It can be hard to consider dividend stocks when you don’t know the future. Will that high yield still be there? Is a lower yield worth it? Dividend stocks worth buying on a dip should have a few things investors can look to for clues. These include essential services, recurring cash flow, and a payout investors can understand quickly.
In that case, a volatile market can create rare chances to buy boring-but-powerful income stocks at better prices. That’s why today we’re going to look at TC Energy (TSX: TRP), a dividend giant with a whopping 26-year dividend growth streak, and a solid outlook.
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TRP
TC Energy is one of North America’s major energy infrastructure companies. The dividend stock owns and operates natural gas pipelines, power and energy solutions assets, and energy infrastructure across Canada, the United States, and Mexico. Therefore, it doesn’t need oil prices to soar to make money. Much of its business depends on regulated assets and long-term contracts.
Recent changes only strengthen the company further. Last year, TC Energy spun off its liquids pipeline business into South Bow, leaving TC Energy more focused on natural gas and power.
This shift makes the story cleaner for dividend investors, tying it directly to North American gas demand, power demand, LNG exports, and electrification. In fact, TC Energy expects North American natural gas demand to grow by 45 billion cubic feet per day from 2025 to 2035.
Into earnings
TC Energy started 2026 with a strong first quarter. Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) rose to $3.1 billion in Q1 2026, up from $2.7 billion in Q1 2025. Comparable earnings came in at $1 billion, or $0.99 per share, compared with $0.95 per share a year earlier. Net income attributable to common shares was $0.9 billion, or $0.86 per share. What this all shows is that even in a choppy macro environment, the company still produced more than $3 billion in quarterly comparable EBITDA.
And yet, the company continues to look like a great deal. TC Energy offers a 3.9% dividend yield at writing, with the dividend rising by 3.2% in 2026. Very few TSX companies can point to more than a quarter-century of annual dividend hikes while also guiding for higher EBITDA. So while the valuation can look richer after a strong share-price run, investors may want to buy on dips rather than chase performance.
Looking ahead
TC Energy reaffirmed its 2026 outlook after that strong Q1, so the immediate future looks strong. It also expects 2026 comparable EBITDA of $11.6 billion to $11.8 billion. As for 2026 gross capital expenditures, these should land around $6 billion to $6.5 billion, showing the company still has a large growth pipeline.
As for the dividend, TC Energy expects future dividend growth of 3% to 5%. This gives investors a solid current payout, modest annual dividend growth, and long-term infrastructure. In fact, even $7,000 could create ample income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TRP | $90.34 | 77 | $3.51 | $270.27 | Quarterly | $6,956.18 |
Bottom line
Not all companies are worth buying on a dip, but TC Energy stock seems to be one to watch. It may not offer the excitement of a small-cap growth stock, but if the stock pulls back with the broader market, long-term dividend investors may want to take a close look before the dip disappears.
