Buy This Stock, Forget It, Thank Yourself in 10 Years

A 3.6% yield and 54 years of dividend growth make Canadian Utilities the kind of stock you tuck away and don’t touch for 10 years.

Key Points
  • Canadian Utilities is a buy‑and‑hold, dividend‑first utility — 54 consecutive years of annual dividend increases.
  • Its earnings are highly predictable ( >90% rate‑regulated), backed by a $12B 2026–2030 capital plan (Yellowhead pipeline due Q4 2027) and recent Q2 strength (adjusted earnings +16%, operating cash flow +26%).
  • Trading near $50.50 with a ~3.66% yield, it’s well suited for investors who want steady, low‑maintenance income — but watch debt/interest‑rate exposure, regulatory risk, project delays, and historically slow dividend growth.

Most investors check their portfolios too often, and it’s not really something you can be blamed for. It is an easy habit to fall into. The market moves, headlines shift, and the urge to do something becomes hard to ignore.

But the stocks that build real wealth over a decade are rarely the ones that demand your attention. They are dividend stocks that quietly keep doing their job while you get on with your life. Canadian Utilities (TSX: CU) is that kind of stock.

The sun sets behind a power source

Source: Getty Images

Canadian Utilities

Canadian Utilities is among the larger utility companies in Canada, owning and operating energy infrastructure across Canada, Australia, and Puerto Rico, including electricity and natural gas transmission and distribution networks.

More than 90% of its earnings come from rate-regulated assets. In plain terms, regulators approve the rates the company can charge, and those rates are designed to cover costs and generate a reasonable return. That makes cash flow predictable in a way few businesses can match.

People need electricity and natural gas regardless of what the economy is doing. That is why Canadian Utilities has been able to raise its dividend for 54 consecutive years, through recessions, rate hikes, and market crashes.

The number that matters

As of September 21, Canadian Utilities trades at $50.50 per share. The quarterly dividend is $0.46, which works out to $1.85 annually and a yield of roughly 3.7%.

That yield is not going to excite anyone chasing double-digit payouts, but for a stock you plan to forget about for a decade, the starting yield is not the point. The point is that the payout keeps growing, year after year, without you having to do anything.

Canadian Utilities most recently raised its dividend by 1% for 2026, extending the streak to 54 years. That increase was modest, yes, but that is the nature of a regulated utility: steady, predictable, and built for the long haul.

Why the next decade looks promising

The company is not standing still. Canadian Utilities is working through a $12 billion capital plan for 2026 through 2030, focused on regulated utility projects and the Yellowhead Pipeline in Alberta.

That pipeline is fully contracted with customers and is expected to enter service in the fourth quarter of 2027. As those assets go into service, they expand the rate base, which supports future earnings and dividend growth.

The second quarter of 2026 reinforced that trajectory. Adjusted earnings rose 16% to $140 million, and cash flow from operating activities jumped 26%. That is a business quietly getting stronger while most investors look elsewhere.

The risks worth knowing

Canadian Utilities is not risk-free, though. It carries debt to fund its capital program, and rising interest rates make that debt more expensive. Rate decisions in Alberta can also go against the company, and major projects can face delays or cost overruns.

And the dividend growth has been slow over the years. The quarterly payout has expanded by just 5.1% over the past five years, which means that investors hoping for rapid increases will be disappointed.

But for someone buying and forgetting for 10 years, those concerns fade. The company has survived far worse and maintained a stable EPS throughout it all.

Foolish takeaway

Canadian Utilities will never be the most exciting stock in your portfolio. It will not double in a year or become the next big thing in the market any time soon. But what it will do is keep paying you, year after year, with modest increases that add up over a decade.

For an investor willing to buy it, forget about it, and check back in 2036, that quiet reliability is exactly the point.

Fool contributor Adam Othman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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