If you like dividends, Canada is a great place to invest. You can find dividend stocks in a wide array of sectors and industries. However, investors do need to be cautious. Not every dividend stock is the same.
Stocks with overtly high dividends can be dangerous. If you are buying a stock for its dividends, you want to be sure that those dividends will be there through thick and thin. If you want safe and predictable dividends, here are two of my favourite Canadian stocks for 2026.
Source: Getty Images
My top Canadian real estate stock for dividends in 2026
Real estate stocks could be due for an attractive sentiment turnaround in 2026. The current geopolitical environment could lead to the debasement of currencies. Investors may start to flock to hard assets like real estate to protect and grow their wealth.
If interest rates remain stable or decline (even better), real estate could have a very good year. Granite Real Estate Investment Trust (TSX:GRT.UN) is one of my favourite REITs.
This REIT has been built to last for years. Over the decade, management has high-graded its portfolio with quality logistics and warehousing properties across Canada, the U.S., and Europe. It just made its first expansion into the U.K. market recently.
Granite is sitting with 98% occupancy and an average lease term over five years. If there is inflation, it will benefit from inflation-indexed rents over time.
Granite has been growing its cash flow per unit by a high-single digit average rate for the past five years. Yet, its stock has largely been stagnant until recently.
Granite has a 15-year history of consecutively increasing its distribution. It just raised its distribution by over 4%. It has a very modest payout ratio of only 68%, meaning it still has ample flexibility to grow the business and pay its distribution. This Canadian dividend stock yields 4% today and pays its distribution monthly.
My top Canadian infrastructure stock for dividends in 2026
Infrastructure and crucial energy assets could likewise gain steam in 2026. AltaGas (TSX:ALA) is a top Canadian dividend stock in this space. I like AltaGas’s double engine business.
Its regulated natural gas distribution utility business in the U.S. provides stable income and above average rate base growth. AltaGas expects that over 85% of its earnings before interest, tax, depreciation, and amortization (EBITDA) will be contracted or regulated in 2026.
Its midstream business is interesting for a few reasons. Firstly, Asian demand for commodities like propane and butane continues to rise. AltaGas is one of the largest exporters of these commodities in Canada. Secondly, improving natural gas prices should benefit its fractionation and processing segments.
In 2026, AltaGas is targeting 8% EBITDA growth and 6% earnings per share (EPS) growth. It hopes to grow EPS by a 5–7% annual rate all the way to 2030. It just raised its dividend by 6% to $1.34 per share.
Since 2020, ALA stock has raised its dividend annually by a 5.6% compounded annual growth rate. Its payout ratio has considerably improved over the years. It is targeting an EPS payout ratio of 50%–60%. This Canadian dividend stock yields 3.5% today.
The Foolish takeaway
While these Canadian stocks are not the fast growing on the TSX, they are consistent, and they pay reliable dividends. Investors can expect mid-to-high single digit earnings/cash flow per unit growth. Combine that with a low-to-mid single digit dividend yield and investors could earn a low-risk, 10–13% annualized return in the years to come.
