Canadian dividend stars are the top investment for investors seeking worry-free income. These companies have been steadily distributing and increasing dividends for years, making them compelling income stocks. While the broader equity market has pushed many Canadian stocks higher, a few of these companies are still trading at good prices, giving investors a chance to buy top dividend stocks without paying an excessive premium.
With this background, here are two Canadian dividend stars that are still trading at attractive prices, have strong fundamentals, and could reward shareholders with steady dividend growth.
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Canadian dividend star #1: TC Energy
TC Energy (TSX: TRP) is an attractive dividend stock to consider now. Although the stock has climbed about 37% over the past year, its valuation still appears reasonable given the company’s steady growth outlook and attractive yield.
TC Energy operates one of North America’s largest networks for transporting and storing natural gas, along with a portfolio of power generation assets. Its long-life infrastructure connects low-cost supply basins to major North American and export markets, generating reliable cash flows that support stable earnings and dividends.
Notably, much of the pipeline network operates under long-term commercial agreements such as take-or-pay and cost-of-service contracts. This operating structure limits exposure to commodity price swings and enables the company to generate revenue even during periods of market volatility.
Thanks to its highly contracted and regulated cash flow, TC Energy has raised its dividend for 26 consecutive years. TC Energy currently offers a quarterly dividend of $0.85 per share, yielding roughly 4.1%.
Looking ahead, TC Energy is well-positioned to benefit from structural demand drivers, including ongoing electrification, expanding LNG exports, and rising data centre energy demand. Management expects EBITDA to grow 6% to 8% in 2026, with projected growth of 5% to 7% annually over the following three years. Further, the long-term contracted projects should support continued earnings growth, help lower debt, and drive higher dividend payments, which management expects to increase by 3% to 5% per year.
Canadian dividend star #2: Emera
Emera (TSX: EMA) is another dividend star trading at an attractive price. Its regulated electric and natural gas utilities and related energy infrastructure businesses generate predictable cash flow regardless of market conditions. This defensive structure enables Emera to consistently return cash to shareholders through higher dividend payments.
Emera raised its dividend for 19 consecutive years, highlighting the stability of its earnings base and management’s commitment to enhancing shareholder value.
The company’s growth prospects remain solid, driven by ongoing investment in business and rising energy demand. Emera plans to invest over $20 billion through 2030, focusing on grid modernization, renewable energy, energy storage, and natural gas infrastructure. These investments are expected to expand the company’s rate base by about 7%–8% annually, supporting adjusted earnings-per-share growth of 5%–7% per year.
With earnings rising steadily, management anticipates dividend growth of roughly 1%–2% annually, making it a dependable stock for a growing income stream.
