Dividend stocks are the top investments for investors to start an income stream. By owning shares in companies that distribute a portion of their profits to shareholders, investors can receive regular cash payments that help offset day-to-day expenses or supplement other sources of income. Over time, reinvesting those dividends can help investors accumulate more shares and benefit from long-term compounding.
That said, dividends should never be taken for granted. Payouts are not guaranteed, and companies can reduce or suspend them if financial conditions deteriorate. For that reason, the sustainability of a dividend is far more important than its headline yield. One should focus on businesses with a track record of maintaining and growing their dividends, as these companies tend to be financially disciplined and operationally resilient.
With that framework in mind, if I were limited to buying just two dividend stocks in 2026, my focus would be on Canadian companies with well-established businesses, resilient cash flows, and a commitment to rewarding shareholders. These stocks are more likely to maintain their payouts even during challenging periods.
Dividend stock #1: TC Energy
TC Energy (TSX: TRP) is an attractive dividend stock worth considering in 2026. Its strong record of dividend growth (25 consecutive years), resilient business model, and visibility into future dividend growth make it a top income stock. Moreover, TC Energy is well-positioned to maintain this growth streak.
Notably, almost all of its cash flow comes from regulated assets or take-or-pay contracts. This operating structure insulates its earnings from commodity price volatility and provides reliable cash across market cycles. Further, its extensive pipeline network is highly utilized, supporting its cash flow and dividend payments.
TC Energy is also likely to benefit from its diversified revenue base, including natural gas, nuclear, wind, and solar assets. Moreover, TC Energy is well-positioned to capitalize on the ongoing shift toward lower-emission energy sources.
Looking ahead, the company plans to invest $6–$7 billion in low-risk projects through 2026 and targets dividend growth of 3% to 5% per year, making it a perfect TSX stock for investors seeking dependable passive income.
Dividend stock #2: Canadian Utilities
Utility stocks are top investments for dividend seekers. As these companies operate regulated, defensive businesses built around essential services, they generate predictable and growing cash flows even during economic slowdowns. This supports consistent dividend payments across market cycles.
Within this space, Canadian Utilities (TSX:CU) is one of my top picks for its stellar dividend growth history. The utility giant has raised its dividend for 53 consecutive years, showing resilience through multiple economic downturns. Its payouts are supported by its highly contracted and regulated earnings base.
Canadian Utilities continues to invest in growth, expanding its global regulated rate base. This will expand its low-risk earnings base and support higher dividend payments. From 2025 to 2027, it plans to invest about $6.1 billion in regulated utility operations, a move expected to lift long-term earnings and cash flow. The company is also pursuing opportunities in clean energy, electricity generation, and energy storage, further strengthening its future income potential.
