Are These Still the Best Dividend Stocks in Canada?

Income investors know that there’s more to picking the best dividend stocks than just chasing the highest yield. Many of these offer strong earnings, sustainable payouts and a path to continued growth.

Here’s a look at a trio of options that are perceived by many as some of the best dividend stocks in Canada. Each of these offers a long dividend history, sizable defensive moat, and an essential role in the Canadian economy.

The dependable dividend-growth option

Utility stocks are known as some of the most defensive picks on the market. Part of that comes down to the stability of their business models.

That’s why Fortis (TSX:FTS) makes the list as one of the best dividend stocks for Canadians to own right now.

The company has multiple operating regions across Canada, the U.S., and the Caribbean. Fortis provides essential electric and natural gas service across those markets.

That gives Fortis two big advantages: size and necessity.

That necessity makes Fortis one of the most defensive picks on the market. People cannot go without or cut back on electricity and gas service the same way that they would cut a cell phone bill or stop eating at restaurants.

As a result, Fortis generates a reliable and recurring revenue stream that’s backed by regulated rates. This lets the company predictably invest in growth initiatives and pay a quarterly dividend.

As of the time of writing, Fortis offers a yield of 3.2%.

Fortis has provided investors with annual upticks to that dividend for over 50 consecutive years. That’s the second-longest dividend streak in Canada.

Fortis also expects to continue that tradition and is targeting 4% to 6% annual increases through 2030.

For investors looking for the best dividend stocks in Canada, Fortis is an option that’s hard to ignore.

Generate a growing income stream

Enbridge (TSX:ENB) is another option for investors looking to own the best dividend stocks.

The company operates a massive network of oil and natural gas pipelines, as well as a growing renewable energy business and natural gas utility.

The bulk of Enbridge’s revenue comes from that pipeline business, which hauls nearly 30% of all North American-produced crude and one-fifth the natural gas needs of the U.S. market. That cash flow is supported by long-term contracts or regulated rates that shield Enbridge from the volatile price of the commodity being transported.

As a result, Enbridge can invest in growth projects from its multi-billion-dollar backlog and pay out a quarterly dividend.

As of the time of writing, Enbridge offers a yield of 5.3%, making it one of the better-paying options on the market.

And like Fortis, Enbridge has an established practice of providing annual increases to that dividend. Enbridge has provided annual increases to its dividend for 31 consecutive years, including a 3% bump for 2026.

Scotiabank offers income with more recovery potential

Completing the trio of best dividend stocks from Canada is Bank of Nova Scotia (TSX:BNS). It would be hard to compile a list of income producers and not mention at least one of the big bank stocks.

Scotiabank isn’t the largest of the big banks, but it is known as Canada’s most international bank. The big banks have turned their attention to international markets in recent years to fund growth.

Scotiabank has been shifting its growth strategy toward North America, directing most of its capital toward Canada, the U.S. and Mexico. That gives the bank a more focused approach to growth while maintaining a strategic presence across Latin America.

In terms of income, Scotiabank offers a quarterly dividend that carries a yield of 3.7% as of the time of writing. And like the other investments mentioned above, Scotiabank has also increased that payout over time and has been paying dividends continuously since 1833.

Are these still the best dividend stocks?

Fortis, Enbridge, and Scotiabank can still be considered among the best dividend stocks in Canada. However, investors should note that they serve different purposes.

Fortis provides defensive appeal and steady dividend growth. Enbridge offers dependable cash flow and higher income. Finally, Scotiabank provides steady income and long-term growth potential.

In my opinion, one or all of the above should be core holdings in any well-diversified portfolio.

Buy them, hold them, and watch your portfolio grow.