If you’re seeking stress-free income for the next 10 years, consider top TSX dividend stocks with sustainable payouts for your portfolio. While it’s true that no stock is entirely risk-free, many Canadian stocks are leading dividend payers with a strong history of consistent dividend growth and reliable payouts. Furthermore, their resilient earnings base and commitment to enhancing shareholder value make them highly attractive dividend stocks for passive income.
Against this background, here are dividend stocks to buy and hold for the next decade for their ultra-safe payouts.
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Ultra-safe dividend stock #1: Fortis
Fortis (TSX: FTS) is one of the most reliable dividend-paying companies in Canada. This electric utility company generates predictable cash flow in all market conditions thanks to its rate-regulated asset base. This supports its payouts. Moreover, it primarily focused on energy transmission and distribution, which adds stability, insulating the business from swings in commodity prices.
Fortis’s reliable earnings base has enabled the company to pay and increase its dividend for decades. This utility company has increased its dividend for 52 consecutive years. Moreover, this dividend-growth streak will likely sustain. Fortis’s $28.8 billion capital plan is expected to expand its regulated asset base to $57.9 billion by 2030, representing a healthy 7% compound annual growth rate (CAGR). As this asset base grows, so should earnings, providing Fortis with a solid foundation to continue increasing its dividend by an estimated 4% to 6% annually.
Overall, Fortis’s resilient earnings base, growing rate base, and visibility over future dividend growth make it a top TSX dividend stock to buy and hold for the next decade.
Ultra-safe dividend stock #2: Enbridge
Enbridge (TSX: ENB) is one of Canada’s most reliable income plays, thanks to its long record of steady dividend growth and its ability to generate resilient distributable cash flow (DCF). This energy transportation company has increased its annual payout every year since 1995, supported by more than 200 diversified assets that help smooth results through economic or commodity price cycles.
Moreover, most of Enbridge’s revenue comes from regulated or take-or-pay contracts and long-term power-purchase agreements. This adds stability to its earnings base.
Its extensive North American pipeline and utility network keeps utilization rates high. Moreover, its growing renewable energy portfolio and opportunities stemming from data centre expansion augur well for growth. Management targets mid-single-digit dividend growth over the coming years and plans to return $40-$45 billion to shareholders within the next five years. While Enbridge’s payouts are durable, it also offers an attractive yield of 5.6%.
Ultra-safe dividend stock #3: Bank of Montreal
Leading Canadian banks are renowned for paying dividends for over a century, making them reliable investments for passive income. One among them is Bank of Montreal (TSX: BMO), which stands out for its attractive dividend history. The financial services giant has paid dividends for 196 years. This is the longest ongoing distribution record by any Canadian company.
The bank’s solid dividend payment history reflects the stability of its earnings base and the resilience of its payouts. In addition, BMO has increased its dividend at a CAGR of 5.4% in the last 15 years.
The financial service company’s diverse revenue streams, solid deposit base, growing share in the personal banking space, high‐return wealth business, strong credit quality, and operational efficiency are likely to drive its earnings. This will enable it to pay and increase its dividend in the years to come.
