5 Dividend Stocks Everyone Should Own

Maximize your investment income with these top dividend stocks in Canada. Discover the power of reliable dividend stock investing.

Key Points
  • Canadian investors have a selection of high-quality dividend stocks, such as Canadian Natural Resources, known for low costs and strong free cash flow, offering a 3.8% yield with a strong dividend growth history.
  • Royal Bank of Canada is a leading financial institution with a solid banking franchise, priced highly after significant stock gains, but is considered a safe investment in banking with a 2.6% yield.
  • Choice Properties REIT, Thomson Reuters, and Fortis provide diverse exposure to real estate, software, and utilities, respectively, with noteworthy dividend yields and growth records for balanced income portfolios.

Canadian investors are fortunate that Canada has an overabundance of quality dividend stocks to choose from. If you like investment income generating on autopilot in your portfolio, these are five top stocks worth owning for the long-term.

dividend stocks are a good way to earn passive income

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A top energy stock for dividends

With a market cap of $141 billion, Canadian Natural Resources (TSX: CNQ) is Canada’s largest energy producer.

It is also arguably one of the best producers. This is evidenced by its extremely low breakeven cost (around $40 per barrel average), low corporate decline rate, multiple decades of reserves, and persistently strong free cash flow generation.

However, that does come at a price. When the market rushes towards oil stocks, Canadian Natural is one of the first to rise. Its stock is up 46% in 2026 and 58% over the past year. It is arguably not cheap here.

However, if you want a dividend yield of 3.8% and attractive dividend growth (it has a 26-year dividend growth record), you could still pick up shares now.

A top bank

Royal Bank of Canada (TSX: RY) is another top-tier stock that Canadians shouldn’t ignore. With a market cap of $351 billion, it is Canada’s largest stock.

This bank has a leading retail and commercial banking franchise, along with strong capital markets and wealth management segments. Other Canadian banks have made mistakes. But, it has stuck to its core competencies and captured market share.

With its stock up 43% over the past year, it is rather pricey. Its yield has compressed to only 2.6%, which is lower than average. As a result, you may want to wait to add to this stock on a broader market pullback. However, it’s probably the safest bet you can make in the Canadian banking industry.

A top REIT

If you want exposure to real estate, Choice Properties Real Estate Investment Trust (TSX: CHP.UN) is a relatively low-risk choice for property income. With a market cap of $10.9 billion, it is the largest REIT in Canada.

With this stock you get exposure to grocery-anchored retail centres, well-located industrial properties, and mixed-use developments. It is about to get considerably larger after it acquires the attractive retail assets of First Capital REIT.

This dividend stock yields 5.2%. It just recently resumed its dividend growth trajectory, so there could be income upside as well.

A top tech stock

If you want income, growth and value, you might want to look at Thomson Reuters (TSX: TRI). With a market cap of $38 billion, it is one of Canada’s largest software companies.

Its stock has been pressured on worries of artificial intelligence disruption. While it is a concern to monitor, AI already looks like it could be a net positive for this crucial provider of legal and accounting software.

Thomson Reuters earns a 2.9% yield. It has a 33-year record of consecutively increasing its dividend, so your yield on cost is likely to grow. It is trading at its lowest valuation in nearly a decade right now.

A top utility stock for growing dividends

No dividend portfolio would be complete without Fortis (TSX: FTS). This stock has a market cap of $39 billion, making it the largest pure-play utility stock in Canada.

Ninety-nine percent of its assets are regulated. These are transmission and distribution assets that form the backbone of the energy grid in the regions they operate.

This stock is up 16% over the past year. FTS is not cheap either. However, you are buying a stock with a 52-year record of annually raising its dividend. It yields 3.3% today. If you want safety in your portfolio, it is the ideal dividend stock to hold long term.

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources, First Capital Real Estate Investment Trust, Fortis, and Thomson Reuters. The Motley Fool has a disclosure policy.

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