The Canadian equity market has several high-quality stocks that consistently grow their dividends. The resilience of their payouts and their ability to consistently increase distributions make them top Canadian dividend stocks to buy and hold forever.
These Canadian companies have solid fundamentals, durable earnings, and sustainable payouts to support future dividend distributions.
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Top Canadian dividend stock #1: TC Energy
TC Energy (TSX: TRP) is a top Canadian dividend stock to own forever. The energy infrastructure company’s high-quality assets and low-risk earnings base enable it to reward shareholders with higher dividend payments.
Approximately 98% of the company’s EBITDA comes from regulated assets or long-term, take-or-pay contracts. This operating structure means its cash flow is largely insulated from commodity price swings. Its pipeline connects some of North America’s lowest-cost natural gas supplies to major demand centres. Its assets play a key role in North America’s energy value chain and thus witness higher utilization, supporting its earnings.
TC Energy recently raised its dividend by 3.2%, extending its streak of annual increases to 26 consecutive years.
The company has diversified its revenue streams and is investing in nuclear, wind, and solar power assets. This broader footprint positions it well to benefit from the ongoing shift toward lower-emission energy sources while maintaining its focus on stable, contracted cash flow.
Looking ahead, TC Energy continues to advance its multi-billion-dollar capital program centred on secure, long-duration projects. The emphasis remains on low-risk, highly executable projects designed to generate attractive returns.
Moreover, the ongoing electrification, expansion of data centres, and coal conversions are creating significant energy demand, supporting TC Energy’s long-term growth. The company’s management projects long-term annual dividend growth of 3% to 5%. Moreover, it offers a sustainable yield of 4.1%, which makes it a dependable dividend stock.
Top Canadian dividend stock #2: Bank of Montreal
Bank of Montreal (TSX: BMO) is another top Canadian dividend stock to own forever. The financial services giant has paid dividends continuously for 197 years. Its solid payout history reflects its ability to generate steady earnings and focus on returning cash to its shareholders.
BMO recently raised its quarterly dividend to $1.67 per share, a 5% increase from the prior year. Over the past 15 years, the bank has compounded its dividend at an average annual rate of approximately 5.7%. For investors focused on building passive income streams, that steady pace of growth can meaningfully enhance total returns over time through both higher payouts and reinvestment.
BMO’s payouts are backed by a high-quality earnings base. The bank benefits from a diversified revenue mix spanning Canadian and U.S. personal and commercial banking, wealth management, and capital markets. This diversification, along with disciplined risk management and a strong balance sheet, provides stability across economic cycles. Its ongoing efficiency initiatives further support profitability, helping drive earnings and dividend payments.
Bank of Montreal’s investments in technology and artificial intelligence (AI) are aimed at modernizing core operations, enhancing customer experience, and improving productivity. Over time, these initiatives should reduce costs, deepen client relationships, and expand cross-selling opportunities.
Overall, BMO’s nearly two-century dividend payment history and a high-quality earnings base position it well to pay and increase its dividend.
