Rising oil and natural gas prices, along with escalating geopolitical tensions in the Middle East, have rattled investors, pulling the S&P/TSX Composite Index down 1.3% on Friday. Amid this uncertainty, investors can strengthen their portfolios by adding quality dividend stocks.
Thanks to their established business models and reliable payouts, these four TSX stocks are better positioned to withstand economic volatility, making them attractive buys in the current environment.
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Enbridge
Enbridge (TSX: ENB) operates a diversified energy infrastructure business that includes contracted midstream assets, regulated utility operations, and renewable power facilities supported by long-term power purchase agreements (PPAs). Approximately 98% of its earnings come from contracted or regulated assets, while nearly 80% of its EBITDA (earnings before interest, taxes, depreciation, and amortization) is protected by inflation-linked arrangements. As a result, the company’s financial performance is relatively resilient to macroeconomic uncertainty, commodity price swings, and broader economic cycles.
Backed by stable cash flows and a strong business model, Enbridge has paid dividends for more than 70 years. The company has also increased its dividend for 31 consecutive years and currently offers a forward yield of around 5.1%. Moreover, its growing asset base and rising demand for energy infrastructure services could support future earnings growth, strengthening its ability to continue raising dividends over time.
Fortis
Second on my list is Fortis (TSX: FTS), which serves 3.5 million customers across Canada, the United States, and the Caribbean, meeting their electric and natural gas needs. With a regulated asset base and a majority of its operations focused on low-risk transmission and distribution businesses, the company generates stable, predictable earnings that are less vulnerable to macroeconomic volatility. Supported by this reliable business model, Fortis has increased its dividend for 51 consecutive years, while its forward yield stands at 3.4%.
Meanwhile, the utility giant continues to expand its asset base through its planned $28.8 billion capital program. These investments could grow its rate base at an annualized rate of 7%, reaching $57.9 billion by the end of 2030. With these expansion projects projected to support steady earnings growth in the coming years, Fortis management expects to increase its dividend by 4%–6% annually through 2030, making the stock an attractive option in today’s uncertain market environment.
Canadian Natural Resources
Canadian Natural Resources (TSX: CNQ) is a leading oil and natural gas producer operating predominantly in Canada, the North Sea, and Offshore Africa. The company has large, high-quality, and relatively low-risk reserves that require lower capital reinvestment. Besides, its efficient operations have reduced its breakeven costs, supporting strong margins and cash flows. Backed by this solid financial strength, the company has raised its dividend at an annualized rate above 20% over the last 26 years and currently offers a forward yield of 3.8%.
Looking ahead, CNQ has proven reserves exceeding 5 billion barrels of oil equivalent, with a reserve life index of 32 years, underscoring the longevity of its asset base. Further, the company expects to invest $6.9 billion this year to strengthen its production capabilities. Further, the elevated crude oil prices amid the ongoing geopolitical tensions could continue to support CNQ’s financial growth, thereby allowing it to maintain dividend growth.
Bank of Nova Scotia
My final pick would be Bank of Nova Scotia (TSX: BNS), which has paid dividends without interruption since 1833. The bank’s diversified revenue streams, supported by a broad range of financial services operations across multiple countries, generate stable and predictable cash flows that help sustain its consistent dividend payments. In addition, Scotiabank has increased its dividend at an annualized rate of 4.7% over the past decade and currently offers a forward dividend yield of around 4.2%.
Meanwhile, the bank is sharpening its focus on its highly profitable and lower-risk North American operations while reducing exposure to riskier Latin American markets. This strategic shift could support steadier earnings growth and improve the consistency of its cash flows over the long term. Additionally, persistent inflationary pressures may lead central banks to keep interest rates elevated for longer, which could benefit Scotiabank’s core lending business by supporting stronger net interest margins.
