Dividend stocks are a solid investment to start a passive-income stream. These companies reward shareholders with regular cash payments, which can help cover near-term expenses. Moreover, investors can reinvest dividends to buy additional shares and benefit from compounding over time.
Notably, dividend-paying companies that consistently increase their payments are often well-established businesses with strong fundamentals. Such firms have strong balance sheets, resilient cash flows, and the ability to navigate economic slowdowns effectively. As a result, they are more likely to sustain their dividends during challenging periods and also grow them over time.
Against this background, here are the top three dividend-paying Canadian stocks I’d tell anyone to buy.
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Top dividend stocks #1: Enbridge
Enbridge (TSX: ENB) is a super dividend stock I’d tell anyone to buy. It is known for increasing its dividends year after year. The energy infrastructure company recently announced a 3% increase in its quarterly dividend to $0.97 per share, or $3.88 annually, effective March 1, 2026. Including this hike, Enbridge has extended its dividend-growth streak to 31 consecutive years.
Enbridge’s payouts are supported by its highly resilient business model. Roughly 98% of Enbridge’s earnings before interest, taxes, depreciation, and amortization (EBITDA) come from regulated assets or long-term, take-or-pay contracts. This operating structure insulates its cash flows from volatile oil and gas prices. Its vast pipeline and energy infrastructure network spans key supply and demand hubs across North America, leading to higher utilization and earnings. In addition, about 80% of EBITDA benefits from built-in revenue inflators and regulatory protections.
Enbridge also targets a sustainable payout ratio of 60–70% of distributable cash flow and offers a compelling yield of 5.9%.
While the company’s core operations are likely to maintain strength, its growing renewables portfolio and rising power demand augur well for growth. Enbridge’s solid fundamentals position it well to maintain its dividend-growth streak, making it an attractive dividend stock to buy.
Top dividend stocks #2: Fortis
Fortis (TSX: FTS) is another top dividend stock I’d tell anyone to buy. The company operates a rate-regulated utility business, which provides predictable revenue and cash flow. This defensive structure supports consistent dividend payments and reduces earnings volatility.
Fortis has increased its dividend for 52 consecutive years, which highlights the strength of its cash flows and the sustainability of its payouts. Looking ahead, the company plans to invest $28.8 billion in regulated assets, driving its rate base at a 7% compound annual growth rate (CAGR) through 2030. This expansion is expected to lift earnings and support annual dividend growth of 4–6%.
With rising electricity demand from industrial activity and data centres, Fortis remains a reliable dividend stock with attractive long-term growth prospects. Moreover, it also offers a well-protected yield of 3.6%.
Top dividend stocks #3: Bank of Montreal
Bank of Montreal (TSX: BMO) is one of Canada’s most dependable dividend investments. The bank has paid dividends for 197 consecutive years, highlighting its durability across economic cycles. Over the past 15 years, BMO has also grown its dividend at a healthy 5.7% CAGR, reflecting consistent financial strength.
Its distributions are supported by a diversified business model, a stable deposit base, and strong operating performance. While all major segments contribute to earnings, wealth management is a key driver. The segment benefits from growing client assets and supportive market conditions, enhancing earnings stability.
BMO’s improving efficiency ratio further reflects disciplined cost control, which supports profitability and ongoing shareholder returns. In summary, for income-focused investors, BMO’s resilient and growing dividend makes it a compelling long-term holding.
