One Canadian Dividend Stock Built to Hold in Any Market Condition

A dependable utility business and 3.9% yield make this Canadian dividend stock worth owning for the long term.

Key Points
  • Emera (TSX:EMA) gives investors exposure to essential utility services and steady cash flow.
  • The company is targeting 5% to 7% average adjusted EPS growth through 2030.
  • Its 3.9% dividend yield and regulated assets make it appealing for long-term income investors.

Unexpected market volatility could make even patient Foolish investors second-guess their plans. But fortunately, the best dividend stocks rarely get shaky due to short-term market noise or temporary economic fluctuations. Instead, they are usually tied to essential services, steady cash flow, and long investment runways that could help the business navigate through higher interest rates, weaker sentiment, or slower growth.

That is why utility stocks could be among the best investments to own through a noisy market. Their growth may not be explosive, but dependable demand for their products and services could make their dividends easier to trust. One such Canadian dividend stock I find especially attractive is a utility that combines dependable income with long-term growth potential. Let me explain why this dividend player stands out for long-term investors.

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A utility stock built for uneven markets

That stock is Emera (TSX: EMA), the Halifax-based energy and services firm with regulated electric and gas assets in Canada, the United States, and the Caribbean. Emera invests in electricity generation, transmission, and distribution, as well as gas infrastructure, while gradually shifting its business from higher-carbon operations toward lower-carbon energy sources.

At the time of writing, Emera stock was hovering around $75 per share, giving the company a market cap of about $23 billion. The stock has jumped 21% over the last year and currently sits only about 1.6% below its 52-week high.

This reliable stock also rewards investors with attractive quarterly dividends, with the current yield near 3.9%. That combination matters because you don’t need to sacrifice income for stability. You are getting a business tied to essential services, a share price that has already shown momentum, and a dividend that still looks trustworthy for a long-term income plan.

Recent results show steady execution

Even as geopolitical tensions keep the market shaky, Emera has started 2026 on a strong note. In the first quarter, the company’s adjusted earnings per share (EPS) rose 7% year-over-year (YoY) to $1.37. That growth was mainly backed by stronger contributions from Emera Energy Services, Peoples Gas Systems, and Tampa Electric.

During the quarter, the company also deployed more than $870 million of its $4 billion capital plan for 2026, with spending focused on reliability and managing customer cost pressures. Adding to the optimism, its operating cash flow rose 6% YoY, giving it more flexibility to keep funding its long-term utility investments.

What could support long-term growth?

What makes Emera even more attractive for the long term is its target to deliver average adjusted EPS growth of 5% to 7% through 2030. That goal seems quite achievable due to its diversified portfolio.

Although some pressure remains, including lower earnings from Nova Scotia Power and the effect of a stronger Canadian dollar, its overall direction still looks constructive.

Meanwhile, Emera is also selling its full interest in Grand Bahama Power Company, a move that should sharpen its focus on core regulated businesses.

Given all these positive factors, this Canadian dividend stock clearly looks like a dependable long-term option, especially for those building a durable income portfolio.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Emera. The Motley Fool has a disclosure policy.

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