Canadians can choose from a broad selection of leading dividend-paying companies with a proven track record of generating reliable income. However, this article focuses on two Canadian companies that offer more than regular dividend payments. Their strong underlying businesses, manageable payout ratios, and ability to generate consistent cash flow are likely to support continued dividend increases over the next five years.
The payouts of these Canadian stocks have remained resilient through various economic cycles. Moreover, they have consistently increased their payouts.
Overall, these are the kind of stocks you can comfortably hold for the next five years.
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TC Energy stock
Among Canada’s reliable dividend stocks, TC Energy (TSX: TRP) looks like an interesting option for investors to hold comfortably over the next five years. The company transports and stores natural gas and also invests in power generation.
One key reason TC Energy is a reliable dividend grower is the stability of its underlying business. A large portion of its assets operates under regulated rates or long-term contracts, including take-or-pay agreements with financially sound customers. In fact, around 98% of its comparable EBITDA comes from regulated assets or these long-term arrangements. That gives the company a more predictable earnings stream and limits the impact of swings in commodity prices or weaker economic conditions.
Its dividend history is another reason why I’m positive about its payouts. TC Energy recently raised its quarterly dividend by 3.2% to $0.88 per share, marking its 26th straight year of annual dividend increases. Management expects dividends to grow by about 3% to 5% annually in the years ahead, enabling you to generate a growing income.
There are also reasons to be optimistic about the company’s growth and payouts. Growing natural gas demand and high asset utilization support its investment case.
TC Energy is focused on high-quality projects. Its $22 billion secured capital program through 2031 adds further visibility to future growth.
Overall, TC Energy’s dependable cash flow, growing gas demand, large investment pipeline, and visibility over future payouts make it a strong candidate for long-term dividend investors.
Brookfield Infrastructure Partners stock
Brookfield Infrastructure Partners (TSX: BIP.UN) could be a strong addition to an income-focused portfolio over the next five years. The company operates a broad range of essential infrastructure businesses, including utilities, transportation, midstream energy, and digital infrastructure. Many of these assets benefit from regulated pricing structures or long-term contracts, helping Brookfield generate relatively stable cash flows and support sustained growth in funds from operations (FFO) and distributions.
Brookfield Infrastructure has been growing its FFO at a solid double-digit rate over the past several years. Moreover, 85% of its earnings stem from regulated or contracted operations, providing visibility into future cash flows. This structure reduces sensitivity to economic downturns, creating a solid foundation for continued shareholder returns.
Brookfield has an impressive record of rewarding shareholders. It has increased its distribution for 17 straight years and maintains a payout ratio of 60% to 70%. This balance allows the company to return cash to investors while still retaining funds for future investments. Looking ahead, Brookfield Infrastructure expects annual distribution growth of 5% to 9%.
Growth opportunities further strengthen the investment case for Brookfield Infrastructure. Rising demand for AI-powered data centres, electricity, energy infrastructure, and transportation networks should create attractive expansion opportunities.
Overall, with stable cash flows, consistent distributions, and strong long-term growth drivers, Brookfield Infrastructure could deliver solid total returns in the next five years.
