If there were a single word to define how the market has fared during 2026, it would be volatile. And while we can’t entirely eliminate volatility from the market, there is one Canadian dividend stock that can minimize it.
That stock to consider is Canadian Utilities (TSX: CU), and here’s a look at what it can offer investors.
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A business built around essential services
For those who are unfamiliar with the stock, Canadian Utilities is one of the larger utility stocks in Canada. The company owns and operates energy infrastructure not just in Canada, but also in Australia and Puerto Rico.
Those operations include electricity and natural gas transmission and distribution. Specifically, the regulated utility services that Canadian Utilities provides deliver electricity and natural gas to homes and businesses.
Those are essential services that customers need and pay for regardless of how the economy is faring.
That makes Canadian Utilities one of the more defensive options on the market. Consumers can delay buying a new car or doing a renovation, but that same flexibility doesn’t exist when it comes to powering and heating a home.
The stable and recurring nature of Canadian Utilities’ business model allows the company to predictably invest in growth and pay out a stable, growing dividend.
Why this Canadian dividend stock stands apart
That dividend is one of the key reasons why investors continue to turn to Canadian Utilities in a portfolio.
As of the time of writing, Canadian Utilities offers a quarterly dividend that carries a yield of 3.62%. But that’s not the best part about this Canadian dividend stock.
That honour goes to the incredible growth streak that Canadian Utilities has maintained, currently extending to 54 consecutive years.
Over that period, there have been periods of inflation, recessions, commodity crashes, and market sell-offs. And despite that market volatility, Canadian Utilities has kept that streak going.
The most recent increase was a 1% uptick earlier this year and makes Canadian Utilities one of just two dividend knights in Canada.
How Canadian Utilities keeps growing
Utility stocks like Canadian Utilities have a stereotype. The belief is that they lack opportunities for long-term growth because so much of their earnings are paid out as dividends. Some investors also believe that utilities lack the incentive to pursue growth because of their regulated business models, which are often tied back to multi-decade agreements.
In the case of Canadian Utilities, that stereotype is easily dismissed. The company is actively investing in growing its portfolio. That includes both expanding its asset base through upgrades and new infrastructure and through acquisitions.
When regulators approve new infrastructure, Canadian Utilities can add those investments to its rate base and earn a regulated return. As that rate base expands, it feeds future earnings growth and additional dividend increases.
That doesn’t mean that Canadian Utilities will rival the performance of growth stocks on the market. Instead, the appeal of the stock comes from the gradually expanding business and growing dividend.
Would you hold Canadian Utilities through any market?
Canadian Utilities is the one Canadian dividend stock that will never be the most exciting company in a portfolio. During a bull market, faster-growing stocks will always leave it behind.
That being said, there is still growth potential. Over the trailing five years, its share price has risen by over 45%.
In my opinion, Canadian Utilities is a solid option for investors to consider owning as part of a larger, well-diversified portfolio.
