When it comes to long-term investing, few strategies are as reliable as dividend-growth investing. In Canada, a select group of companies consistently stand out for their ability to grow dividends year after year, making them a favourite among income-seeking investors.
These companies, known as Canadian Dividend All-Stars (CDAS), have raised their dividends for at least five consecutive years — offering both stability and growth. Let’s explore three of the most reliable dividend all-stars on the market today.
Fortis: A legacy of stability
For over 50 years, Fortis (TSX:FTS) has proven itself as one of the most reliable dividend payers in Canada. The utility sector is well-known for its stability, and Fortis, with its diversified operations in regulated utilities, is no exception. Its long streak of dividend increases makes it a go-to stock for conservative investors and retirees looking for steady, predictable income.
At the time of writing, Fortis trades at $71.53 per share, with a dividend yield of about 3.6%. While the stock is widely considered fairly valued — meaning there’s limited upside in the short term — its strong dividend growth is what makes it particularly attractive. Management targets annual dividend increases of 4-6% through 2030, making it a solid choice for long-term dividend growth.
However, the stock doesn’t come cheaply, as it typically trades at a premium valuation. For those looking for a better entry point, a pullback to the $64-69 range would present a more favourable opportunity to accumulate shares.
Empire: A defensive play with growth potential
Empire (TSX:EMP.A), the parent company of well-known grocery store chains like Sobeys, is another solid name in the Canadian dividend-growth space. Operating in the defensive consumer staples sector, Empire benefits from the basic need for food, providing a steady stream of revenue even during economic downturns.
Empire has been raising its dividend for around 30 years, with an impressive 10-year dividend growth rate of 8.3%. Currently priced at $45.27 per share, Empire offers a modest dividend yield of 1.9%. While this might seem low compared to some other stocks, the key here is the potential for growth, especially in the wake of its current pullback.
With a 14% discount from its consensus price target, Empire presents an attractive “buy-the-dip” opportunity for investors seeking long-term total returns. Its solid track record, combined with an essential business model, positions it well for future dividend increases.
CN Rail: A rail giant with a competitive edge
Canadian National Railway (TSX:CNR) is a prime example of a blue-chip stock with both stability and growth potential. The company’s unparalleled rail network stretches across Canada, connecting the Atlantic and Pacific coasts as well as the Gulf of Mexico. This extensive and hard-to-replicate infrastructure, combined with a focus on operational efficiency and technological innovation, gives CNR a strong competitive advantage in the market.
CNR has been consistently growing its dividend, with a 10-year dividend-growth rate of 11%. However, recent dividend hikes have been more modest, with a 5% increase in January 2025. Trading at around $137 per share, CNR offers a dividend yield of 2.6%. Despite recent growth slowing, the stock still represents a solid, income-generating investment — especially for those looking to invest in a stable, high-quality business.
At a discount of roughly 12% based on analyst price targets, CNR is an attractive option for long-term investors looking to add a dividend stalwart to their portfolio.
Investor takeaway: Why dividend all-stars are worth the investment
For Canadian investors seeking stable, growing income, dividend all-stars like Fortis, Empire, and Canadian National Railway represent some of the most reliable choices on the market. These companies have proven track records of dividend growth, making them ideal for those seeking income in retirement or long-term wealth-building.
While there may be short-term price fluctuations, the core appeal of these companies lies in their ability to grow dividends year after year — regardless of market conditions. By focusing on companies with a history of dividend increases, investors can build a portfolio that generates steady income, provides growth potential, and helps weather market volatility.
