3 Canadian Dividend Giants I’d Buy With Rates on Hold

Focusing on dividend giants while interest rates are on hold is a prudent strategy for income investors.

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Key Points
  • The Bank of Canada paused at a 2.25% policy rate on Sept 2, 2026, making dividend‑paying blue chips an attractive defensive play amid TSX volatility.
  • Anchor with Royal Bank (TSX:RY) — Canada’s largest bank, Q3 revenue/net income +9.1%/+11.3%, 156‑year dividend track record, ~2.47% yield.
  • Complement RY with Enbridge (TSX:ENB) for yield (~5.8%) from long‑term energy contracts and Fortis (TSX:FTS) for stability (~3.4% yield, 52 years of increases and 4–6% dividend growth guidance).

Market analysts called it right following the Bank of Canada’s decision on September 2, 2026, to hold its policy rate steady at 2.25%. The pause could be indefinite as policymakers guard against inflation while assessing the impact of ongoing trade tensions with the United States.

Meanwhile, the TSX continues to experience spikes and dips this month, although the benchmark index has maintained positive returns for most of the year. Given this backdrop, I’d focus on three Canadian dividend giants while rates are on hold. For income investors, these blue-chip stocks offer attractive yields and predictable dividend income.

A close up color image of a small green plant sprouting out of a pile of Canadian dollar coins "loonies."

Source: Getty Images

Quality anchor

Royal Bank of Canada (TSX: RY) deserves a permanent spot in any investment portfolio. This $394.8 billion bank is Canada’s largest bank and the TSX’s largest company by market cap. The financial services sector, where it belongs, is the second-best-performing sector so far in 2026.  

In its most recent quarterly report (three months ending July 31, 2026), total revenue and net income increased 9.1% and 11.3% to $18.5 billion and $6 billion, respectively, compared to Q3 fiscal 2025. According to President and CEO Dave McKay, the earnings results showcase the strength of RBC’s diversified business and healthy balance sheet. He adds that the 13.5% CET1 ratio supports solid volume growth.

RBC also wins out in dividend longevity. The dividend track record stands at 156 years and counting. At $285.20 per share, RY outpaces the broader market with a 24.3% year-to-date gain versus the TSX’s plus-12.8% return. If you invest today, the dividend yield is 2.5%.

Energy industry titan

Enbridge (TSX: ENB) is the logical choice for yield chasers. The $144.7 billion energy infrastructure company boasts an impressive 31-year dividend growth streak despite the inherently volatile energy sector. At $66.23 per share, ENB pays a hefty 5.8% dividend.

Much of its earnings come from long-term contracts or cost-of-service regulation. ENB’s energy infrastructure assets include an 18,085-mile-long liquids pipeline network that transports 30% of North America’s crude oil. The company sees $50 billion worth of opportunities through 2030, with $26 billion in the near term.

Its President and CEO, Greg Ebel, said, “Enbridge’s strategic assets will help strengthen North America’s energy future. If you purchase 209 ENB shares today, expect your $13,842 investment to generate $200.71 every quarter.

Safety net

Fortis (TSX: FTS) is a no-brainer buy for risk-averse, defensive investors. This elite utility stock is one of only two Canadian dividend kings.  FTS has increased dividends for 52 consecutive years. At $75.36 per share (+8.3% year-to-date), you can partake in the 3.4% dividend.  

The $38.5 billion electric and gas utility company operates a diversified portfolio of regulated utilities (100%) and serves end-users in Canada, the U.S., and the Caribbean. An added incentive to invest is the annual dividend growth guidance of 4% to 6% through 2030. This guidance indicates the company’s long-term economic viability, which doesn’t need an explanation.

Prudent strategy

With the central bank holding rates steady amid ongoing uncertainty, prioritizing quality cash flow is the most prudent strategy for income investors. With Royal Bank of Canada as the anchor, Enbridge acting as an income driver, and Fortis providing stability, you gain the confidence to navigate today’s market volatility.

Fool contributor Christopher Liew 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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