2 Dividend Stocks That Look Like Obvious Buys Right Now

These dividend stocks have solid fundamentals, a strong history of dividend growth, and the financial strength to grow their payouts.

Key Points
  • Dividend stocks offer stability in uncertain markets, and companies with strong fundamentals and long histories of dividend growth are attractive for reliable income.
  • Fortis stands out as a defensive utility investment, with 52 consecutive years of dividend increases and a major infrastructure plan expected to support 4–6% annual dividend growth.
  • Bank of Montreal remains a dependable dividend payer, with 197 years of uninterrupted dividend payments and continued growth supported by its diversified operations and technology investments.

Amid ongoing macroeconomic and geopolitical uncertainty, dividend stocks look like obvious buys right now for stability and income. Notably, TSX stocks with solid fundamentals, a strong history of steadily increasing dividends, and the financial strength to sustain and grow their payouts deserve close attention. These types of stocks can provide dependable, worry-free income during uncertain times.

Against this background, here are two dividend stocks that look like obvious buys right now.

money goes up and down in balance

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Dividend stock #1: Fortis

Fortis (TSX: FTS) stock looks like an obvious buy right now. Fortis operates mainly in electricity transmission and distribution, a classic defensive sector. Electricity is an essential service, and demand tends to remain steady regardless of economic ups and downs. Because most of Fortis’s utilities are regulated, the company enjoys highly predictable revenue and cash flow. That stability forms the backbone of its reliable dividends and steady long-term growth.

What truly sets Fortis apart is its extraordinary dividend track record. The utility company has increased its dividend for more than half a century. In November 2025, Fortis raised its dividend by another 4.1%, marking 52 consecutive years of dividend growth. That streak highlights the resilience of its business model and management’s commitment to rewarding shareholders.

Looking ahead, Fortis is pursuing growth through disciplined infrastructure investment. The company plans to deploy about $28.8 billion over the next five years, with the majority directed toward regulated utility projects. By expanding and modernizing its regulated asset base, Fortis is strengthening the low-risk foundation that drives its earnings.

These investments are expected to push Fortis’s consolidated rate base to roughly $58 billion by 2030. For regulated utilities like Fortis, a larger approved asset base translates into higher earnings, supporting annual dividend growth of 4% to 6% during the same period.

At the same time, long-term electricity demand is strengthening. Industries such as advanced manufacturing and rapidly expanding data centres require massive amounts of power, creating a favourable backdrop for utilities like Fortis.

Overall, Fortis’s steady earnings expansion and sustainable payouts make it an obvious buy.

Dividend stock #2: Bank of Montreal

The largest Canadian bank stocks have long been reliable dividend payers. Many of these institutions have delivered consistent dividend payments for decades, with several maintaining distributions for more than a century. This longstanding track record reflects their ability to generate strong earnings and a commitment to returning capital to shareholders.

Among these institutions, Bank of Montreal (TSX: BMO) stands out as a dependable dividend payer. The Canadian banking giant has distributed dividends for 197 consecutive years. Its payouts reflect its durable earnings model and shareholder-focused capital allocation strategy.

Recently, BMO raised its quarterly dividend to $1.67 per share, a 5% year-over-year increase. Over the past 15 years, the bank has grown its dividend by 5.7% annually.

Behind the solid payouts is BMO’s diversified business model. The bank generates revenue across several key segments, including personal and commercial banking, capital markets, and wealth management. At the same time, efforts to strengthen asset quality, improve efficiency, and maintain a solid balance sheet augur well for long-term earnings growth.

BMO continues to invest in technology and artificial intelligence (AI) to modernize operations and elevate the client experience. These initiatives aim to boost productivity, reduce operating costs over time, and deepen customer relationships. As these investments begin to deliver results, they could further strengthen BMO’s earnings power, supporting its payouts.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

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