Some companies reward shareholders by returning a portion of their profits as dividends. However, since dividends are not guaranteed, investors should be selective and focus on well-established businesses with strong, predictable cash flows. In the current low-interest-rate environment, such companies can provide stable and attractive passive income while helping reduce overall portfolio volatility through their consistent payouts. Additionally, reinvesting these dividends can significantly enhance long-term returns. With this in mind, here are three top dividend stocks worth considering for more substantial passive income.
Enbridge
Enbridge (TSX:ENB) is a diversified energy infrastructure company with oil and natural gas transportation networks across North America, natural gas utility operations in the United States, and 41 renewable energy facilities. With most of its earnings supported by regulated assets and long-term contracts – and shielded mainly from commodity price volatility – the company generates stable and predictable cash flows. This strength has enabled Enbridge to deliver 70 consecutive years of dividends and increase its payout at an annualized rate of 9% since 1995. It also offers a compelling dividend yield of 5.6%.
Moreover, the Calgary-based company is expanding its rate base through its secured capital investment of $35 billion. The company has planned to invest around $9 billion to $10 billion annually to fund these projects. Amid these expansions, the company expects its EPS (earnings per share) and discounted cash flows/share to grow in the mid-single digits for the remainder of this decade. Furthermore, management also expects to return $40–$45 billion to shareholders over the next five years, making it an ideal long-term buy for income-seeking investors.
Telus
Another top dividend stock I’m bullish on is Telus (TSX:T), which currently offers a strong forward dividend yield of 8.2%. Telecom companies benefit from stable cash flows driven by recurring revenue streams, enabling them to deliver steady dividend growth. Telus has increased its dividend 29 times since launching its multi-year dividend growth program in May 2011.
Demand for telecom services continues to rise amid the digital transformation of consumer and business activities, the expansion of remote and hybrid work, and the growth of e-learning – all of which support greater usage of Telus’s offerings. The company is also investing heavily in its 5G and broadband networks, developing AI-focused data centres, and advancing several technology initiatives as part of its $70 billion, five-year capital plan.
Given these expansion efforts and its solid underlying business, management expects to raise dividends by 3–8% annually from 2026 to 2028. With these growth drivers in place, Telus appears to be an attractive buy at current levels.
Bank of Nova Scotia
My final pick is Bank of Nova Scotia (TSX:BNS), which has paid uninterrupted dividends since 1833. The bank offers a wide range of financial services across more than 50 countries, providing diversified revenue streams and helping it generate stable cash flows, regardless of broader market conditions. Backed by this strength, Scotiabank has increased its dividend at an annualized rate of 4.9% over the past decade and currently provides an attractive yield of 4.7%.
Moreover, the company has been refocusing its strategy by expanding its presence in the lower-risk North American market while scaling back less profitable or higher-risk operations in Latin America. By directing more resources toward higher-return opportunities, it aims to streamline operations and improve overall profitability. Additionally, the Bank of Canada’s 25-basis-point rate cut last month could boost credit demand, further supporting BNS’s performance. Given its improving outlook, I believe BNS is well-positioned to continue rewarding shareholders with attractive dividends.
