2 Canadian Dividend Giants I’d Buy With Rates on Hold

Given their strong financial performance, consistent dividend track records, and promising growth outlook, these two Canadian dividend stocks stand out as compelling choices for income-focused investors.

| More on:
Key Points
  • Enbridge and Bank of Nova Scotia are top choices for generating steady passive income, offering reliable dividend payouts and robust yields anchored by their strong business models and resilient financial performance.
  • Enbridge benefits from its contracted energy infrastructure and inflation-indexed earnings, while Bank of Nova Scotia's diversified global services and strategic North American focus provide a solid foundation for sustained income growth, making both stocks highly appealing to income-focused investors.

Bank of Canada held its benchmark interest rate steady at 2.25% during its March meeting, marking its second pause of the year. This decision highlights the central bank’s cautious approach as it navigates a backdrop of moderating economic growth and still-uncertain inflation trends.

With interest rates remaining on hold, investors may want to turn to high-quality dividend stocks to generate steady, reliable passive income – offering both financial stability and a potential hedge against inflation.

In this context, let’s explore two leading Canadian dividend giants with strong dividend-growth histories and attractive yields.

holding coins in hand for the future

Source: Getty Images

Enbridge

Enbridge (TSX: ENB) operates a predominantly contracted midstream business that transports oil and natural gas across North America, providing strong visibility into its earnings. In addition, the company owns low-risk natural gas utility assets and a growing portfolio of renewable energy projects supported by long-term power purchase agreements (PPAs). Notably, about 80% of its earnings are indexed to inflation, helping shield its cash flows from rising costs and supporting consistent financial performance across market cycles.

Enbridge’s track record further underscores its reliability. The company has met or exceeded its financial guidance for the past 20 years. It has also paid dividends for more than seven decades and increased its dividend for 31 consecutive years. ENB stock currently offers an attractive forward yield of around 5.4%.

Looking ahead, demand for oil and natural gas remains resilient even as the global energy mix gradually evolves. Continued growth in production and consumption in North America could support demand for Enbridge’s infrastructure. The company has also identified a robust $50 billion project pipeline and plans to invest $10–$11 billion annually to advance these opportunities. Backed by these initiatives, management expects adjusted EBITDA and distributable cash flow per share to grow at a steady single-digit pace in the coming years.

Given its stable business model, strong growth pipeline, and proven dividend track record, Enbridge appears well-positioned to continue delivering reliable, growing income, making it a compelling choice for income-focused investors.

Bank of Nova Scotia

Another strong option for income-focused investors is Bank of Nova Scotia (TSX: BNS), a global financial institution that offers a wide range of services in more than 55 countries. The bank’s diversified revenue base supports steady cash flows across economic cycles, enabling the bank to maintain an impressive dividend track record dating back to 1833. Over the past decade, it has grown its dividend at an annualized rate of 4.7% and currently offers a forward yield of about 4.2%.

The bank’s financial performance has also shown improvement this year. In its latest first-quarter results for fiscal 2026, adjusted earnings per share rose 16.5%. Meanwhile, its CET1 (common equity tier 1) ratio increased by 10 basis points to 13.3%, supported by earnings growth, net of dividends, and the positive impact from divesting certain Latin American operations. A higher CET1 ratio reflects a stronger capital base and improved resilience during periods of economic stress.

Strategically, Scotiabank is sharpening its focus on North American markets while scaling back exposure to lower-return, higher-risk Latin American markets. This shift could enhance earnings stability, support sustainable long-term growth, and strengthen its ability to continue delivering consistent and growing dividends.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Bank of Nova Scotia and Enbridge. The Motley Fool has a disclosure policy.

More on Dividend Stocks

House models and one with REIT real estate investment trust.
Dividend Stocks

Your GIC Is Maturing: Here’s Where I’d Put $10,000 for More Income

When GIC rates fall, a grocery-anchored REIT like Crombie can offer higher monthly income with some growth potential.

Read more »

top TSX stocks to buy
Dividend Stocks

1 Canadian Dividend-Growth Stock Built to Deliver in Any Market Condition

Alimentation Couche-Tard (TSX:ATD) stock looks like a dividend-growth play that can do well in most climates.

Read more »

investor looks at volatility chart
Dividend Stocks

A Top TSX Dividend Stock to Buy on Pullbacks

This high-yield stock offers good prospects for dividend growth.

Read more »

A solar cell panel generates power in a country mountain landscape.
Dividend Stocks

1 Canadian Dividend Stock Down 19% to Buy and Hold Forever

This Canadian dividend stock is down about 19% from its 52-week high, but its record FFO, a 5.1% dividend yield,…

Read more »

A woman stands on an apartment balcony in a city
Dividend Stocks

Why I’m Bullish on This TFSA Dividend Stock Yielding 2.7% Monthly

Boardwalk REIT’s monthly distributions, resilient operating growth, and discounted valuation could make it an attractive TFSA stock to buy now.

Read more »

you're never too young or old to start investing in stocks
Dividend Stocks

3 Best Dividend Stocks in Canada for Beginner Investors

A look at three of the best dividend stocks in Canada for beginner investors, including their yields and why they…

Read more »

Concept of rent, search, purchase real estate, REIT
Dividend Stocks

Why I’m Watching This 4.6% Dividend Stock That Pays Monthly Cash

Sienna Senior Living offers investors a 4.6% dividend yield with monthly payouts, while its recent share price pullback makes the…

Read more »

Canadian investor contemplating U.S. stocks with multiple doors to choose from.
Dividend Stocks

Enbridge vs. Telus: Which Is the Better Dividend Stock to Own Through 2026?

Enbridge and Telus both offer attractive yields, but their financials and underlying fundamentals reveal a big difference in dividend stability…

Read more »