The 3 Best Dividend Stocks for Canadians in 2025

Hunting for dependable TSX dividend winners in 2025? Waste Connections, Fortis, and Telus combine steady cash flow, dividend growth, and defensive businesses.

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Key Points

  • Waste Connections delivers steady cash and roughly 10% annual dividend growth, even with a low current yield.
  • Fortis’ regulated utilities and $25B capex plan support predictable ~5% annual dividend growth and a 50-year raise streak.
  • Telus pairs a high ~8% yield with growth from Telus Health and Telus International, supporting continued dividend increases.

If you’re on the hunt for the best dividend stocks on the TSX for 2025, it can be overwhelming. But there are a few key factors to watch for. The best dividend stocks in Canada offer investors a rare combination of stability, income, and long-term growth. These are qualities that make them ideal for building wealth through any market cycle. So let’s look at three top options on the TSX today.

WCN

Waste Connections (TSX:WCN) has quietly become one of the most reliable dividend stocks in Canada, though perhaps with a low yield. The dividend stock operates across Canada and the United States, collecting, processing, and recycling non-hazardous waste for municipalities, industrial clients, and businesses. This focus allows it to maintain higher margins and avoid costly bidding wars. The dividend stock’s recurring revenue contracts and high customer retention rates exceeding 90% create a stream of cash that’s both stable and expanding.

WCN’s dividend track record makes it a standout for 2025. It grew its payout by roughly 10% per year over the last five years, all while maintaining a conservative payout ratio, currently around 52%. The current yield of 0.85% might not look high, but it’s supported by a business that consistently increases earnings and dividends.

In 2025, WCN’s combination of recession-proof demand, strong pricing power, and disciplined execution makes it a rare gem. It’s a dividend stock that quietly compounds, rewarding shareholders not just with dividends but also with steady capital appreciation. For Canadians seeking a dependable, long-term dividend stock well into the future, WCN is as solid as it gets.

FTS

Fortis (TSX:FTS) has long been regarded as one of the most dependable dividend stocks in Canada, and for good reason. Fortis operates in one of the most stable industries imaginable of regulated utilities, supplying electricity and natural gas to more than 3.5 million customers across Canada, the U.S., and the Caribbean. Its revenue is practically guaranteed because rates and returns are set by regulators, not by market forces. That predictability is why Fortis has been able to pay and increase its dividend for an astonishing 50 consecutive years.

What makes Fortis especially powerful for 2025 is its visibility on future growth. The dividend stock has a multi-year capital investment plan worth about $25 billion, focused on expanding and modernizing its energy grid, integrating renewable power, and strengthening reliability. As its rate base grows, so do earnings and, in turn, dividends. This built-in growth cycle gives Fortis a clear roadmap for annual dividend increases of roughly 5% through at least 2029.

The payout ratio sits around 73% at writing with a 3.6% dividend yield, leaving ample room for reinvestment while still rewarding shareholders. The dividend stock has a long history of prudent debt management, keeping financing costs in check even in a higher-rate environment.

T

Telus (TSX:T) combines the reliability of a defensive telecom business with the growth potential of cutting-edge technology investments. As one of Canada’s “Big Three” telecoms, Telus provides essential services like wireless connectivity, internet, and digital communication to millions of Canadians. No matter what happens in the broader economy, people and businesses still need data, phones, and broadband.

What separates Telus from its peers is its growth beyond traditional telecom. Telus aggressively diversified into technology-driven sectors like healthcare, agriculture, and artificial intelligence (AI). Its subsidiaries, of Telus Health and Telus International provide high-margin, scalable businesses that position Telus for sustained earnings and dividend growth long after the telecom market matures.

With a yield of roughly 8% at writing, it pays investors handsomely while continuing to grow that payout each year. The dividend stock has maintained a consistent dividend-growth policy, targeting increases of around 9% annually, supported by steady earnings and cash flow from its core wireless and internet operations.

Bottom line

These dividend stocks generate steady cash flow from essential services, allowing them to pay and grow dividends year after year. In fact, here is what $7,000 invested in each would bring in on the TSX today.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
WCN$231.4830$1.97$59.10Quarterly$6,944.40
FTS$71.6797$2.56$248.32Quarterly$6,950.00
T$20.76337$1.67$562.79Quarterly$6,992.00

Each of these dividend stocks reward patience with reliable income and inflation-beating dividend increases. All while offering the potential for share price appreciation over time, making them stellar options on the TSX today.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fortis and TELUS. The Motley Fool has a disclosure policy.

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