In a low-interest-rate environment, investors can enhance their passive income by investing in dividend-paying stocks. However, dividends are never guaranteed. As such, investors should focus on high-quality companies with strong underlying businesses, robust cash flow generation, and sustainable growth prospects. One of the most reliable indicators of dividend sustainability is a consistent history of dividend growth, which reflects both the strength of a company’s cash flows and management’s confidence in future earnings.
Against this backdrop, let’s take a closer look at three Canadian stocks that have consistently increased their dividends over the past few years, making them attractive options for income-seeking investors.
Source: Getty Images
Enbridge
Enbridge (TSX:ENB) is a diversified energy company that transports crude oil and natural gas across North America under a predominantly regulated, toll-based framework supported by long-term, take-or-pay contracts. The company also operates three natural gas utility assets in the United States and maintains exposure to the renewable energy space. Notably, approximately 98% of Enbridge’s adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is generated from regulated assets and long-term contracts, making its financial performance less susceptible to market volatility and enabling stable, predictable cash flows.
Supported by these robust cash flows, Enbridge has raised its dividend for 31 previous years and currently offers an attractive forward dividend yield of 6%. Looking ahead, the company is advancing its $37 billion secured capital program, with projects expected to enter service through 2029. In addition to these expansions, higher asset utilization and ongoing system optimization should further support earnings growth. Backed by these growth prospects, management expects to return $40–$45 billion to shareholders over the next five years, reinforcing the sustainability of Enbridge’s dividend and its long-term income potential.
Canadian Natural Resources
Another Canadian stock that I believe offers an excellent opportunity for income-seeking investors is Canadian Natural Resources (TSX: CNQ). For the previous 25 years, the company has uninteruptedly raised its dividend at an impressive annualized growth rate of 21%. As a leading oil and natural gas producer, CNQ operates a diversified and well-balanced asset base with relatively low capital reinvestment requirements. Its effective and efficient operations have reduced production costs, resulting in a lower breakeven West Texas Intermediate (WTI) price and strong, resilient cash flows. These healthy cash flows have supported consistent dividend increases, and the stock currently offers a forward dividend yield of 5.2% based on its December 26 closing price.
Moreover, CNQ holds more than five billion barrels of oil equivalent in reserves, making it the second-largest oil producer globally. The company’s total proven reserve life index of approximately 32 years provides excellent long-term production visibility. To further enhance its production capabilities, CNQ plans to invest about $6.7 billion in 2025 and $6.4 billion in 2026. Given its low production costs, these investments should support growth in both revenue and earnings.
Combined with a strong balance sheet, disciplined capital allocation, and consistent operating performance, Canadian Natural Resources is well-positioned to continue delivering attractive, sustainable dividend growth for income-focused investors.
Fortis
My final pick is Fortis (TSX: FTS), an electric and natural gas utility serving approximately 3.5 million customers across the United States, Canada, and the Caribbean. With a highly regulated asset base and about 94% of its assets concentrated in low-risk transmission and distribution businesses, Fortis’s financial performance is less exposed to market volatility, enabling it to deliver stable, reliable results across economic cycles. Supported by these dependable cash flows, the company has increased its dividend for 52 consecutive years and currently offers a dividend yield of 3.6% based on its December 26 closing price.
Fortis continues to expand its rate base through disciplined capital investments, having deployed $4.2 billion in the first three quarters of the year and remaining on track to meet its full-year capital spending target of $5.6 billion. Looking ahead, the company plans to invest $28.8 billion over the next five years, which could support its rate base growth at a compound annual rate of approximately 7% to $57.8 billion by 2030. This steady expansion should support earnings growth and, in turn, underpin future dividend increases. Notably, management expects to raise the dividend by 4–6% annually through 2030, reinforcing Fortis’s appeal as a high-quality, long-term income investment.
