Dividend-paying companies can be an investor’s best ally, especially for those seeking both income and long-term growth. Beyond the regular cash flow they provide, reinvesting those dividends allows you to gradually accumulate more shares, an effect that compounds over time and meaningfully boosts overall returns. Add in the natural price appreciation that strong companies tend to generate, and the total return potential becomes even more compelling.
Fortunately, many stocks on the TSX offer reliable dividends. These companies are supported by solid fundamentals, durable business models, and a strong earnings base, enabling them to maintain and potentially increase their payouts year after year. Their stability, combined with the potential for steady capital appreciation, makes them well-suited for investors looking to build wealth with lower volatility.
With this background, here are three dividend stocks that I think belong in everyone’s portfolio.
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Canadian dividend stock #1
Fortis (TSX:FTS) is a compelling dividend stock that belongs in every portfolio for steady income and growth. This utility company focuses on energy transmission and distribution, which reduces exposure to risks associated with power generation and fluctuations in commodity prices. Furthermore, its rate-regulated business enables it to generate predictable and growing cash flows, which have powered 52 consecutive years of dividend increases.
The company’s defensive business model and strong balance sheet position it well for continued dividend growth. A $ 28.8 billion capital plan is set to expand its regulated asset base, strengthening its low-risk earnings profile while supporting future cash flow growth. Rising electricity demand from data centres, mining operations, and manufacturing also provides a meaningful tailwind for both earnings and its share price.
Management expects its rate base to grow by 7% yearly through 2030, which is expected to support annual dividend increases of 4% to 6%. Overall, Fortis is well-positioned to deliver steady earnings and growth in the long run.
Canadian dividend stock #2
TC Energy (TSX:TRP) is an attractive Canadian dividend stock offering steady income with long-term growth potential. With 98% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) backed by rate-regulated or take-or-pay contracts, the company is largely insulated from fluctuations in commodity prices. This structure enables TRP to generate steady and predictable earnings. That stability has supported 25 straight years of dividend increases. Moreover, it is set to benefit from higher energy demand led by data centre expansion.
Its extensive North American pipeline witnesses a high utilization rate, driving its financials and payouts. TC Energy has also extended its 5–7% annual EBITDA growth outlook through 2028 and approved more than $5 billion in new projects supported by long-term, low-risk agreements.
As demand for natural gas and cleaner energy infrastructure continues to rise, TC Energy appears well-positioned to maintain 3–5% annual dividend growth. For investors seeking dependable passive income alongside modest capital appreciation, TRP remains a compelling choice.
Canadian dividend stock #3
Telus (TSX:T) is another top TSX stock to add to your portfolio. Since 2004, the telecom company has returned over $24 billion to its shareholders. Moreover, its dividend has steadily climbed under a multi-year growth program launched in 2011. Today, the stock offers a high yield of more than 8%.
Its ability to consistently generate profitable growth gives Telus the financial power to pay and increase its dividend. The company targets a payout ratio of 60–75% of free cash flow, a range that supports both income distributions and reinvestment into its network and services. Looking ahead, Telus projects dividend growth of 3–8% annually through 2028.
Telus’s network expansion and a diversified business model will drive its payouts. Telus’s advanced wireless network, expansion of its TELUS PureFibre broadband system, and attractive bundled offerings are strengthening its competitive positioning, helping to attract new subscribers while reducing customer churn. Meanwhile, the company’s push to acquire margin-accretive customers and streamline costs provides additional support for earnings growth. These factors, along with a moderation in capital expenditure, will drive its payouts and share price in the coming years.
