Dividend-paying companies share a portion of their profits with shareholders through regular dividend payments. These regular payouts provide investors with stable and predictable cash flows. Additionally, such companies typically operate well-established businesses that generate strong and reliable cash flows, making them less vulnerable to market volatility. As a result, they not only offer consistent passive income but also add stability to investors’ portfolios. Against this backdrop, let’s look at three top stocks that I believe all investors should have in their portfolios.
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Fortis
Fortis (TSX:FTS) is a utility company that operates nine regulated businesses across the United States, Canada, and the Caribbean, serving approximately 3.5 million customers. With about 95% of its operations focused on low-risk transmission and distribution and a predominantly regulated asset base, the company’s financials remain largely insulated from economic cycles and market volatility. Supported by these stable cash flows, Fortis has increased its dividend for the last 52 years and currently offers a forward yield of around 3.24%.
Looking ahead, the company is expanding its asset base to meet rising demand for electricity and natural gas. It plans to invest $28.8 billion between 2026 and 2030, targeting an annualized rate-base growth rate of 7% to reach $57.9 billion. Additionally, its ongoing efforts to enhance efficiency and optimize maintenance could strengthen its financial performance.
Backed by these growth initiatives, Fortis’s management anticipates annual dividend increases of 4–6% through 2030, making it a compelling option for long-term, income-focused investors.
Enbridge
Another dividend stock that stands out as a solid choice for investors is Enbridge (TSX:ENB). The company derives around 98% of its cash flows from cost-of-service contracts and regulated assets, ensuring a high level of stability. Additionally, approximately 80% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) is indexed to inflation, helping protect its financials from rising costs. Backed by these resilient business models, Enbridge has met or exceeded its financial guidance for 20 consecutive years.
The company also boasts an impressive dividend track record, having paid dividends for more than 70 years and increased them for 31 consecutive years. It currently offers a forward dividend yield of about 5.31%, making it attractive for income-focused investors.
Looking ahead, Enbridge has identified roughly $50 billion in growth opportunities through the remainder of the decade and plans to invest $10–$11 billion annually to capitalize on them. Supported by these investments, management expects adjusted EBITDA, adjusted EPS (earnings per share), and distributable cash flow per share to grow at a mid-single-digit rate over the coming years.
Given its stable cash flows, strong growth pipeline, and consistent dividend increases, Enbridge appears well-positioned to sustain dividend growth, making it an excellent long-term investment.
Canadian Natural Resources
My final pick is Canadian Natural Resources (TSX:CNQ), which operates a portfolio of large, low-risk, high-value reserves that require relatively little capital reinvestment. Its diversified and balanced asset base, combined with efficient operations, helps keep costs under control, enabling the company to generate strong profitability and robust free cash flow across economic cycles. Supported by these solid cash flows, CNQ has increased its dividend at an impressive annualized rate of 21% over the past 25 years and currently offers a forward yield of around 3.66%.
Looking ahead, oil and natural gas will remain essential components of the global energy mix despite the ongoing transition toward cleaner energy sources. CNQ is well-positioned to benefit from this trend, given its extensive reserve base of over five billion barrels of oil equivalent and a proven reserve life index of 32 years. A significant portion of these reserves consists of high-value petroleum products, further supporting its long-term earnings potential.
Additionally, the company continues to strengthen its asset base, with plans to invest approximately $6.4 billion this year. These investments should enhance its production capabilities and reinforce cash flow resilience. Given its strong fundamentals and disciplined capital allocation, CNQ appears well-positioned to sustain healthy dividend growth in the years ahead.
