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.

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.

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