Although the Canadian equity markets have staged a strong recovery from their April lows, with the benchmark S&P/TSX Composite Index gaining 14.8%, the outlook remains uncertain. Heightened geopolitical tensions, the potential for U.S. tariffs on Canadian goods, and persistent inflation could continue to fuel market volatility. Against this backdrop, investors should consider high-quality dividend stocks that can provide reliable income while adding stability to their portfolios.
With that in mind, let’s take a closer look at three quality dividend stocks worth considering right now.
Source: Getty Images
Fortis
Fortis (TSX:FTS) serves approximately 3.5 million customers across Canada, the United States, and the Caribbean, providing essential electricity and natural gas services. With a regulated asset base and most operations focused on low-risk transmission and distribution businesses, Fortis generates relatively stable earnings that are less sensitive to economic cycles, commodity price fluctuations, and broader market volatility. This resilient business model has enabled the company to increase its dividend for 52 consecutive years, while its shares currently offer a forward yield of 3.3%.
Looking ahead, Fortis is investing heavily to expand its asset base and capitalize on rising energy demand. The utility plans to invest $28.8 billion over the next five years, which could grow its rate base at an annualized rate of approximately 7% to $57.9 billion by the end of 2030. In addition to these investments, Fortis’s disciplined capital allocation, cost-reduction initiatives, and focus on innovation could further improve operational efficiency and profitability. Supported by these growth opportunities and its strong dividend track record, Fortis can maintain its dividend growth, thereby making it an ideal buy.
Enbridge
Another dividend stock that could offer resilient income across varying market conditions is Enbridge (TSX:ENB). The diversified energy infrastructure company operates more than 200 assets spanning midstream energy, natural gas utilities, and renewable energy. Approximately 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) comes from regulated assets and long-term take-or-pay contracts. In addition, inflation-linked mechanisms protect about 80% of its earnings from rising costs, supporting stable, predictable cash flows. This resilient business model has enabled Enbridge to maintain a long history of dividend payments and increase its dividend for 31 consecutive years. With a quarterly payout of $0.97 per share, its forward yield currently stands at 5.6%.
Looking ahead, rising oil and natural gas production across North America should continue to support demand for Enbridge’s extensive infrastructure. The company plans to capitalize on these favourable trends by pursuing roughly $50 billion in growth opportunities through annual investments of $10 billion–11 billion. These investments could help drive annual earnings and cash flow growth of approximately 5% through the end of the decade. Furthermore, management expects to return approximately $40 billion–45 billion to shareholders through 2030, reinforcing Enbridge’s position as an attractive dividend stock for long-term income investors.
Canadian Natural Resources
Canadian Natural Resources (TSX:CNQ) is another compelling dividend stock, having increased its dividend at a compound annual growth rate of more than 20% over the past 26 years. CNQ benefits from a large, long-life, low-decline reserve base that requires relatively modest sustaining capital, providing significant cash-flow visibility. Its low-cost operating structure, combined with disciplined capital allocation, has also helped reduce its breakeven costs, enabling CNQ to generate robust free cash flow across a broad range of commodity price environments. This financial resilience provides a strong foundation for continued dividend growth, while its forward yield currently stands at 3.7%
Looking ahead, elevated geopolitical tensions in the Middle East could keep oil prices supported in the near term, potentially benefiting CNQ’s cash flows and profitability. The company plans to invest approximately $6.9 billion this year to enhance its production capabilities and capitalize on its extensive resource base. More importantly, CNQ’s long-term growth outlook remains compelling, supported by approximately five billion barrels of oil equivalent in reserves and a proven reserve life of roughly 30 years. With low-cost operations, a substantial reserve base, disciplined capital allocation, and a strong dividend-growth record, CNQ appears well positioned to sustain and potentially grow its dividend over the long term, making it an attractive option for long-term investors.
