Many companies listed on the TSX pay dividends, but only a few have never cut their payouts. These are large-cap companies with well-established businesses and resilient earnings base. Furthermore, their strong dividend distribution is supported by solid fundamentals, sustainable payouts, and a commitment to enhancing shareholder value.
In this context, here are three Canadian stocks that have never cut their payouts, even during economic downturns, making them top choices for generating passive income.
Fortis
Fortis (TSX:FTS) is a top Canadian dividend stock that has never cut its payouts. The electric utility company’s defensive business model and regulated cash flows enable it to pay and increase its dividends regardless of economic cycles. Furthermore, Fortis primarily focuses on energy transmission and distribution, which remains insulated from the risks associated with power generation, thereby adding stability.
This blue-chip company has uninterruptedly raised its dividend for 52 years. Moreover, it remains well-positioned to maintain its dividend-growth streak.
Fortis has unveiled a $28.8 billion capital-investment plan, aimed at modernizing and expanding its energy infrastructure. Management expects this to boost Fortis’s rate base by about 7% annually through 2030, laying the foundation for continued earnings and dividend growth.
Fortis is guiding for 4–6% annual dividend increases through 2030, offering a steady income stream that keeps pace with inflation. Adding to the company’s long-term potential is the rising demand for electricity, driven by data centres, manufacturing expansion, and the mining sector. These trends should provide Fortis with new growth opportunities in the years ahead.
Enbridge
Enbridge (TSX:ENB) is one of the most reliable Canadian dividend stocks. The energy transportation and distribution company has consistently raised its dividend since 1995, reflecting the resilience of its payouts. While Enbridge has raised its dividend across every market crash in the last 30 years, it also offers a high yield of approximately 5.7%.
Looking ahead, its stable, low-risk business model, large scale, diverse revenue streams, and disciplined capital allocation provide a solid base for distributable cash flow (DCF), supporting higher payouts. Enbridge’s core business will continue to benefit from long-term, regulated contracts and power-purchase agreements. Moreover, Enbridge’s extensive network of pipelines and energy infrastructure connects major supply and demand hubs, resulting in high utilization and supporting its payouts.
The company’s management expects to continue growing the dividend at a mid-single-digit rate in the medium term, with plans to distribute between $40 billion and $45 billion in dividends over the next five years. Enbridge’s growing utilities and renewable power portfolio position it well for continued growth. The company will further benefit from a surge in renewable power demand, driven by the expansion of data centres. In short, Enbridge is a no-brainer for income investors.
TC Energy
TC Energy (TSX:TRP) is another attractive Canadian dividend stock to generate worry-free income. This energy infrastructure company transports natural gas and holds strategic, low-risk investments in power generation. Its vast North American pipeline network connects leading gas supplies to high-demand markets across Canada, the U.S., and Mexico, ensuring consistently high utilization of its system.
As most of TC Energy’s earnings come from regulated or take-or-pay contracts, the company remains insulated from commodity price swings and generates solid earnings and cash flow. Thanks to high-quality earnings, this energy infrastructure company has consistently increased its dividend for 25 consecutive years. It currently pays $0.85 per share in quarterly dividends and has the potential to increase its dividends further in the coming years.
TC Energy’s management targets 3-5% annual dividend growth, supported by multi-billion-dollar capital projects, which will expand its contracted and regulated asset base. Furthermore, the rising global energy demand, LNG expansion, and the shift toward cleaner energy provide a solid foundation for future growth. Overall, TC Energy is a dependable income stock and offers a decent yield of 4.7%.
