3 Canadian Dividend Stocks for Passive Income That Keep Growing

These stocks have sustainable payouts and will likely increase their dividend, making them top bets for a growing passive-income stream.

Key Points
  • Several high-quality Canadian dividend stocks have consistently raised payouts through recessions, commodity cycles, and changing interest rates.
  • These companies stand out for their resilient business model, steady earnings, and decades of dividend growth.
  • Disciplined capital allocation and sustainable payout ratios enable them to maintain and steadily grow dividends over time.

Investing in Canadian companies that consistently raise their dividends is one way to build a passive-income stream that keeps growing. Notably, the TSX has several high-quality dividend stocks that have increased their dividends through recessions, commodity cycles, and shifting interest rate environments.

What sets these TSX stocks apart is the durability of their underlying operations. They typically operate in industries with steady demand, have strong competitive positioning, and generate resilient earnings. With disciplined capital allocation and sustainable payout ratios, they can maintain dividends during challenging periods and steadily raise them.

Against this background, here are three Canadian stocks that can help you earn a growing passive-income stream.

dividend growth for passive income

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Passive-income stock #1: Fortis

Fortis (TSX: FTS) is one of the most reliable Canadian dividend stocks to generate a passive income that keeps growing. This utility company is focused on electricity transmission and distribution and generates predictable cash flow under rate-regulated frameworks that help insulate earnings from economic volatility.

The company’s predictable, growing cash flow has enabled it to increase its dividend year after year. In November 2025, Fortis lifted its payout by 4.1%, marking 52 consecutive years of increases. The stock currently yields about 3.3%, supported by consistent, low-risk earnings.

Looking ahead, Fortis plans to invest $28.8 billion over five years, primarily in regulated utility assets. This disciplined capital allocation is expected to expand its rate base from approximately $42 billion in 2025 to $58 billion by 2030. Higher rate base will drive its earnings and support its projected annual dividend growth of 4% to 6% during this period.

Further, with rising electricity demand and a strong balance sheet, Fortis is well-positioned to deliver steady income, stability, and growth.

Passive-income stock #2: Enbridge

Enbridge (TSX: ENB) is an attractive choice for investors looking for a durable and growing passive income stream. The energy infrastructure giant has distributed dividends for more than 70 years. Moreover, it has raised its payout annually since 1995, regardless of economic and commodity cycles.

Enbridge’s payouts are supported by its resilient business model that generates steady earnings and distributable cash flow (DCF) per share. The majority of its EBITDA is generated from regulated assets and long-term, take-or-pay contracts, limiting exposure to volatile oil and gas prices. About 80% of EBITDA is indexed to inflation, providing a built-in hedge against rising costs. Its vast North American pipeline and utility network connects key supply and demand hubs, ensuring consistently high utilization.

In December, Enbridge increased its quarterly dividend by 3% to $0.97 per share ($3.88 annually), payable beginning March 1, 2026. That represents a yield of roughly 5.5% at current prices. With a target payout ratio of 60–70% of DCF and projected mid-single-digit earnings growth, Enbridge appears well-positioned to deliver reliable, growing passive income for long-term investors.

Passive-income stock #3: Canadian National Railway

Canadian National Railway (TSX: CNR) is a reliable Canadian dividend stock to generate passive income. It is one of North America’s largest rail operators and operates a vast network integral to the region’s supply chain. It hauls essential goods ranging from energy and agricultural products to manufactured and consumer items. This broad reach gives the company a competitive moat and helps cushion results during economic slowdowns.

Recently, CNR increased its quarterly dividend by 3%, marking 30 consecutive years of dividend growth. That track record reflects the durability of its business model, resilient earnings, and its commitment to shareholder returns.

Looking ahead, the company’s diversification across multiple freight categories will likely add stability to its operations and support steady earnings growth. Further, a recovery in freight volumes and its focus on improving efficiency augur well for growth and drive its payouts.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway, Enbridge, and Fortis. The Motley Fool has a disclosure policy.

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