These 3 Dividend Stocks Could Help You Sleep Better at Night

These three Canadian dividend stocks aim to help investors sleep better by focusing on essentials: power, groceries, and trusted retail brands.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 24, 10:30 am EDT

| More on: CTC.AEMP.AFTS

Key Points

Fortis offers regulated utility cash flow and a 52-year dividend-growth streak, with 4% to 6% growth targeted through 2030.
Empire is a steady grocery operator with resilient sales, even though its yield is modest and e-commerce charges added noise.
Canadian Tire pays a strong dividend and owns iconic banners, but results can swing with consumer spending.

10 stocks we like better than Canadian Tire

The market can keep you up at night. One week, inflation looks better. The next, rates become the worry again. Then a tariff headline, jobs report, oil swing, or consumer slowdown knocks confidence around. For dividend investors, the answer doesn’t need to involve chasing every hot trade. Sometimes, the better move is owning companies that sell things people keep using anyway.

That’s why Fortis (TSX:FTS), Empire (TSX:EMP.A), and Canadian Tire (TSX:CTC.A) look like three dividend stocks that could help investors sleep better at night.

a woman sleeps with her eyes covered with a mask — Source: Getty Images

FTS

Fortis stock owns regulated electric and gas utilities across Canada, the United States, and the Caribbean. People don’t stop using power because the economy slows, giving Fortis the kind of steady demand dividend investors love.

The dividend record says a lot. Fortis stock has increased its common share dividend for 52 straight years. In the first quarter of 2026, it paid $0.64 per share, up from $0.615 a year earlier, coming to an annual dividend of $2.54, yielding 3.2% at writing. Management also targets 4% to 6% annual dividend growth through 2030.

The company also has a large capital program, focused on upgrading and expanding regulated utility assets. That spending can support future rate-based growth, which helps earnings and dividends over time. The risk comes from higher interest rates, regulatory decisions, and project costs. Utilities use debt, so borrowing costs can hurt. Regulators can also limit returns. Still, Fortis stock has the track record, scale, and conservative profile to remain a core defensive holding.

EMP

Empire offers a different kind of comfort. It owns Sobeys, Safeway, FreshCo, Farm Boy, Foodland, and other grocery banners. When households feel squeezed, they may delay a renovation or skip a big-ticket purchase. But groceries remain part of every week. That makes Empire a useful stock for investors who want exposure to everyday spending.

Empire took a large impairment charge tied to its e-commerce update. But the underlying food business still showed resilience. Fiscal third-quarter sales rose 2.1% to $7.89 billion, while food same-store sales climbed 2%. Adjusted earnings per share (EPS) came in at $0.72, ahead of the prior year.

Empire’s dividend yield sits lower than that of many income stocks at 1.8%, but investors shouldn’t dismiss it. A lower yield can still work when the business remains steady and management keeps raising the payout over time. Empire’s strength comes from its store network, private-label products, and ability to serve shoppers across discount, conventional, and specialty formats.

CTC

Canadian Tire rounds out the group with a more cyclical but still familiar name. It owns Canadian Tire, Mark’s, SportChek, PartSource, Pro Hockey Life, and a major financial services arm.

Canadian Tire declared a quarterly dividend of $1.80 per share in May 2026, coming to $7.20 annually and yielding 3.83% at writing, keeping its payout at a high level for income investors. The company has spent the last few years working through a tougher consumer backdrop, but its brand power remains hard to ignore. Few retailers have the same mix of loyalty, credit-card reach, real estate, and national presence.

The risk here is more obvious. Canadian Tire depends on consumer spending, and big-ticket categories can slow when households feel pinched. Retailers also face inventory, margin, and execution pressure. But Canadian Tire isn’t a fad retailer. It owns one of the most recognized brands in the country, and that gives patient investors something solid to lean on.

Bottom line

Together, these three stocks cover needs Canadians understand well: power, food, and household essentials. Fortis stock brings utility stability. Empire brings grocery resilience. Canadian Tire brings a trusted retail brand with a strong dividend. And together, these dividend stocks bring in stable income even with $7,000 invested.