4 Canadian Stocks That Keep Raising Their Dividends

These Canadian stocks are likely to deliver profitable growth and return more capital to shareholders through higher dividends.

| More on:
Key Points
  • These Canadian stocks continue to raise their dividends year after year, supported by resilient business models and sustainable payout ratios.
  • These dividend payers are backed by solid underlying businesses and have shown commitment to returning capital across economic cycles
  • These TSX stocks have the potential to increase their payouts over the years, helping investors grow their income.

While several TSX stocks pay reliable dividends, few keep raising their dividends year after year. For investors focused on building a reliable and growing income stream, these Canadian stocks can be attractive long-term holdings.

These dividend payers are backed by solid underlying businesses, maintain sustainable payout ratios, and have demonstrated a commitment to returning capital to shareholders across various economic environments. Looking ahead, these TSX stocks could raise their payouts over the years, helping investors grow their income over time.

With this backdrop, here are four Canadian stocks worth considering for their track record of steadily increasing dividends.

dividends grow over time

Source: Getty Images

Canadian dividend stock #1

Canadian Natural Resources (TSX: CNQ) is one of the best Canadian stocks that has consistently raised its dividend. Moreover, it is well-positioned to sustain its dividend-growth streak. The energy company has increased its dividend for 26 consecutive years, with the distributions compounding at roughly 20% annually over that period.

Canadian Natural Resources’ solid payouts are backed by its diversified portfolio of long-life, low-decline oil and natural gas assets. This asset base supports relatively predictable production while reducing the need for significant ongoing capital reinvestment. Further, its disciplined capital allocation, debt reduction, and focus on acquisitions position it well to generate substantial free cash flow across commodity cycles, providing a solid base for continued dividend growth.

Looking ahead, CNQ’s extensive proved reserves and large inventory of undeveloped assets provide a strong foundation for sustainable production and long-term cash flow growth. As these assets are developed and cash generation increases, the company can return more capital to shareholders through higher dividends and continued capital appreciation.

Canadian dividend stock #2

Fortis (TSX: FTS) is a no-brainer when it comes to dividend growth. Its regulated electricity and natural gas operations generate predictable cash flows, enabling the utility company to increase its distributions steadily. Fortis has raised its dividend for 52 consecutive years, reflecting both the resilience of its utility operations and management’s long-term focus on returning capital to investors.

The company also has a favourable outlook for continued dividend growth. Fortis plans to invest $28.8 billion under its five-year capital program, which should help expand its rate base and support future earnings growth. Management expects the company’s low-risk rate base to grow by approximately 7% per year through 2030, while targeting dividend increases of 4–6% annually over the same period.

Meanwhile, Fortis’s diversified portfolio of regulated utility businesses, investments in its existing operations, and other expansion initiatives provide a solid base for growth. At the same time, rising electricity demand could create additional growth opportunities, which would eventually support higher payouts.

Canadian dividend stock #3

Emera (TSX: EMA) is another reliable Canadian stock that has the potential to keep raising its dividends. Its regulated electric and natural gas utilities generate stable earnings and reliable cash flow, enabling it to pay and increase its dividend year after year. Emera has raised its distributions for close to two decades and expects annual dividend growth of 1% to 2% in the years ahead.

Emera’s rate base is expected to increase by 7% to 8% through 2030. This will help the company grow its EPS by 5% to 7% annually, driving higher payouts. Moreover, its investments in solar, energy storage, transmission, and grid modernization should help Emera benefit from rising energy demand while continuing to return capital to shareholders.

Canadian dividend stock #4

Canadian National Railway (TSX: CNR) is another compelling stock known for rewarding shareholders with consistent dividend hikes. As it transports essential goods, ranging from natural resources to consumer products, it benefits from steady demand. The transnational railway generates reliable cash flow, which supports its consistent dividend growth.

For instance, this rail shipping company has raised its dividend for three consecutive decades. That streak could continue, supported by solid freight volumes and steady demand across its extensive rail network. The company has also raised its 2026 guidance and expects adjusted EPS growth in the mid- to high-single-digit range.

Looking ahead, expansion initiatives, improved operational efficiency, and exposure to a diverse range of industries will drive CNR’s profitability and support long-term dividend growth.

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends Canadian National Railway, Canadian Natural Resources, Emera, and Fortis. The Motley Fool has a disclosure policy.

More on Dividend Stocks

dividend stocks are a good way to earn passive income
Dividend Stocks

This Dividend Stock Is One I’ll Never Sell — Here’s Why

Fortis (TSX:FTS) stock stands out as a dividend-paying, sleep-easy kind of name to buy and never sell.

Read more »

rising arrow with flames
Dividend Stocks

Income Investors: 3 Dividend Stocks That Keep Raising Their Payouts

These stocks have delivered annual dividend growth for decades.

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

The Market Won’t Wait for You to Feel Ready: Here’s Where I’d Put $1,000 Today

Put $1,000 to work now instead of waiting for perfect timing, using Nutrien as a starter stock you can add…

Read more »

Person holds banknotes of Canadian dollars
Dividend Stocks

4 Canadian Stocks I’d Load Into My TFSA Without Hesitation

These Canadian stocks offer reliable income and have the potential to deliver solid capital gains, making them to bets to…

Read more »

earn passive income by investing in dividend paying stocks
Dividend Stocks

The Dividend Stocks That Pay You While You Sleep

Are you looking for stocks that you can depend on for predictable passive income. These three dividend stocks are safe…

Read more »

coins jump into piggy bank
Dividend Stocks

This TSX Stock Yields More Than the Average Savings Account Today

Income-focused investors can start researching Enbridge stock on this dip for a potential buy for higher income for long-term capital.

Read more »

frustrated shopper at grocery store
Dividend Stocks

Inflation Eating Your Savings? This Stock Fights Back

For Canadians with a long-term investment horizon, Brookfield Infrastructure is a solid stock to potentially buy on dips and hold…

Read more »

Dividend Stocks

This 5% Dividend Stock Could Be the Ultimate Retirement Hack

This 5% dividend stock offers growing income backed by essential infrastructure assets, making it an intriguing option for retirement portfolios.

Read more »