3 Dividend Stocks That Look Worth Adding More Of

These Canadian dividend stocks offer sustainable yields and are likely to maintain their distributions in years ahead.

Key Points
  • These Canadian dividend stocks stand out for offering attractive yields, reliable payouts, or strong long-term dividend growth potential.
  • BCE and SmartCentres REIT offer high and sustainable yields, supported by strategic financial adjustments and resilient cash flows.
  • Canadian Utilities stock has consistently raised dividends for 54 years backed by regulated assets and planned infrastructure investment.

Many Canadian stocks are known for paying dependable dividends, and some have an impressive record not just of maintaining but of steadily increasing those payouts over the years. In this context, I’ll focus on three dividend stocks that offer something compelling right now, whether it’s a valuation that has settled at a level that makes its yield attractive, a consistently high and reliable payout, or strong potential to continue growing its dividend for many years ahead.

With that backdrop, here are three dividend stocks that look worth adding more of today.

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Top dividend stock #1: BCE

BCE (TSX: BCE) is a compelling dividend stock to add now, as the recent share price pullback has boosted its dividend yield. The Canadian communications and media services provider has been regarded as a reliable dividend payer. However, BCE reduced its annual dividend from $3.99 to $1.75 per share amid mounting industry pressures.

While dividend cuts are often interpreted as a negative signal, for BCE, the move was a deliberate shift in capital allocation to strengthen its financial position and maintain sustainable payouts. Facing rising competition, regulatory pressure, and higher costs, BCE is focusing more on balance sheet strength. Redirecting cash toward debt reduction should enhance long-term stability in a capital-intensive sector. Its new dividend policy, targeting 40%–55% of free cash flow, is sustainable in the long run. Moreover, it offers a high yield of 5.3%.

Looking ahead, BCE’s diversified revenue model, spanning wireless services, fibre broadband networks, enterprise solutions, including emerging AI-driven services, and media assets, augurs well for growth. Also, cross-selling opportunities and disciplined capital allocation are expected to support its payouts.

Top dividend stock #2: SmartCentres REIT

SmartCentres REIT (TSX: SRU.UN) is an attractive dividend stock to add for its high and sustainable yield. It pays $0.154 per share monthly, yielding over 6.5% based on its recent price of $28.40.

SmartCentres REIT’s dividends are well protected, supported by a strong real estate portfolio of high-quality retail locations. This helps maintain a steady income even during economic fluctuations, supported by high occupancy and reliable lease renewals.

As of December 31, 2025, SmartCentres’ occupancy remained exceptionally strong at 98.6%. The REIT also demonstrated pricing power, with lease renewals (excluding anchor tenants) delivering 8.4% rental growth in the fourth quarter. Rent collection exceeded 99%, reflecting tenant strength and consistent cash flow.

Overall, SmartCentres REIT’s high occupancy, solid demand for its real estate portfolio, rental growth, and significant pipeline of mixed-use development positions it well to sustain its monthly dividends.

Top dividend stock #3: Canadian Utilities

Canadian Utilities (TSX: CU) is a reliable stock worth adding more of due to its ability to keep growing its dividend. Its earnings are largely generated from rate-regulated and long-term contracted assets, supporting 54 consecutive years of dividend increases.

The utility company’s outlook remains constructive. Management targets a $12 billion investment in regulated utility assets between 2026 and 2030. This should steadily expand its rate base and support predictable earnings growth.

Moreover, Canadian Utilities continues to focus on long-term contracts, enhancing cash flow visibility while limiting volatility. Overall, it is well-positioned to continue growing its dividend, making Canadian Utilities a compelling stock for generating passive income.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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