Canadians seeking top dividend stocks to buy today and hold for years could consider companies with resilient business models and growing earnings. Further, one should focus on low-volatility stocks with solid fundamentals to earn steady cash over the next decade. Notably, these companies are less sensitive to market swings and generate steady distributable cash flow regardless of economic cycles.
With this background, here are three Canadian stocks that can maintain their current payouts and increase dividends even in a market downturn. Thus, investors can count on these dividend stocks for years of passive income.
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Top dividend stocks #1: Canadian Utilities
Utility companies are known for their defensive and regulated businesses and predictable cash flows. This enables them to consistently pay dividends in all market conditions. Thus, a few top utility stocks are must-haves in a portfolio to generate steady dividend income.
Within the utility sector, investors could consider adding Canadian Utilities (TSX:CU). The company holds the record for the longest run of annual dividend increases among publicly traded Canadian firms, with 53 straight years of dividend growth.
Canadian Utilities’ payouts are supported by its highly contracted and regulated earnings base. The company’s years of investment have helped grow its global rate base to nearly $15.9 billion, supporting earnings growth and the ability to keep raising payouts.
Looking ahead, the company plans to invest $6.1 billion in regulated utilities between 2025 and 2027. This will expand its rate base and drive higher earnings and cash flow for years to come. At the same time, Canadian Utilities is pursuing opportunities beyond regulated utilities, including electricity generation, cleaner fuels, and energy storage. These emerging segments offer the potential for stronger long-term growth while diversifying its revenue base. Overall, Canadian Utilities is a top dividend stock to buy and hold for the long term.
Top dividend stocks #2: TC Energy
TC Energy (TSX:TRP) is a top dividend stock you can count on for years to come. With roughly 97% of its earnings tied to regulated operations or long-term take-or-pay contracts, TC Energy maintains a stable cash flow profile that is largely shielded from volatile commodity prices. This allows the energy infrastructure company to pay its dividend and consistently increase it.
Notably, TRP has raised its dividend for 25 consecutive years, reflecting the resilience of its earnings and cash flow across all market cycles.
Its extensive pipeline network connects low-cost natural gas to key regions across North America, ensuring consistent demand for its infrastructure. Beyond pipelines, TC Energy also holds interests in nuclear, natural gas, wind, and solar projects, which diversify its revenue streams and position it well to capitalize on energy transition opportunities.
TC Energy plans to invest $6 billion to $7 billion through 2026 in long-life, low-risk projects. This strategy is expected to expand earnings and support annual dividend growth of approximately 3% to 5%.
Its solid dividend payment history, highly regulated and contracted cash flow, and visibility over future payouts make it a dependable dividend stock.
Top dividend stocks #3: Emera
Emera (TSX:EMA) is another top dividend stock to hold for years. The company’s payouts are supported by regulated utility operations, which provide a dependable stream of cash flow. Thanks to its regulated assets and predictable cash flow, Emera raised its dividend for 19 consecutive years.
Emera’s $20-billion capital program through 2030 is likely to increase its rate base, boosting earnings over time. Management expects its rate base to increase by 7%–8% during this period, supporting earnings growth of 5%–7% annually. Thanks to its growing earnings base, Emera plans to increase its dividend by 1%–2% in the coming years.
Emera is expanding its solar capacity and modernizing Tampa Electric’s power grid. Moreover, it is boosting energy storage and transmission infrastructure in Nova Scotia. These initiatives are likely to boost its earnings and cash flow. Moreover, its strong presence in Florida, one of North America’s fastest-growing energy markets due to a surging population and development, positions it well to deliver solid long-term growth.
