Rates Are Stuck: 1 Canadian Dividend Stock I’d Buy Today

Side hustles are booming, but a steady dividend stock like Emera could be the quieter “second income” that doesn’t need your weekends.

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published February 4, 9:45 pm EST

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Key Points

Emera is a regulated utility, so it can often recover costs and keep cash flow steadier.
Its $20 billion capital plan aims to grow its rate base 7% to 8% through 2030.
The key risks are regulation delays, cost overruns, and storm damage that can hit results.

Side hustles have become the new financial air freshener amongst all the rate noise. You spray a little extra income around and hope the stress smells less intense. One recent stats roundup by Omni Calculator found that 27% of U.S. adults had a side hustle in 2025, and the average side hustler earned about US$885 a month. Even more telling, 35% said the money goes toward regular living expenses, and 29% said they think they will always need a side hustle to make ends meet.

And it’s needed more than ever as rates feel stuck. Groceries are still rudely expensive. And every time you check your mortgage statement, it looks back at you like it knows something. In that kind of market, a boring dividend stock can suddenly look brilliant. The key is finding a payer that can keep growing cash flow even if rate cuts take their sweet time.

A worker gives a business presentation. — Source: Getty Images

EMA

Emera (TSX:EMA) is a utility dividend stock based in Halifax, and it earns most of its money from regulated electricity and gas. That matters in 2026 because regulated utilities can recover many costs over time, instead of eating them all at once. Emera’s biggest earnings engine is Tampa Electric in Florida, and it also owns Nova Scotia Power plus other utility assets. Not flashy, but it keeps lights on, and that’s a real edge.

Over the last year, the loudest update has been investment. In November 2025, Emera unveiled a $20 billion capital plan for 2026 to 2030 and extended its rate base growth guidance of about 7% to 8% through 2030. Rate base growth is the utility version of organic growth. When it puts money into the grid and regulators approve the work, earnings can rise in a fairly repeatable way.

News also kept circling around portfolio simplification. The year-ago quarter was distorted by charges tied to a pending sale of New Mexico Gas Company, which made comparisons look strange even when the core business improved. Investors usually like a cleaner story. Fewer moving pieces can mean fewer surprises.

Earnings support

Earnings give you the best snapshot of how the plan is landing. In the third quarter of 2025, Emera reported adjusted net income of $263 million, or $0.88 per common share, up from $236 million, or $0.81, a year earlier. Management linked the gain mainly to increased earnings at Tampa Electric, partly offset by lower earnings at Nova Scotia Power and higher corporate costs.

The 2026 outlook hinges on execution and regulation. If Emera builds on time and on budget, it can grow earnings even in a flat economy, as regulators generally allow returns on invested capital. If rates stay stubborn, the market may stay picky about debt-heavy sectors, so progress on approvals and costs will matter more than big promises. A near-term checkpoint comes on Feb. 23, 2026, when it plans to release Q4 2025 results.

The valuation looks reasonable for what you are buying, but it is not a bargain-bin rescue story. Current stats put the dividend yield at 4.3%, at a trailing 18.8 times earnings. That pricing says investors already trust the dividend, but not enough to treat it like a guaranteed bond replacement. Even so, here’s what that dividend could bring in from a $7,000 investment.

COMPANY	RECENT PRICE	NUMBER OF SHARES	ANNUAL DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
EMA	$68.91	101	$2.92	$294.92	Quarterly	$6,969. 91

Bottom line

So could it be a buy for others in 2026? It can, if you want a steadier dividend payer that can keep investing while the rate backdrop stays annoying. The capital plan gives it a visible path to growth, and Q3 showed Tampa Electric can still push results higher. The bear case is simple too: regulators can slow recovery, big projects can run over budget, and storms can create ugly quarters. If you accept those trade-offs, this dividend stock can earn its keep. And if you feel tempted to solve everything with a side hustle, remember how lopsided the reality can be. A dependable dividend payer won’t feel exciting, but it can feel like a quiet second income that shows up even when you do not.