5 Dividend Stocks That Belong in Almost Every Portfolio

Discover why dividend stocks are essential for Canadian investors looking to offset market volatility and enhance returns.

Key Points
  • Dividend stocks can reduce portfolio volatility and provide steady income; this piece highlights five top Canadian dividend names to consider.
  • The picks: Fortis (FTS) — 52 years of consecutive raises; Granite REIT (GRT.UN) — 15 years of distribution growth (~4% yield); Canadian Natural (CNQ) — 26 years of raises and ~3.8% yield; Pembina (PPL) — ~4.6% yield with expansion projects; Exchange Income (EIF) — diversified income-growth (~2.8% yield).
  • They span utilities, REITs, energy producers, and services, offering a mix of income, dividend growth and upside from stronger energy prices, logistics demand and northern/defence tailwinds.

Dividend stocks serve an important place in almost every Canadian investor’s portfolio. The income acts as a return to offset market volatility. Likewise, many dividend stocks are generally less volatile in the market, so owning a few can act as a stabilizing ballast in a portfolio. If you are wondering what dividend stocks to hold, here are five of the best.

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Source: Getty Images

Fortis: A top dividend stock for decades

Fortis (TSX: FTS) is a dividend staple in Canada. 52 years of consecutive dividend growth are a testament to the consistency and reliability of this company over the years.

Fortis has nine regulated utilities across North America. It is diversified by region and regulators. Its distribution and transmission assets form a crucial backbone to the power and energy grid in its jurisdictions. Consequently, it earns a very predictable income over time.

Fortis stock yields 3.17% today, but that will grow as it continues to raise its dividend in the years ahead.

Granite REIT

Granite Real Estate Investment Trust (TSX: GRT.UN) is another dividend staple for exposure to the real estate sector. Granite is simply top class all the way from its portfolio to its balance sheet to its management team.

It operates high-quality logistics and manufacturing properties across Canada, the U.S., Europe, and the United Kingdom. It sits with 98.6% committed occupancy and 5.5 years of average lease term. Solid demand for its assets is also helping it enjoy strong rental rate growth on lease turnover and renewal.

This REIT has raised its distribution for 15 consecutive years. Granite yields over 4% today.

Canadian Natural Resources: A top dividend-growth stock

When you are talking about great Canadian dividend-growth stocks, you can’t forget Canadian Natural Resources (TSX: CNQ). Canadian Natural has raised its annual dividend for 26 consecutive years. Its dividend has grown by a 20% compounded annual rate over that time.

With 1.57 million barrels of oil equivalent every day, this company is Canada’s largest energy producer. It is also one of Canada’s best-run companies. It operates with a factory-like efficiency that allows for an industry-leading low cost of production.

With energy prices soaring on Middle East tensions, Canadian Natural should be primed for strong free cash generation. With an updated capital return framework, shareholders are in a good position for elevated cash returns in 2026. This stock yields 3.75% now.

Pembina Pipeline

Pembina Pipeline (TSX: PPL) is another dividend stock set to prosper in this environment. Energy commodities could become scarcer, and demand for Canadian energy could propel pricing.

Better commodity prices help Pembina’s marketing business. It also means more throughput through its assets as producers look to benefit from higher prices. Pembina has several attractive opportunities to expand its network, including expanded collection pipelines, a new LNG terminal, and power generation for data centres.

Pembina stock yields 4.6% right now and has been growing its dividend annually for the past few years.

Exchange Income: An income and growth stock

If you are looking for a bit of growth and income, Exchange Income Corporation (TSX: EIF) is a dividend stock to buy. This is a diversified services company. However, its main business is operating airlines that cater to hard-to-reach northern regions in Canada.

Rising demand for critical minerals and the need for greater defence initiatives in Canada’s north should be a favourable tailwind for Exchange. Last year was a double-digit growth year, and 2026 is projected to be just as good (or better).

Exchange stock yields 2.8%. It has raised its dividend 19 times in the past 21 years.

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, Fortis, Granite Real Estate Investment Trust, and Pembina Pipeline. The Motley Fool has a disclosure policy.

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