While Rates Sit Still, These 2 Dividend Giants Look Good

Whether you’re a beginner or a seasoned investor, these two high-quality TSX dividend stocks can be excellent holdings for your self-directed investment portfolio.

Key Points
  • Start by focusing on high‑quality dividend‑growth stocks—companies with reliable payout histories, strong fundamentals, and resilient business models that can withstand macro shocks.
  • Enbridge (TSX:ENB) is a flagship pick with ~70 years of quarterly dividends and 31 years of increases, trading near C$71.74 with a ~5.41% yield and exposure to pipelines, utilities, and renewables.
  • Fortis (TSX:FTS) offers regulated utility stability with 50+ years of dividend growth, trading near C$78.27 with a ~3.27% yield—both names are defensive choices to help protect and grow a portfolio through inflationary or down‑market periods.

If you are starting to invest in the stock market, my advice would be to first think of high-quality dividend stocks. I don’t mean just any high-yielding dividend stocks. The real key is to find stocks with a reliable history of paying and growing payouts for years. These stocks are typically backed by large underlying businesses, solid fundamentals, and an earnings base that makes the business model resilient against transient macroeconomic problems.

Keeping that in mind, here are two TSX dividend stocks that are a staple in many investment portfolios and should be in yours as well.

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Source: Getty Images

Enbridge

Enbridge Inc. (TSX: ENB) is one of the best Canadian dividend stocks to consider, especially as a beginner. The stock has an impeccable track record of seven decades of dividend payments each quarter. For the last 31 years, Enbridge has also increased its payouts each year to deliver dividends that can outpace inflation.

Enbridge is a $156.7 billion market cap giant in the Canadian energy infrastructure, utilities, and oil and gas industries. The company boasts a network of pipelines responsible for transporting a lot of the crude produced and consumed in North America. It has one of the largest natural gas utility businesses under its belt, and it has a growing presence in the renewable energy space.

Combined, all these factors make Enbridge stock a compelling investment. As of this writing, it trades for $71.74 per share and boasts a 5.4% dividend yield that you can lock into your portfolio today.

Fortis

Fortis Inc. (TSX: FTS) is one of the rarest Canadian dividend stocks boasting a dividend-growth streak spanning more than half a century. The $40 billion market-cap utility holdings company owns and operates several natural gas and electric utility businesses across Canada, the US, and the Caribbean. All these are rate-regulated markets, and most of the company’s revenue comes from long-term contracted assets. It means predictable revenue and clear visibility for its cash flows in an otherwise uncertain market.

Backed by a resilient business model, Fortis stock has been paying its investors for decades and has increased payouts without fail for more than 50 years. With demand for the essential services it provides only set to increase, it looks well-positioned to continue paying distributions that beat inflation. As of this writing, it trades for $78.27 per share and boasts a 3.3% dividend yield that you can lock into your portfolio.

Foolish takeaway

As the Bank of Canada (BoC) continues to leave interest rates as they are, it is clear that the central bank is being cautious in this uncertain economic environment. Inflationary pressure continues to plague the economy, and it is a matter of time till the next downturn comes around. It might be a good idea to prepare a portfolio that can continue generating returns in a bear market. To this end, high-quality dividend stocks like Enbridge and Fortis can be excellent picks to consider.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and Fortis. The Motley Fool has a disclosure policy.

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