Many Canadian companies offer dividends, but only a select few are reliable investments to hold when markets get bumpy. These dividend-paying stocks are supported by businesses with strong fundamentals and defensive business models that allow them to remain stable even when broader markets become uncertain.
Such companies tend to operate in resilient sectors and maintain consistent revenue streams, enabling them to continue generating profits across varying economic conditions. Their ability to sustain operations and maintain profitability during downturns makes them appealing to investors seeking stability and income. In addition, many of these firms have long track records of paying and increasing dividends.
Against this backdrop, here are two Canadian dividend stocks that make sense to hold when markets get bumpy.
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Top Canadian dividend stock #1: Fortis
Fortis (TSX: FTS) is one of the top Canadian dividend stocks that makes sense to hold when markets get bumpy. Fortis is an electric utility company focused on transmission and distribution. Its defensive business model, supported by a regulated asset base, enables it to generate predictable cash flow, supporting consistent dividend payments and growth even when broader markets experience uncertainty.
Fortis has increased its dividend for more than five decades. This reflects the reliability of its payouts. In November 2025, Fortis raised its dividend by 4.1%, marking its 52nd consecutive year of dividend growth.
Looking ahead, Fortis plans to invest $28.8 billion over the next five years, primarily in regulated utility infrastructure. The strategy focuses on expanding regulated assets rather than pursuing large, complex development projects. By allocating capital in this manner, Fortis aims to grow its earnings base while minimizing execution risk.
These investments are expected to expand Fortis’s consolidated rate base to approximately $58 billion by 2030. Growth in the regulated asset base should support steady earnings expansion and enable the company to increase its dividend at an annual rate of 4% to 6%.
Rising electricity demand strengthens Fortis’s long-term outlook. Increased consumption from sectors such as manufacturing and data centres is expected to support continued growth. In addition, the company’s divestment of non-core assets has improved its financial position. Together, these factors position Fortis as a stable income-generating investment.
Top Canadian dividend stock #2: TC Energy
TC Energy (TSX: TRP) is an attractive dividend stock to buy even when the market gets bumpy. The company operates one of North America’s largest natural gas transportation and storage networks, complemented by a portfolio of power generation assets. Its extensive infrastructure connects low-cost supply basins with major North American and international export markets, enabling the business to generate steady and predictable cash flows.
TC Energy’s dividend payments are supported by its resilient business model. A large portion of its operations is supported by long-term commercial agreements, including take-or-pay and cost-of-service contracts. These arrangements significantly reduce the company’s exposure to fluctuations in commodity prices and allow it to generate revenue even during periods of market uncertainty or energy price volatility.
This stable and largely regulated cash flow base has supported TC Energy’s long record of shareholder returns. The company has increased its dividend for 26 consecutive years.
Looking ahead, several structural trends are expected to support TC Energy’s long-term growth. Rising electrification, expanding liquefied natural gas (LNG) exports, and increasing energy demand from data centres are all contributing to stronger demand for natural gas infrastructure. Management expects EBITDA to grow between 6% and 8% in 2026, followed by annual growth of approximately 5% to 7% over the subsequent three years.
In addition, a pipeline of long-term contracted projects is expected to support continued earnings expansion while helping reduce debt levels. These developments should strengthen the company’s financial position and support ongoing dividend growth.
