While Interest Rates Sit Still, These 2 Dividend Giants Look Good

Looking for more income? Check out these two high-income stocks!

Kay Ng

Author Bio Kay graduated from the University of British Columbia with a Bachelor of Science in Computer Science and furthered her studies in financial markets, finance, and financial accounting. She began investing in dividend stocks in 2008, turning an early interest into a lasting passion. Over the years, Kay has refined her investment approach to focus on high-quality businesses, using fundamental analysis and valuation to identify long-term investment opportunities. Her investment research and articles have been featured in The Motley Fool, Sure Dividend, and Seeking Alpha. Outside of investing, Kay enjoys playing the piano, from popular songs learned by ear to challenging classical compositions. Her favourites include Fantaisie-Impromptu by Frédéric Chopin and La Campanella by Franz Liszt. Education Bachelor of Science (BSc) in Computer Science, University of British Columbia Further studies in financial markets, finance, and financial accounting Areas of Expertise Dividend stocks, fundamental analysis, company valuation, quality investing, long-term investing, business fundamentals, and identifying investment opportunities in high-quality companies. Social Media Profiles LinkedIn Favorite Investment Quotes “The best way to measure your investing success is not by whether you’re beating the market but by whether you’ve put in place a financial plan and a behavioral discipline that are likely to get you where you want to go.” — Benjamin Graham “A market downturn doesn’t bother us. It is an opportunity to increase our ownership of great companies with great management at good prices.” — Warren Buffett

Published September 18, 3:45 pm EDT

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.

Offshore wind turbine farm at sunset — Source: Getty Images

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.