A decline in the share price of a high-quality dividend stock can create an attractive opportunity for long-term investors. When a reliable dividend payer becomes cheaper, investors can lock in a higher yield while gaining exposure to future capital appreciation.
Notably, the broader TSX index continues to trade at elevated levels, making reasonably valued opportunities harder to find. However, some fundamentally strong TSX stocks with a consistent record of paying and growing dividends have pulled back, creating a buying opportunity.
With that in mind, here is a Canadian dividend stock that has fallen more than 13% from its 52-week high and is worth considering as a long-term buy-and-hold investment.
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A high-quality TSX dividend stock
Among the high-quality Canadian dividend payers and growers, TC Energy (TSX: TRP) looks compelling following the recent pullback. The energy infrastructure company operates primarily in natural gas transportation and storage, alongside power generation assets.
TC Energy’s long-life infrastructure is supported by regulated business models and long-term commercial agreements, including take-or-pay contracts with creditworthy counterparties. According to TC Energy, approximately 98% of its comparable earnings before interest, taxes, depreciation, and amortization is generated from rate-regulated assets or long-term take-or-pay arrangements. This provides a relatively stable earnings base through different economic and commodity-price environments and supports TC Energy’s ability to maintain and grow its dividend.
TC Energy’s dividend track record is impressive. It recently increased its quarterly dividend by 3.2% to $0.8775 per share, extending its record of annual dividend increases to 26 consecutive years.
Management currently expects dividend growth of approximately 3% to 5% annually, suggesting that investors can benefit from long-term dividend growth.
For income investors, TC Energy’s regulated and contracted cash flows, long dividend-growth record, and current yield above 4% make it an attractive investment.
TC Energy to keep growing its dividend
TC Energy appears well positioned to support continued dividend growth, led by its solid financial performance, a diversified asset base and the relatively low-risk nature of its operations. Strong results in the first half of 2026 highlight the resilience of its portfolio and provide a supportive foundation for future shareholder returns.
TC Energy’s outlook is also becoming more favorable as rising energy demand drives greater utilization across its network. Demand growth is emerging across several areas, including new natural gas-fired power generation, coal-to-gas conversions, and data centre development. These trends could create additional opportunities for the company to expand its infrastructure while generating incremental earnings and cash flow.
TC Energy is taking a selective approach to capital deployment, focusing on projects that can generate attractive returns while leveraging its existing asset footprint. During the past six months, the company sanctioned approximately $3 billion of new growth projects across its North American natural gas portfolio. Two of these projects will expand its presence in the U.S. natural gas market. At the same time, take-or-pay contractual arrangements provide greater visibility into future revenue and reduce exposure to commodity price fluctuations.
TC Energy’s $22 billion of secured capital program through 2031 provides a solid foundation for future growth in earnings and cash flow.
Overall, TC Energy’s highly regulated and contracted cash flow, rising natural gas demand, and a significant secured capital program provide a solid backdrop for consistent dividend growth.
The bottom line
Overall, TC Energy’s recent pullback offers a compelling entry point for long-term dividend investors. Its regulated and contracted cash flows, 26-year dividend-growth streak and $22 billion secured capital program provide a strong foundation for continued earnings and dividend growth.
