, Enbridge has paid uninterrupted dividends for 70 consecutive years and has raised its payout at an impressive annualized rate of 9% since 1995. Moreover, the company has identified approximately $50 billion in growth opportunities and intends to invest $9 billion to $10 billion annually to expand its asset base and capitalize on these opportunities. Supported by this robust growth pipeline, the management anticipates its adjusted EBITDA and earnings per share (EPS) to rise at a mid-single-digit rate over the medium term.
Given its healthy growth prospects and improving financial position, Enbridge, which currently offers a forward dividend yield of 5.8%, is well-positioned to sustain dividend growth in the years ahead.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is another reliable dividend stock I am betting on, thanks to its healthy cash flows and consistent dividend growth. With its diversified and balanced asset base, efficient operations, and modest capital reinvestment needs, the company enjoys a low breakeven point, enabling it to generate strong cash flows. Driven by its strong cash flows, the company has increased its dividend at an impressive annualized rate of 21% over the past 25 years. It currently offers an attractive forward dividend yield of 5.24%.
Moreover, CNQ is strengthening its production capabilities through both organic growth and strategic acquisitions. It plans to drill 182 net primary heavy crude multilateral wells this year. Given its extensive, low-risk, high-value reserves, these expansions could boost both its top and bottom lines. Therefore, I believe CNQ is well-positioned to sustain its dividend growth, making it an attractive investment.
Telus
Another reliable dividend stock to consider is Telus (TSX:T), one of Canada’s leading telecom companies. The demand for telecommunication services has been growing amid the rising digitization of business processes and the growth of remote work and e-learning. Amid growing demand, the company plans to expand its 5G and broadband infrastructure through its $70 billion capital investment plan for the remainder of this decade. These expansions could expand its customer base and increase the average revenue per user, thereby enhancing its financial performance.
Additionally, Telus’s healthcare segment continues to post strong financial performance, driven by strategic investments, innovative product offerings, and an expanded sales network. Along with its healthy growth prospects, its strong liquidity of $6.1 billion makes its future dividend payouts safer. Meanwhile, Telus has raised its dividend 28 times since May 2011 and currently offers an attractive forward dividend yield of 8.1%.
SmartCentres Real Estate Investment Trust
Real estate investment trusts (REITs) are required to distribute approximately 90% of their after-tax income to shareholders, making them an ideal investment for income-seeking investors. Therefore, I have chosen SmartCentres Real Estate Investment Trust (TSX:SRU.UN) as my final pick. Given its strategically located 197 properties across Canada and a solid tenant base, the company enjoys a healthy occupancy rate, which stood at 98.6% as of the end of the second quarter of fiscal 2025.
Moreover, the Toronto-based REIT, which offers an attractive dividend yield of 6.97%, is expanding its footprint with 58.9 million square feet of approved development projects. Of these approvals, around 0.8 million square feet of properties are under construction. In addition to its expansion plans, rising rental income supported by improving customer traffic and a solid tenant mix can drive SmartCentres’s financial growth in the coming years. Given its reliable cash flows and solid growth outlook, the company appears well-positioned to maintain robust dividend payments in the years to come.
