Dividend investing helps individuals build passive income to supplement active income. The stock market carries risks, but select constituents of the utilities sector provide steady dividend earnings in any economic climate.
The TSX has only two Dividend Knights. Canadian Utilities (TSX:CU) and Fortis (TSX:FTS) hold the title owing to more than 50 consecutive years of dividend increases. Emera (TSX:EMA) is a strong contender that could possibly meet the minimum requirement of 50 years and wear a crown.
Any of these three Canadian utility stocks is worth having if you’re a risk-averse, income-focused investor. Remember, however, the sector is sensitive to interest rates. Their share prices may dip when rates rise, but dividends usually stay steady.
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Record holder
Canadian Utilities is best for maximum safety, given its long history of dividend increases. This record holder has raised dividends for 54 consecutive years. At $50.81 per share, the dividend yield is 3.62%. The payout is not the highest in the market, but it offers a solid foundation for capital preservation and pension-like income.
This $13.8 billion diversified global energy infrastructure corporation operates primarily in Canada and Australia, providing electricity and natural gas transmission, distribution, energy generation, and storage. Regulated utilities help finance infrastructure investments, along with debt.
The contracted investments of Canadian Utilities are regulated and long term in nature. With this setup, dividends grow in line with sustainable earnings growth. Management projects that the $7.3 billion in investments in regulated utilities from 2025 to 2027 will contribute significant earnings and cash flows.
Dividend-growth visibility
Fortis owns and operates a diversified portfolio of utility businesses in Canada, the U.S., and the Caribbean. The dividend-growth streak is 52 years, with commitments for further increases in the near future. If you invest today, FTS trades at $79.72 per share and pays a 3.18% dividend.
The $40.6 billion regulated electric and gas utility company invests primarily in infrastructure projects, grid modernization, and clean energy transitions to support business growth. Its massive five-year $28.8 billion capital plan projects a 7% rate base growth during the period. Fortis targets dividend growth of 4% to 6% annually through 2030.
Future royalty
Emera is well-positioned to reach the 50-year milestone and become the next royalty. The $22.3 billion energy holding company serves customers across North America and the Caribbean. Its focus on rate-regulated utilities assures long-term earnings growth, strong cash flows, and dividend increases.
The 1% dividend increase in September 2025 marked EMA’s 19th consecutive annual dividend hike. At the current price of $73.95, the dividend offer is 3.94%. According to its President and CEO, Scott Balfour, Emera forecasts a 7% to 8% rate base growth through 2029.
In 2025, Emera’s adjusted net income exceeded $1 billion for the first time on an $8.8 billion in revenue. The new $20 billion capital plan from 2026–2030 focuses on Florida and grid modernization. Management’s annual dividend-growth target within the period is 1% to 2%.
Defensive anchors
Canadian Utilities, Fortis, and Emera are defensive anchors and reliable paychecks providers. As of this writing, the three utility stocks, as well as the utilities sector, outperform the broader market.
