Dividend stocks are companies that pay shareholders a portion of their profits through regular dividend payouts. These companies allow investors to benefit from both capital appreciation and steady income. Thanks to their consistent payouts and resilient financial performance, these companies tend to be less sensitive to market volatility, helping stabilize investors’ portfolios.
However, dividend payments are not guaranteed. Investors should exercise caution when selecting dividend stocks and evaluate a company’s fundamentals, cash flow strength, and long-term growth prospects before investing. Against this backdrop, let’s look at two Canadian dividend stocks that currently present attractive buying opportunities.
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Enbridge
Enbridge (TSX: ENB) is a diversified energy infrastructure company that operates an extensive pipeline network, transporting oil and natural gas across North America under a tolling framework and long-term take-or-pay contracts. It also operates three U.S. natural gas utilities and owns 41 clean energy assets backed by long-term power-purchase agreements. With the majority of its earnings coming from regulated assets and long-term contracts—alongside minimal exposure to commodity price fluctuations and inflation-indexed revenue—Enbridge generates stable, predictable cash flows. These strong cash flows have enabled the company to pay dividends for 70 consecutive years.
Yesterday, Enbridge announced a 3% increase to its quarterly dividend, raising it to $0.97 per share and marking its 31st straight year of dividend growth. The stock currently offers an appealing forward dividend yield of 5.82%.
In the third quarter, the Calgary-based company added $7 billion in new projects, expanding its secured capital backlog to $35 billion. Enbridge plans to invest $9–$10 billion annually to advance these projects, which are expected to come into service through 2030. Supported by these growth initiatives, management expects EPS (earnings per share) to increase by 4–6% and discounted cash flow per share by 3% through 2026, followed by annualized growth of around 5% thereafter. Given this strong outlook, management aims to return $40–$45 billion to shareholders over the next five years—making Enbridge an attractive long-term buy.
Bank of Nova Scotia
Another top dividend stock I am bullish on is Bank of Nova Scotia (TSX: BNS), which has paid dividends uninterruptedly since 1833. The bank operates across several countries and offers a comprehensive suite of financial services, resulting in diversified revenue streams and strong cash flows that underpin its consistent dividend payouts. Over the past decade, it has increased its dividend at an annualized rate of 4.73% and currently offers an attractive yield of 4.49%.
Earlier this week, BNS reported a strong fourth-quarter performance, surpassing analysts’ expectations. The bank posted net income of $2.21 billion. After excluding $352 million in adjusting items, which included restructuring charges and severance provisions, adjusted net income came in at $2.56 billion, translating to adjusted EPS (earnings per share) of $1.93. Its adjusted EPS reflects a robust 22.9% year-over-year increase, supported by earnings growth across all segments. Additionally, return on equity improved to 12.5%, up from 10.5% in the same quarter last year.
In addition to delivering strong financial results, BNS has strengthened its balance sheet, improved its loan-to-deposit ratio, enhanced its common equity tier-one ratio, and maintained a healthy liquidity. The bank is also advancing its strategy of deepening its footprint in the lower-risk North American market while scaling back less profitable or higher-risk operations in Latin America. By reallocating resources toward higher-return opportunities, BNS aims to streamline operations and strengthen overall profitability. Given these efforts and its impressive track record of rewarding shareholders, I believe BNS is well-positioned to continue paying attractive dividends, making it a compelling buy.
