When growth falls out of favour, investors should look for stocks offering stability and reliable income. Canadian dividend stocks are a top investment during such periods, as they offer steady cash flow through regular dividend payments, even amid market uncertainty.
However, as dividends are never guaranteed, look for companies with strong fundamentals, healthy balance sheets, the ability to deliver profitable growth, and a focus on enhancing shareholder value. These Canadian stocks are most likely to maintain and grow their dividend over time, creating a reliable stream of passive income while reducing overall portfolio risk.
With this background, here are three Canadian dividend stocks yielding up to 6.3% and worth owning when growth falls out of favour.
Source: Getty Images
Top dividend stock #1: Canadian Utilities
Canadian Utilities (TSX:CU) offers stability and solid income, making it a compelling investment when growth falls out of favour. The utility company’s defensive, regulated business generates predictable cash flows, supporting higher dividend distributions year after year.
Canadian Utilities has raised its dividend for 54 consecutive years, which is the longest streak among publicly traded Canadian companies. Moreover, it is well-positioned to continue growing its dividend in the years ahead.
The utility giant’s planned $12 billion investment in regulated utility assets between 2026 and 2030 should steadily expand its rate base and support consistent earnings growth. At the same time, Canadian Utilities is focused on securing new long-term contracts to improve cash flow visibility and add stability to its earnings. Together, these factors strengthen Canadian Utilities’s ability to sustain reliable dividend growth over the long term.
Top dividend stock #2: Enbridge
Enbridge (TSX:ENB) is a top dividend stock to own even if growth falls out of favour. Its diversified assets, including oil and natural gas pipelines, utilities, and renewable energy assets, generate stable distributable cash flow (DCF), supporting its payouts. Moreover, its regulated operations and long-term take-or-pay contracts reduce exposure to commodity price swings.
Enbridge has paid dividends for more than 70 years and increased them annually since 1995. Moreover, it yields about 5%.
The energy infrastructure company targets a payout ratio of 60%-70% of DCF, which is sustainable. Moreover, management expects mid-single-digit earnings and DCF growth, supported by a $39 billion secured project backlog. Structural demand drivers, including AI-led electricity consumption, rising natural gas demand, and energy transition investments, further strengthen Enbridge’s long-term earnings outlook, making it a must-own dividend stock.
Top dividend stock #3: Gibson Energy
Gibson Energy (TSX:GEI) is an attractive high-yield dividend stock to buy and hold when growth falls out of favour. Most of Gibson Energy’s earnings come from its extensive liquids infrastructure network, which operates under long-term, take-or-pay contracts with investment-grade customers. This business model minimizes exposure to commodity price swings, generates predictable cash flow, and provides a solid foundation for consistent shareholder returns.
Thanks to its resilient business model and growing cash flow, Gibson has raised its dividend for seven consecutive years. It currently offers a compelling yield of 6.3%.
Looking ahead, the ongoing strength in its Infrastructure platform, Chauvin acquisition, and the completion of the Wink-to-Gateway Integration project are expected to strengthen Gibson’s network, improve operating efficiencies, and support earnings growth in the years ahead.
Overall, its steady dividend growth, infrastructure-backed cash flows, and high yield make Gibson Energy a top long-term buy-and-hold stock.
