Income investors are looking for regular income that’s reliable and growing. It’s a simple enough strategy, but investors may struggle to find the right dividend stocks in order to make this goal a reality. In this article, I’ll discuss two Canadian companies that have an impressive track record on both of these fronts and one that has a rapidly improving dividend profile and outlook.
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Canadian Natural Resources – A 3.7% dividend yield
The price of oil continues to trade at around US $100. This has been extremely beneficial to oil stocks like Canadian Natural Resources Ltd. (TSX:CNQ).
Canadian Natural is one of Canada’s premier oil and gas companies with a strong asset base. This asset base has resulted in significant long-life, low-decline production. In fact, the company’s assets have a life of more than 40 years with minimal capital investment.
What this means is that Canadian Natural Resources stock is an extremely profitable, relatively low-risk oil and gas stock with strong returns. And this has translated into strong and reliable dividends for income investors. In fact, CNQ stock has 26 consecutive years of dividend growth under its belt – with a compound annual growth rate (CAGR) of 20% over that time.
Canadian Natural Resources stock continues to increase its dividend payout and is currently yielding a generous 3.7%.
Fortis – A 3.2% dividend yield
Fortis Inc. (TSX:FTS) is another Canadian company that has a long history of strong shareholder returns and consistently rising dividends. As a utility company that receives the benefit of regulated revenues, Fortis stock is one of only a few companies as consistent and dependable.
This utility stock is one of North America’s leading utility companies, with nine regulated utilities in Canada, the U.S., and the Caribbean. It’s a low-risk business that benefits from stable cash flows and earnings due to its regulated nature. In good and bad economies, Fortis maintains its predictable and resilient revenue and earnings profile.
In the last 51 years, Fortis stock has increased its dividend annually. Today, Fortis stock is yielding 3.3%, amidst a rising demand environment for utilities, driven by a rising North American population. We can expect dividend growth of between 4% to 6% through 2030.
Altagas – A 2.5% dividend yield
Altagas Ltd. (TSX:ALA) operates in two segments – utilities and midstream. These segments each have their own growth and risk profiles, making Altagas a well-diversified, stable opportunity for investors.
The utilities segment is Altagas’ defensive segment, benefiting from stable, regulated revenues. Its midstream segment is the segment that’s rapidly growing, as liquified petroleum exports such as butane and propane are in high demand globally. Global energy needs are growing. North American infrastructure to support these global needs is also growing. And Altagas is a big part of this.
All of this is supporting Altagas’ dividend payments to its shareholders. In its most recent quarter, Q1 2026, the company increased its annual dividend per share by 6% to $1.34. Altagas stock is currently yielding 2.5%.
The bottom line
The Canadian companies discussed in this article are all very well-suited for income investors, as they continue to provide reliable and growing dividends.
These companies are benefiting from the rise in energy needs both domestically and globally. This is a long-term, secular trend that has staying power. As such, I believe that these stocks have a strong runway of long-term growth ahead of them.
