Investing $1,000 in Canada’s smartest dividend stocks can help you generate worry-free income regardless of short-term market swings. These smartest dividend stocks are typically backed by fundamentally strong companies with resilient business models, steady earnings, and a commitment to return cash to shareholders. Thus, investing in these dividend growers means solid passive income year after year.
If you have $1,000 to invest, here are the smartest Canadian dividend stocks to buy right now.
Source: Getty Images
Smartest dividend stock: Fortis
Fortis (TSX: FTS) is one of the smartest dividend stocks to buy right now. The utility company primarily focuses on electricity transmission and distribution. Its rate-regulated structure and predictable cash flows help insulate earnings from economic cycles, enabling reliable dividend payments and growth even during periods of market uncertainty.
Fortis has been increasing its dividends for more than five decades. In November 2025, the company raised its dividend by 4.1%, marking its 52nd consecutive year of dividend growth. Fortis stock currently offers a quarterly dividend of $0.64 per share, yielding 3.2%.
It has delivered notable capital gains in recent months. For instance, Fortis stock has gained around 28% in the last 12 months. This growth reflects solid operating performance, improving market sentiment, and rising electricity demand.
Fortis plans to invest $28.8 billion over the next five years, primarily in regulated utility infrastructure. By directing capital toward regulated assets rather than large, complex development projects, the company aims to expand its low-risk earnings base while limiting execution risk.
These investments are expected to increase Fortis’s consolidated rate base to roughly $58 billion by 2030. The expansion should support earnings growth and allow the company to increase its dividend by 4% to 6% every year.
Supporting Fortis’s investment case is the rising electricity demand from manufacturing and data centres. Moreover, Fortis’s divestment of non-core assets further strengthens its financial position. Overall, Fortis stock offers reliable income and steady growth potential, making it one of the smartest stocks to buy and hold right now.
Smartest dividend stock: Bank of Montreal
Bank of Montreal (TSX: BMO) is a reliable dividend stock to buy with $1,000. The Canadian banking giant has maintained uninterrupted dividend payments for 197 years, reflecting a longstanding commitment to returning capital to shareholders and generating consistent earnings.
The bank recently increased its quarterly dividend to $1.67 per share, up 5% year-over-year. Over the past 15 years, BMO has grown its dividend at an average annual rate of roughly 5.7%. For income-focused investors, this steady growth ensures a growing passive income stream.
BMO’s dividend is driven by a diversified revenue base, including its personal and commercial banking, wealth management, and capital markets businesses. This broad mix of revenue streams, focus on improving asset quality, and a strong balance sheet help the bank maintain stability through economic cycles. Ongoing efficiency initiatives further cushion its profitability, supporting higher dividend payments.
In addition, BMO continues to invest in technology and artificial intelligence to modernize operations, improve customer experience, and increase productivity. Over time, these efforts should lower costs, strengthen client relationships, and support continued dividend growth.
