Market uncertainty and the artificial intelligence (AI) revolution taught us that some legacy dividend stocks can also pause dividend growth. The only constant is change, and adapting to this change can revive growth. In the last two years, several renewable energy stocks and two telecom giants slashed dividends, while oil and gas stocks saw a dividend recovery.
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Three Canadian stocks that keep raising dividends
In each of these scenarios, some Canadian stocks kept raising their dividends without stressing their cash flows. Do they still have the potential to grow dividends in the future? Let’s see.
Canadian Natural Resources
Canada is an energy export economy. Thus, it comes as no surprise that Canadian Natural Resources (TSX:CNQ), which owns the country’s largest private oil sands reserves, is among the dividend knights. It is among the biggest beneficiaries of rising global energy prices.
The company reported record quarterly production output and revenue in the second quarter of 2026. It used $6.9 billion in funds from operations to reduce debt by $1.6 billion, $2.4 billion on capital expenditure, and another $2.4 billion on dividends and share buybacks.
Canadian Natural Resources uses technology upgrades and economies of scale to reduce production costs. During the energy upcycle, it acquired several reserves and used revenue from increased output to accelerate debt repayment from $15.9 billion in December 2025 to $14.5 billion in June 2026. It aims to reduce it to the targeted $13 billion. Once it achieves this target, the company will use 100% of free cash flow on direct shareholder returns.
Canadian Natural Resources calculates free cash flow after deducting dividends and capex, which means the entire FCF is used for share buybacks. By incorporating dividends into the breakeven price, Canadian Natural Resources protects dividends from oil price fluctuations. Moreover, it has a higher mix of high-margin products, Synthetic Crude and Natural Gas Liquids, which helps it stay profitable even in a cyclical downturn. This business model has helped it grow dividends for 26 consecutive years, even during a supply glut.
Enbridge
Enbridge (TSX:ENB) is another stock that has been raising its dividends for 31 years in a row. However, its dividend growth rate has slowed from 10% to 3% since the pandemic. Behind this slow growth is a change in Enbridge’s strategy from expanding oil pipelines to natural gas pipelines. Enbridge’s pipelines are a lifeline of Canadian oil exports. Now that the North American liquefied natural gas (LNG) export opportunity has arisen, Enbridge is pursuing that opportunity. This has shifted cash flow towards capital expenditure and acquisitions.
The next two years are crucial for the company as a significant number of LNG projects under development are scheduled to come online by 2028. A project under development means more working capital and higher debt levels. Once these projects start earning cash flow, working capital and debt reduce, leaving more cash for dividends.
Enbridge expects to grow its dividends by 5% from 2027 onwards. This growth rate could increase in the long term as debt recedes. Its projects have a long lifecycle, which means once these projects are fully paid off, project cash flow only has to cover maintenance, dividends, and future capital projects.
Manulife Financial stock
Manulife Financial (TSX:MFC) is a stock to own for the 10% average annual dividend growth rate it has maintained for the last 13 years. It doesn’t have a strong history like the above energy stocks because Manulife, like all financial companies, suffered a blow from the 2008 Global Financial Crisis. However, it kept the annual dividend unchanged from 2010 to 2013 before growing it in 2014.
Manulife is funding its dividend growth from increasing core earnings. It is expanding its operations in Asia, growing new business organically and through acquisitions. Some of the new business premiums will trickle down to core earnings if the risk term passes without claim incidents. Even from this core earnings, Manulife maintains a payout ratio of 35–45%, giving it ample flexibility to sustain current dividends and grow them if core earnings grow.
However, Manulife’s dividend growth rate could slow or even pause if the new business growth stagnates. It can grow dividends until then.
