The Companies Quietly Rewarding Canadian Shareholders While No One’s Watching

Some of Canada’s steadiest dividend growers never make the headlines. Here are two TSX stocks quietly putting more cash in shareholders’ pockets.

Key Points
  • AltaGas and MTY are under-the-radar dividend growers that quietly raise payouts year after year.
  • AltaGas combines utility‑like regulated cash flow with midstream upside — it raised its 2026 dividend 6% to $1.34, yields ~2.5%, reported record Q2 EBITDA and lifted full‑year guidance while improving leverage.
  • MTY’s asset‑light franchise model supports a higher ~4.1% yield and a very low 20% payout ratio (quarterly dividend up 12% to $0.37), keeping the dividend secure despite recent revenue and profit headwinds.

Some of the best dividend stock stories on the TSX never make headlines. They are not as flashy or as alluring as to generate breathless coverage on business channels. Yet, they simply keep raising their payouts, year after year, while most investors look right past them.

AltaGas (TSX: ALA) and MTY Food Group (TSX: MTY) are two such examples, both having built multi-year streaks of slight but noticeable dividend increases, all while staying under the radar, unlike names like Fortis or Enbridge. For income investors who are willing to look a little deeper, this quiet consistency is worth understanding.

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Source: Getty Images

AltaGas

AltaGas (TSX: ALA) is a North American energy infrastructure company. It serves about 1.6 million utility customers across the mid-Atlantic and midwestern United States through regulated natural gas distribution networks. Those operations generate predictable, rate-regulated cash flow. The company also operates a midstream segment that gathers, processes, and exports natural gas liquids from Western Canada to premium Asian markets.

This balance that it maintains constantly between stability and growth matters. The utility side provides the foundation while the midstream side provides the upside. As a result, AltaGas raised its annual dividend by 6% for 2026, bringing it to $1.34 per share.

That increase marks the sixth consecutive annual increase, and management has extended its guidance for 5% to 7% annual dividend growth through 2030. The stock yields roughly 2.5% at current levels.

The latest quarter strengthened that trajectory further. AltaGas reported record second-quarter 2026 results, with normalized EBITDA of $391 million compared to $342 million a year earlier. The company also raised its full-year guidance, lifting normalized EBITDA expectations to a range of $2 billion to $2.1 billion. Adjusted net debt-to-normalized EBITDA also sat at 4.4 times, well below the low end of AltaGas’ target leverage range.

MTY Food Group

MTY Food Group is a Montreal-based company that franchises and operates more than 80 different restaurant brands across over 7,000 locations worldwide, including Thai Express, Sushi Shop, Mucho Burrito, and Taco Time. Its asset-light, franchise-focused model generates recurring royalty and fee income, which produces resilient cash flow without requiring heavy capital investment.

In January 2026, MTY raised its quarterly dividend by 12%, from $0.33 to $0.37 per share. That increase marked the 13th dividend raise since the company initiated quarterly payments at $0.05 per share in November 2010. The stock now yields approximately 4.1%, with a payout ratio of just 20% of earnings, which is one of the lowest among TSX dividend payers.

Having said that, the business has faced headwinds. Second-quarter 2026 revenue fell by 8.2%, amounting to $279.9 million. Resultantly, net income also dropped to $15.5 million from $57.3 million just a year earlier. Same-store sales also softened, and management announced plans to close several underperforming locations.

Despite that, though, the dividend remained comfortably covered, and the low payout ratio gave management room to keep raising it even as the company worked, and continues to do so, through its challenges.

Foolish takeaway

Not every dividend stock needs to be a household name to be worth owning. AltaGas and MTY Food Group have both built a track record of quietly raising payouts year after year, which is something that matters a lot to income investors. Are they the dividend knights investors seek? Maybe not today, but as of this writing, they are definitely on their way to being avid contenders.

AltaGas offers a lower yield but a clear growth runway, backed by regulated utility earnings and a midstream business that continues to expand. MTY Food Group, on the other hand, offers a higher yield with a payout ratio so low that the dividend barely dents earnings, even during a difficult stretch for the restaurant industry.

Neither stock is going to generate explosive capital gains, but for investors who value consistency over spectacle, that quiet reliability is exactly the point.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MTY Food Group. The Motley Fool has a disclosure policy.

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