Top Canadian dividend stocks are reliable investments that generate worry-free passive income year after year. Many TSX stocks have a multi-decade track record of paying and growing dividends, making them the top investment in any income portfolio. However, the recent rally in shares of most of these high-quality dividend payers has driven their valuations higher. Thus, waiting for a dip to invest in these stocks could be a smart strategy.
With this background, here are two Canadian dividend stocks to snap up on any dip.
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Fortis
Fortis (TSX: FTS) is one of the top Canadian stocks worth snapping up on any dip. The utility company’s payouts are supported by its rate-regulated assets. About 95% of its assets are in regulated transmission and distribution, which limits exposure to commodity price swings and economic cycles. This results in stable, predictable earnings, supporting steady payouts.
Over the past three years, Fortis has grown its rate base and earnings per share by roughly 6.5% annually. This steady expansion has helped Fortis to consistently increase its dividend year after year. Notably, the utility company has increased its dividend for more than five decades. To be precise, including a 4.1% hike last November, Fortis has raised its dividend for 52 consecutive years.
Fortis’s outlook remains solid. Its $28.8 billion five-year capital plan is expected to expand the rate base from $42.4 billion in 2025 to $57.9 billion by 2030. This will drive its bottom line, supporting continued dividend growth of 4%–6% annually.
Moreover, rising electricity demand, driven by the rapid expansion of data centres and the push to electrify vehicles, augurs well for future growth. Also, Fortis’s investments in the renewable energy space provide incremental growth opportunities.
Overall, the steady expansion of its rate base, predictable cash flows, and significant demand for electricity position Fortis to keep growing its dividend in the years ahead. However, given its recent share price strength, waiting for a pullback could offer a better entry point.
TC Energy
TC Energy (TSX: TRP) is a compelling Canadian dividend stock to buy on the dip. The company has a long track record of paying and growing dividends, supported by its vast natural gas transmission and storage network. TC Energy connects low-cost supply regions to high-demand markets and export hubs, which drives its utilization and supports higher dividend payments.
Supporting its dividend is the company’s resilient business model. Most of its earnings come from regulated operations or long-term, take-or-pay contracts, which limit exposure to commodity price swings. This makes revenue more predictable and reduces overall risk. Thanks to its resilient earnings, TC Energy has raised its dividend for 26 straight years.
TC Energy’s future payouts look sustainable. Ongoing electrification, rising LNG exports, and growing energy needs from data centres are expected to boost demand for natural gas infrastructure. The company projects EBITDA growth of 6%–8% in 2026, followed by 5%–7% annually over the next few years.
Its $23 billion secured capital program adds further visibility, with long-term contracts supporting future cash flow and gradual debt reduction. This should enable continued dividend growth of 3%–5% per year.
That said, the stock has already climbed significantly, so waiting for a dip may offer a more attractive entry point.
