With Canadian interest rates sitting still (policy interest rate at 2.25%), income-focused investors may have a reason to look beyond traditional fixed-income investments. For investors seeking established businesses that can generate recurring cash distributions, here are two Canadian-listed names as interesting candidates for further research: Enbridge (TSX: ENB) and Brookfield Renewable Partners L.P. (TSX: BEP.UN).
Neither investment is risk-free, but both offer exposure to businesses built around long-lived assets and recurring cash flows.
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Enbridge: Income backed by essential infrastructure
Enbridge is one of Canada’s most prominent infrastructure companies, with operations spanning pipelines, natural gas transmission, and related energy infrastructure. Its business model may attract dividend investors because much of its cash flow is supported by long-term contracts and regulated assets with little exposure to the ups and downs of commodity prices.
The company last increased its common stock dividend by about 3% in December 2025, taking the annualized payout to $3.88 per share. That marked its 31st consecutive annual dividend increase. Enbridge also provided 2026 guidance for distributable cash flow of $5.70 to $6.10 per share, giving investors an important measure of the safety of the dividend. It indicates a projected sustainable payout ratio of roughly 66%.
That does not make Enbridge risk-free, though. The company carries substantial debt, and higher long-term borrowing costs can affect financing expenses and valuation. Still, its recurring infrastructure cash flows and lengthy dividend-growth record (and an even longer dividend-paying history of over 70 years) provide some confidence for investors who prioritize income.
At around $68 per share at writing, Enbridge stock offers a yield of nearly 5.7%, which is much higher than the Canadian stock market’s yield of about 2.2% (using iShares S&P/TSX 60 Index ETF as a benchmark.)
Brookfield Renewable: Income with a renewable-energy growth engine
Brookfield Renewable Partners provides a very different type of dividend opportunity. The partnership owns and operates renewable power assets across hydroelectricity, wind, solar, and other sustainable energy businesses around the world. Its portfolio spans over 47 gigawatts of operating capacity, with a development pipeline exceeding 200 gigawatts.
BEP offers a distribution yield of about 5.3%. Management targets 5% to 9% annual distribution growth. This distribution is supported by long-term contracts. Approximately 90% of its operating cash flows are contracted for an average of 12 years, and about 70% of its revenues are indexed to inflation.
The company’s growth potential is attractive. Brookfield Renewable reported trailing-12-month funds from operations (FFO) per unit of US$2.14 per unit, representing 12% year-over-year growth with a recent payout ratio of about 70%. The company also continues investing in acquisitions and development projects as electricity demand grows.
There are important risks. Renewable infrastructure can require significant capital, while financing costs, project execution, power prices and regulatory changes can affect returns. Investors should also note that Brookfield Renewable has proposed simplifying its corporate structure in the fourth quarter, a transaction expected to preserve investors’ economic exposure while changing the structure of their investment into a corporation, suggesting it will pay out eligible dividends.
The bottom line
Enbridge and Brookfield Renewable offer some of the highest but safe yields on the Toronto Stock Exchange. For investors assessing dividend stocks while interest rates remain unchanged, both companies merit closer examination, especially on meaningful market corrections. The key is not simply the size of today’s distribution, but whether the underlying businesses can continue generating enough cash flow to support future distributions and growth.
