Dividend stocks are ideal for long-term wealth building because they offer steady income and gradual capital appreciation. By reinvesting their regular payouts, investors can further enhance their overall returns. Although Canadian equity markets have recently reached new highs, concerns around elevated valuations and ongoing global trade disruptions continue to create an uncertain environment. In such conditions, dividend stocks can also provide added stability to your portfolio. Against this backdrop, here are my three top picks.
Enbridge
Enbridge (TSX:ENB) operates one of North America’s largest pipeline networks, transporting oil and natural gas under a tolling model and long-term take-or-pay agreements. The company also owns regulated natural gas utility operations and a portfolio of renewable energy assets supported by long-term power-purchase contracts. These regulated operations and contractual arrangements make Enbridge’s financials less sensitive to economic fluctuations, resulting in stable, predictable cash flows. Additionally, the company has minimal direct exposure to commodity prices, and most of its earnings are indexed to inflation. Supported by this solid foundation, Enbridge has paid dividends for 70 years and raised its payout at an annualized rate of 9% over the past three decades. Its forward yield currently sits at 5.55%.
Enbridge has also expanded its secured capital program to $35 billion, with projects scheduled to come online over the next five years. The company plans to invest $9–$10 billion annually to fund these developments. With this robust project pipeline, management expects EBITDA (earnings before interest, taxes, depreciation, and amortization), EPS (earnings per share), and DCF (discounted cash flow) per share to grow at a mid-single-digit rate through the remainder of the decade. Given its strong growth outlook and improving financial position, Enbridge appears well-positioned to maintain and increase its dividend in the years ahead.
SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is another compelling dividend stock, supported by its strong cash flows and attractive yield. The real estate investment trust (REIT) owns 197 strategically located properties across Canada, with 90% of the population living within 10 kilometres of at least one location. It also benefits from a high-quality tenant base, with 95% of tenants having regional or national presence and 60% offering essential services. These strengths contribute to its robust occupancy rate, which reached 98.6% in the third quarter.
The Toronto-based REIT continues to expand its portfolio, having opened three self-storage facilities this year, bringing its total to 14. Meanwhile, the management expects its facilities in Montreal and Laval to open next year, while projects in Burnaby and Victoria are slated for 2027. Beyond these developments, SmartCentres maintains a sizeable development pipeline of 86.2 million square feet.
Given its strong asset base, steady growth, and reliable cash flows, SmartCentres REIT appears well-positioned to continue delivering healthy monthly dividends. At present, it offers an appealing dividend yield of 7.05%.
Canadian Natural Resources
My final pick is Canadian Natural Resources (TSX:CNQ), a company with an outstanding track record of dividend growth and a forward yield of 4.97%. The oil and natural gas company operates a diversified, well-balanced asset base that requires relatively low reinvestment. Also, its efficient operations have kept costs low, resulting in a low breakeven point and strong cash flow. These robust cash flows have supported 25 consecutive years of dividend increases, delivered at an impressive annualized growth rate of 21%.
CNQ also holds large, high-quality reserves, with a proven reserve life index of roughly 32 years. The company plans to invest $6.68 billion this year and $6.42 billion next year to enhance its production capacity. Based on management’s guidance, these investments could drive production growth of 6.8% in 2025 and 3.2% in 2026. Given its low breakeven point, higher production volumes can translate into meaningful top and bottom-line growth.
With its strong reserve base, disciplined capital allocation, and consistent financial performance, CNQ appears well-positioned to continue delivering reliable dividend growth in the years ahead.
