Although the S&P/TSX Composite Index has gained more than 14% this year, persistent inflation, slowing global economic growth, and lingering geopolitical tensions continue to cloud the outlook. In this uncertain environment, investors seeking stability and attractive returns should consider these two stocks. Backed by resilient business models, reliable dividend payouts, and solid growth prospects, both companies are well positioned to deliver consistent income and long-term shareholder returns. Let’s take a closer look at these two investment opportunities.
Source: Getty Images
Enbridge
Enbridge (TSX:ENB) is a diversified energy infrastructure company with more than 200 revenue-generating assets spanning midstream, natural gas utilities, and renewable energy. Approximately 98% of its cash flows are generated from regulated assets and long-term take-or-pay contracts, while a significant portion of its earnings is indexed to inflation. This resilient business model helps shield Enbridge’s financial performance from economic volatility and commodity price fluctuations. As a result, the company has delivered a total shareholder return of approximately 900% over the past 20 years, representing an annualized return of 12.2%.
Enbridge has also rewarded shareholders with uninterrupted dividend payments for more than seven decades and 31 consecutive years of dividend growth. The stock currently offers an attractive forward dividend yield of 5.42%.
Looking ahead, rising oil and natural gas production in North America should support demand for Enbridge’s midstream infrastructure. Furthermore, oil and natural gas could remain significant parts of the global energy mix, providing a favourable long-term backdrop for the company. Enbridge has identified approximately $50 billion in growth opportunities and plans to invest $10 billion to $11 billion annually to fund these projects. It also expects to sanction approximately $20 billion in projects through 2027. These investments could support around 5% annual growth in earnings and cash flow through 2030, helping the company return $40 billion to $45 billion to shareholders. Given its resilient business model, reliable dividend, and strong growth pipeline, Enbridge remains an attractive choice for income-focused investors seeking stable long-term returns.
Fortis
Another dividend stock that offers an attractive combination of stability and growth is Fortis (TSX:FTS), which operates nine regulated electricity and natural gas utilities serving approximately 3.5 million customers. Its regulated asset base and focus on low-risk transmission and distribution operations enable the company to generate stable, predictable financial results regardless of broader economic conditions. This resilient business model has helped Fortis deliver a total shareholder return of approximately 600% over the past 20 years, representing an annualized return of 10.2%. The utility has also increased its dividend for 52 consecutive years and currently offers an attractive dividend yield of 3.27%.
Looking ahead, economic growth, transportation electrification, and the rapid expansion of AI-ready data centres could drive demand for electricity and natural gas. To capitalize on these trends, Fortis is executing a five-year, $28.8 billion capital investment plan through 2030, which could expand its rate base to $57.9 billion. The company is also pursuing preventive maintenance, innovative technologies, and efficiency initiatives to reduce costs and improve profitability. These investments should support earnings and cash flow growth while strengthening dividend sustainability. Management expects to increase its dividend by 4% to 6% annually through 2030, making Fortis an attractive choice for investors seeking stability and consistent long-term growth.
