With equity markets near record highs and elevated oil prices threatening to drive inflationary pressures through the broader economy, we could see some turbulence in the coming months.
In this environment, it makes sense for Tax-Free Savings Account (TFSA) and Registered Retirement Savings Plan (RRSP) investors to consider owning stocks that have good track records of delivering steady dividend growth through the full economic cycle.
Group of friends laughing on a roller coaster ride at the amusement park during sunny day.
Emera
Emera (TSX:EMA) trades near $71.50 per share at the time of writing compared to the 12-month high around $78. The dip gives investors a chance to buy the stock at a discount and pick up a solid 4.1% dividend yield.
Emera owns electric and natural gas distribution utilities in Canada, the United States, and the Caribbean. These businesses provide essential services that households and companies need regardless of the state of the economy. Revenue primarily comes from rate-regulated assets, which means cash flow tends to be predictable.
Emera delivered adjusted net income of $627 million in the first half of 2026, up from $615 million in the same timeframe last year. Management said the company is on track to complete $4 billion in capital projects in 2026.
Adjusted earnings per share growth (EPS) will likely be above 7% in 2026 and is targeted to be 5% to 7% per year through 2030. This should support ongoing dividend increases.
TC Energy
TC Energy (TSX:TRP) trades near $88 at the time of writing. The stock was as high as $99 in recent weeks and is still up 25% in the past year.
TC Energy rebounded strongly in the past two years after taking a hit in 2022 and 2023 when the Bank of Canada and the U.S. Federal Reserve aggressively raised interest rates to get inflation under control. The resulting jump in borrowings costs hit TC Energy at a time when it needed to raise additional funds to get its Coastal GasLink pipeline project completed due to cost increases.
Since then, management has done a good job of monetizing non-core assets to pay down enough debt to enable the business to continue making progress on the capital program. Coastal GasLink, along with a large natural gas pipeline in Mexico, is now finished.
The surge in domestic and global demand for natural gas should bode well for TC Energy in the next few years. Gas-fired power production facilities are being built to supply electricity to AI data centres. At the same time, global buyers want to secure reliable supplies of liquified natural gas (LNG) from Canada and the United States. TC Energy is considering a second phase for the Coastal GasLink pipeline that carries natural gas to the new LNG Canada export facility on the coast of British Columbia.
TC Energy intends to invest about $6 billion per year on growth projects over the medium term. As new assets are completed and go into service the boost to cash flow should enable dividend increases. TC Energy raised the dividend in each of the past 26 years. Investors who buy TRP stock at the current price can get a dividend yield of 4%.
The bottom line
Emera and TC Energy pay good dividends that should continue to grow. If you have some cash to put to work in a dividend portfolio, these stocks deserve to be on your radar.
