You do not need a large amount of capital to begin building a dividend-focused investment portfolio. Even with less than $100, investors can take the first step toward owning high-quality TSX dividend stocks. What ultimately drives long-term success is not the size of the initial investment, but the habit of investing consistently and allowing time and compounding to do the heavy lifting.
Regular investments in these TSX stocks can steadily grow in value, particularly when those companies have fundamentally strong businesses and are committed to returning cash to shareholders. Reinvesting dividends further enhances your returns as those payouts can be used to acquire additional shares, increasing future income and accelerating compounding over time.
Importantly, the companies have established businesses with durable competitive positions and dividend policies designed to be sustainable through economic cycles. Their share prices remain accessible for smaller investors, while their income potential and stability make them well-suited for those seeking dependable, lower-stress returns.
With that context in mind, here are the five best TSX dividend stocks currently trading under $100.
Best TSX dividend stocks #1: Fortis
Fortis (TSX:FTS) is one of the best TSX dividend stocks to buy under $100. Its defensive, rate-regulated utility operations deliver predictable cash flows that have supported 52 consecutive years of dividend increases. This reflects the sustainability of Fortis’s payouts and management’s commitment to enhancing shareholder value.
Looking ahead, the utility giant’s $28.8 billion capital plan will expand its rate base and drive earnings and payouts. Management expects the rate base to increase at a compound annual growth rate (CAGR) of 7% through 2030. This should support earnings expansion and dividend growth of 4% to 6% annually during that period. Moreover, rising power demand adds long-term upside to Fortis stock.
Best TSX dividend stocks #2: Enbridge
With 31 years of uninterrupted dividend growth, Enbridge (TSX:ENB) is a reliable TSX dividend stock trading under $100. The company generates steady earnings and distributable cash flow (DCF) across all market conditions that support its payouts. Enbridge’s operations are largely insulated from commodity price volatility. Moreover, a significant portion of its cash flow comes from regulated assets and long-term contracts, adding stability to its operations.
Looking ahead, Enbridge maintains a sustainable payout ratio. At the same time, the high utilization of its liquid pipeline, expansion of utility assets, and low-carbon initiatives augur well for future growth. Enbridge’s earnings and DCF are projected to increase at a mid-single-digit rate in the medium term, positioning it for continued dividend increases.
Beyond FTS and ENB: 3 dividend plays worth owning under $100
Investors looking for the best dividend stocks under $100 should also consider Canadian Utilities (TSX:CU), Canadian Natural Resources (TSX:CNQ), and TC Energy (TSX:TRP). These TSX stocks have raised their dividends for decades.
Canadian Utilities has increased its dividend for 53 consecutive years, making it one of the most reliable income stocks in Canada. Its worry-free payouts are driven by a highly regulated and contracted earnings base that provides steady cash flows regardless of economic conditions. The company’s global rate base has expanded to $15.9 billion, supporting earnings growth and giving management the financial flexibility to continue raising dividends.
Canadian Natural Resources has delivered 25 straight years of dividend increases, with payouts growing at an impressive CAGR of 21% over that period. CNQ’s diversified portfolio of long-life, low-decline assets and a significant inventory of undeveloped land augur well for growth. Moreover, its capital-efficient projects support strong free cash flow, positioning the company to sustain and grow dividends.
TC Energy rounds out the group with a dividend growth streak that stretches back to 2000. Almost all of its earnings stem from regulated operations or long-term take-or-pay contracts, creating a stable, predictable cash flow profile. This structure provides a solid foundation for ongoing dividend growth. Management expects to increase the annual dividend by 3% to 5% over the long term.
