Despite the sharp rebound in Canadian equity markets, uncertainty about the outcome of ongoing peace talks between the United States and Iran persists. In this environment, investors may consider adding high-quality dividend-paying stocks to generate steady, reliable passive income and enhance overall portfolio stability.
Against this backdrop, let’s take a closer look at the following four top Canadian stocks that I believe are compelling buys right now.
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Fortis
Fortis (TSX: FTS) operates a predominantly regulated utility business, with the majority of its assets tied to the low-risk transmission and distribution of electricity and natural gas across Canada, the United States, and the Caribbean. This regulated structure makes the company’s financial performance less sensitive to market volatility, enabling it to generate stable, predictable cash flows. Backed by this consistency, Fortis has increased its dividend for 52 consecutive years. It currently offers a forward yield of about 3.29%.
Looking ahead, demand for electricity and natural gas continues to rise, supported by economic expansion, the electrification of transportation, and the growing need for power from AI-driven data centres. To capitalize on these trends, Fortis is advancing a $28.8 billion capital investment plan to expand its rate base. These investments could grow its rate base at an annualized rate of 7%, reaching $57.9 billion by 2030, thereby supporting steady earnings growth.
In line with this outlook, management plans to increase dividends by 4–6% annually through 2030, reinforcing Fortis’s appeal as a reliable long-term income investment.
Enbridge
Enbridge (TSX: ENB) is another compelling dividend stock to consider, especially for income-focused investors. The company has increased its dividend for 31 consecutive years and currently offers an attractive yield of about 5.38%. Enbridge operates a diversified energy infrastructure business that includes a regulated midstream network, natural gas utilities, and renewable energy assets supported by long-term power-purchase agreements.
Its earnings profile is highly stable, with roughly 98% derived from regulated assets or long-term contracts and about 80% indexed to inflation. This structure reduces exposure to commodity price fluctuations and broader market volatility, enabling consistent cash flow generation.
Looking ahead, growing oil and natural gas production and consumption across North America continue to support demand for Enbridge’s services. The company has also identified $50 billion in growth opportunities and plans to invest $10–$11 billion annually, positioning it well for steady earnings and dividend growth.
Bank of Nova Scotia
Bank of Nova Scotia (TSX: BNS) is another attractive option for income-focused investors, backed by one of the longest dividend track records in the market, with uninterrupted payouts since 1833. Its diversified financial services footprint across multiple geographies supports stable and reliable cash flows, enabling consistent dividend payments. Over the past decade, the bank has increased its dividend at a 4.7% compound annual growth rate and currently offers a forward yield of about 4.19%.
The bank’s operating performance remains solid, with adjusted earnings per share rising 16.5% to $2.05 in its first-quarter fiscal 2026 results, driven by strength across its core business segments. In addition, the divestment of banking operations in Colombia, Costa Rica, and Panama has helped reduce its allowance for credit losses and improve overall asset quality.
Strategically, Scotiabank is focusing on expanding its presence in higher-margin, lower-risk North American markets. This shift could enhance earnings stability and support sustainable long-term growth, thereby reinforcing its ability to deliver consistent, growing dividends.
Canadian Natural Resources
My final pick is Canadian Natural Resources (TSX: CNQ), an energy producer with an impressive history of dividend growth. It has grown its dividend for 26 consecutive years at an annualized rate of around 20%, supported by its portfolio of large, high-quality, and low-risk reserves that require relatively modest reinvestment. Its operational efficiency has also helped lower costs, strengthening earnings and cash flows, and enabling consistent dividend increases. It currently offers a forward yield of approximately 4.25%.
CNQ also boasts proven reserves of more than 5 billion barrels of oil equivalent, translating into a reserve life index of about 32 years. The company continues to enhance its production capacity through planned capital investments of $6.9 billion this year.
With oil prices remaining relatively elevated despite recent volatility, higher production levels combined with supportive pricing could further boost CNQ’s financial performance, reinforcing its ability to sustain and grow dividends over the long term.
