Consistently increasing dividends is one of the strongest indicators of a high-quality business. Companies that can reward shareholders with higher payments year after year typically generate reliable cash flows, maintain healthy balance sheets, and possess durable competitive advantages.
The TSX has several high-quality dividend stocks with long track records of raising their payouts through changing market conditions. These businesses have continued to grow earnings, generate strong free cash flow, and return more capital to shareholders, making them attractive long-term investments for building passive income.
Against this background, here are the top-tier Canadian stocks that just bumped up dividends again and are well-positioned to maintain this streak.
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Top dividend stock #1: Bank of Montreal
Bank of Montreal (TSX:BMO) is one of the top income stocks that has just bumped up dividends again. The Canadian banking giant has a remarkable 197-year record of uninterrupted dividend payments, the longest of any Canadian company. It recently raised its quarterly dividend by 5% to $1.71 per share. Moreover, in the 15 years, its dividend has grown at a 5.7% compound annual growth rate (CAGR).
Bank of Montreal’s diversified revenue base, operating efficiency, and a solid balance sheet support its dividend payments and growth. Its recent second-quarter results were solid. BMO’s earnings remained solid, led by strong fee income. At the same time, commercial loan growth in both Canada and the U.S. reflected improving business activity. These gains indicate that BMO’s diversified business model continues to generate resilient earnings across market cycles.
Looking ahead, the bank appears well-positioned for sustainable growth. A broad revenue mix, expanding loan and deposit base, rising fee-based income, disciplined cost management, and a strong balance sheet provide a solid earnings foundation. Meanwhile, continued investment in technology and AI will drive operational efficiency, supporting future dividend growth.
Top dividend stock #2: Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is another top TSX stock that has recently bumped up dividends. The oil and gas company recently raised its quarterly dividend by 6.4%, increasing its annualized payout to $2.50 per share and extending its dividend-growth streak to 26 consecutive years. Over that period, dividends have grown at an average annual rate of nearly 20%.
CNQ’s distributions are supported by its portfolio of long-life, low-decline assets, which deliver stable production while limiting the capital required to sustain output. This drives cash flow across commodity price cycles.
Supporting its payouts is the company’s diversified portfolio of long-life, low-decline assets. These assets provide reliable production levels while reducing the need for significant reinvestment simply to maintain output. In addition, much of Canadian Natural’s proved reserves are long-life, low-decline assets, giving the company stronger production visibility and operational flexibility over the long term.
The company’s extensive undeveloped land holdings also support future expansion opportunities, positioning it well for continued production growth and additional dividend increases in the years ahead.
Thanks to its growing cash flow, Canadian Natural is deleveraging its balance sheet. It has reduced net debt to below $16 billion, enhancing financial flexibility. Its solid balance sheet will enable the company to enhance shareholder value and pursue growth opportunities. With substantial undeveloped land supporting future production growth, proved reserves of long-life, low-decline assets, and a focus on strategic acquisitions, Canadian Natural appears well-positioned to sustain dividend increases over the long term.
Top dividend stock #3: Canadian National Railway
Canadian National Railway (TSX:CNR) is another reliable dividend payer. It increased its quarterly dividend by 3%, marking 30 straight years of dividend growth. Its solid payout history highlights the strength of its business and ability to deliver steady earnings.
With one of North America’s largest rail networks, Canadian National transports essential goods, including natural resources and consumer products, making it a vital part of the continent’s supply chain. Its broad network provides a competitive advantage and helps stabilize revenue amid changing economic conditions.
The company also benefits from serving a wide range of industries. This diversification supports consistent cash flow.
Looking ahead, Canadian National’s focus on improving efficiency, controlling costs, and growing profitably should support future dividend increases.
