The Bank of Canada recently held interest rates steady at 2.25%, citing concerns about geopolitical conflicts and uncertainty about global trade. When interest rates remain on hold for longer than expected, investors often start prioritizing stability, dependable cash flow, and reliable income. That’s exactly why dividend stocks tend to attract more attention during uncertain economic periods. The right companies can reward shareholders with stable payouts while also offering long-term growth potential.
Today, two Canadian dividend giants appear especially well-positioned for that kind of environment. One company operates a dominant rail network that remains essential to North American trade and supply chains, while the other generates highly predictable revenue through regulated utility operations. Both businesses continue investing in long-term infrastructure growth while maintaining dependable dividend payouts backed by strong fundamentals.
In this article, I’ll explain why these large-cap Canadian dividend stocks could be smart long-term buys while rates remain on hold.
Governor Tiff Macklem; Source: Bank of Canada
Canadian National Railway stock
Few companies are as closely tied to the North American economy as Canadian National Railway (TSX: CNR), or CN. The Montreal-based transportation giant operates a rail network spanning about 20,000 miles, connecting Canada’s east and west coasts with the U.S. Midwest and Gulf Coast.
That extensive network allows this transportation giant to move more than 300 million tons of goods every year, including natural resources, agricultural products, manufactured goods, and consumer products. This diversified business model helps CN remain resilient across different economic environments.
After climbing 22% over the last six months, its stock currently trades at $160.67 per share, giving the company a market cap of roughly $98.2 billion. The recent rally in CN stock shows investor confidence in its operational strength and long-term growth prospects. At the current market price, the stock also offers a dividend yield of 2.3%.
The company’s recent financial performance has remained solid despite broader economic uncertainty. In the first quarter of 2026, Canadian National Railway posted record first-quarter revenue ton miles of 61.8 billion, while its free cash flow jumped 44% year-over-year (YoY) to $900 million. The company also delivered its best first-quarter employee productivity in the last five years and achieved record first-quarter fuel efficiency.
Notably, CN continues upgrading rail infrastructure and technology systems while planning to invest about $2.8 billion in its 2026 capital program. These investments are important because they could strengthen its competitive advantage while positioning it to benefit from long-term growth in trade and supply chain activity across North America.
Combined with its strong balance sheet and dominant rail network, CN stock looks well-positioned for continued long-term growth.
Fortis stock
For investors seeking even more stability, Fortis (TSX: FTS) could be one of the most dependable dividend stocks on the TSX. This utility firm operates regulated electric and gas utilities across North America, giving it highly predictable earnings and cash flow. It is important to note that utility stocks like Fortis look even more attractive when interest rates remain stable because investors value dependable income and lower volatility during uncertain periods.
After climbing 18% over the last year, Fortis stock currently trades at $78.20 per share with a market cap of about $40 billion. It has a dividend yield of 3.3% at this price. Interestingly, the company has increased its dividend for more than five decades, making it really attractive for income-focused investors looking for reliability during uncertain markets.
Fortis also continues investing heavily in infrastructure expansion projects across its utility operations. In the first quarter of 2026 alone, the company invested $1.4 billion in capital projects while keeping its $5.6 billion annual capital plan on track. Its long-term $28.8 billion five-year capital plan is expected to grow its rate base at a 7% compound annual growth rate through 2030.
Meanwhile, Fortis is continuing to advance major transmission, grid modernization, and energy infrastructure projects across North America, boosting its long-term growth outlook. With resilient operations, stable cash flow, and long-term infrastructure growth opportunities, it continues to stand out as one of the safest dividend stocks Canadian investors can own.
