Some fast-growing growth stocks could become popular because they are rallying. But others build a loyal following for a much simpler reason. They keep delivering and doing the same important job year after year. Canadian Utilities (TSX: CU) is one of those businesses. It does not depend on trendy tech products or a sudden jump in demand. Instead, it operates essential utility and infrastructure assets that people and businesses rely on every day.
That steady business has helped the company build one of the longest dividend growth records in Canada, also giving it confidence to keep investing billions of dollars into new projects. Let me explain the key factors that still make it an attractive dividend stock to buy and hold for decades ahead.
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Canadian Utilities stock
Headquartered in Calgary, Canadian Utilities owns electricity and natural gas transmission and distribution operations, along with power generation, energy storage, and other infrastructure assets in several countries, including Canada, Australia, Mexico, and Puerto Rico.
Over the last year, CU stock has seen a remarkable rally as its share price has jumped 32%. As a result, shares now trade at $50.89 each with a market cap of $10.5 billion. At the current price, the stock offers a 3.7% annualized dividend yield, paid quarterly.
Its dividend yield becomes even more appealing when you consider the company’s excellent dividend growth history. Notably, Canadian Utilities has increased its common-share dividend for 54 consecutive years. In July, the company declared a third-quarter dividend of $0.46 per share, equal to $1.85 per share on an annualized basis.
Strong earnings continue to support its dividends
This company’s decades-long dividend growth track record has mainly been backed by a business that continues to post steady financial growth. In the second quarter of 2026, Canadian Utilities generated adjusted earnings of $140 million, up nearly 16% year-over-year (YoY). The firm’s earnings attributable to equity owners also rose about 15% YoY to $128 million.
For the first six months of 2026, its cash flow from operations also improved nearly 8% YoY to about $1.2 billion. Meanwhile, its subsidiary ATCO Australia remained a bright spot, with the segment’s second-quarter adjusted earnings rising to $34 million from $21 million, largely due to the impact of inflation indexing on its rate base.
A large growth plan is taking shape
In addition to being a company known for decades of dependable dividends, Canadian Utilities also has plenty of long-term growth spending underway. The company plans to invest $12 billion in regulated utility projects between 2026 and 2030. That capital program is likely to help its mid-year rate base grow at a compound annual growth rate of 6.9% over the five years.
A major part of that spending is tied to the Yellowhead Pipeline. This roughly 235-kilometre project is expected to cost about $2.9 billion and provide 1.1 billion cubic feet per day of capacity. Its facility application received regulatory approval in July, and construction began in August. More importantly, the pipeline is already 100% contracted with customers.
Beyond regulated utilities, Canadian Utilities is also investing in natural gas storage, electricity generation, and cleaner energy projects. That said, its regulated businesses still remain the base of the company and continue to support recurring cash flow.
