When investors think about Canadian dividend-growth stocks, the usual names often dominate the conversation. Long-time dividend raisers such as Fortis have earned their reputation through decades of steady increases. However, some lesser-known companies have also been rewarding shareholders with consistent dividend growth. Two Canadian stocks that have quietly increased their payouts for roughly five consecutive years are AltaGas (TSX:ALA) and MTY Food Group (TSX:MTY).

For investors seeking a combination of income and dividend growth, these under-the-radar companies deserve a closer look.

AltaGas: Growing dividends backed by stable cash flows

AltaGas is a North American energy infrastructure company with a business model built on stability and growth. Its regulated utility segment serves about 1.6 million residential, commercial, and industrial customers across the mid-Atlantic and midwestern United States. This business generates dependable, rate-regulated cash flows and accounts for more than half of the company’s operations.

At the same time, AltaGas benefits from growth opportunities through its midstream segment, which gathers, processes, and exports natural gas and liquefied petroleum gases (LPGs) such as propane and butane from Western Canada to premium Asian markets.

This balanced business model has helped support consistent dividend growth. Over the last five years, AltaGas has delivered a dividend-growth rate of approximately 5.5%. Management expects that trend to continue, forecasting annual dividend growth of 5% to 7% through 2030. That outlook is supported by ongoing asset optimization, disciplined capital allocation, strategic growth projects, and continued balance-sheet improvement.

The market has taken notice. The stock has surged roughly 125% over the last three years, reflecting strong LPG export growth, reliable utility earnings, and successful debt-reduction efforts. While the shares appear close to analyst fair-value estimates and currently offer a modest yield of about 2.4%, long-term investors may still find AltaGas attractive for its combination of dividend growth and business momentum. That said, it’d probably be a safer buy on market corrections.

MTY Food Group: An overlooked dividend grower

MTY Food Group operates a very different business, but it has also quietly built a growing dividend streak. The company franchises and operates more than 80 restaurant brands across over 7,000 locations worldwide. Its asset-light, franchise-focused model generates recurring royalty and fee income, helping produce resilient cash flow.

MTY’s portfolio includes well-known brands across multiple dining categories, while its revenue is diversified across the United States, Canada, and international markets. Growth has historically been driven by acquisitions of restaurant concepts that can be expanded using MTY’s operational expertise and established infrastructure.

Recently, the consumer discretionary stock has faced pressure from softer consumer spending and portfolio rationalization efforts. During the first quarter, the company closed 90 locations while opening 52 new ones as it exited weaker franchise relationships. Although these challenges have weighed on investor sentiment, MTY’s profitability and cash generation remain resilient. For example, compared to a year ago, in the first fiscal quarter, it experienced a revenue decline of 6% and normalized adjusted EBITDA, a cash flow proxy, was essentially flat. 

Importantly for income investors, management continues to demonstrate confidence through dividend increases. The company’s most recent dividend hike, announced in January, was 12%. With shares trading about 11% below the analyst consensus price target and offering a yield of roughly 3.6%, investors are being paid to wait for growth to reaccelerate.

Investor takeaway

While many investors focus on Canada’s most famous dividend-growth stocks, AltaGas and MTY Food Group are quietly building impressive dividend records of their own. AltaGas offers stable cash flows and a clear path to continued dividend growth, while MTY combines an attractive yield with the potential for a business recovery. For investors seeking lesser-known Canadian companies that are steadily raising their dividends, both stocks warrant consideration.

The post The Canadian Companies That’ve Been Quietly Raising Their Dividend Payouts appeared first on The Motley Fool Canada.

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends MTY Food Group. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

2026

When it comes to the dividend stocks that every Canadian investor should at least own in part, there are some true quality names that should come to mind. Of course, the upfront yield, at least in my humble opinion, is probably the least important factor when considering which dividend stocks on a screener to pick up.

What comes out on top? I’d argue that value (the price you’ll pay for admission), the dividend growth history, the fundamentals, the capabilities of the managers, and the growth story (you can’t really have dividend growth without growing earnings) are some of the traits to look for. In this piece, we’ll have a look at a pair of names that I think score high marks for each one of the traits that make dividend plays really stand out.

Nutrien

Nutrien (TSX:NTR) is an agricultural commodity producer that just fell into a bear market, now off a fraction over 20%. Indeed, the conflict in the Middle East has made for a rather turbulent climate. And while shares initially surged, the fertilizer play has since been on a steady retreat, with much of the earlier Iran war appreciation now completely wiped out. At this pace, it might not take too long before the year’s gains are gone (up 4% year to date).

With higher energy prices paving the way for heftier shipping costs, Nutrien might actually be in a tricky spot as headwinds come for margins. And higher prices on fertilizer might cause some to cut back, in a phenomenon called demand destruction. Indeed, it’s nice to have higher crop yields, but if the price is too high, perhaps some will choose to go without as they consider crops that don’t need as much fertilizer. Either way, I think that investors should play the long game with Nutrien. In due time, I think the conflict will settle, and things will normalize.

Nutrien is a stellar operator, and geopolitical issues, in my view, will not last forever. For investors looking to cash in on the discount and the nice dividend yield, currently above 3.2% at the time of this writing, I think that buying after a bearish descent could be the move, even if it means riding out more volatility on the way down.

Great-West Lifeco

Great-West Lifeco (TSX:GWO) stock is actually taking off in one of its fiercest bull markets in recent memory. I wouldn’t expect a steady dividend-paying insurance play to blast off 102% in two short years. But that’s exactly what we have with shares of GWO. While hot, the stock isn’t too hot to handle.

Not at the rate earnings are rising. At 17.6 times trailing price to earnings (P/E), the name has value and fundamental momentum at its back. With a robust 10% dividend hike delivered just a few months ago and more robust results likely ahead, I’d continue to nibble on the way up, especially for those who value yields above 3%. Today, the dividend yield sits at 3.15%, but given the potential for double-digit percentage growth, perhaps it’s still prime time to punch a ticket.

The post 2 Dividend Stocks Every Canadian Should Consider Owning appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has no position in any of the stocks mentioned. The Motley Fool recommends Nutrien. The Motley Fool has a disclosure policy.

2026

If you have $14,000 available to invest in your Tax-Free Savings Account (TFSA), you may be looking for a way to generate meaningful, tax-free income without having to constantly monitor the market. While many investors gravitate toward high-yield stocks such as Enbridge or dividend-focused exchange-traded funds (ETFs), one fund jumps out for investors whose primary goal is maximizing income: BMO Canadian High Dividend Covered Call ETF (TSX:ZWC).

With a generous yield, paid out as monthly cash distributions, ZWC can help transform a TFSA into a reliable income-producing machine.

Why income investors should look beyond traditional dividend stocks

Many Canadian investors begin their search for income with blue-chip dividend stocks. Enbridge, for example, currently offers a yield of roughly 4.9%, comfortably above the Canadian stock market’s yield of about 2.1%, as represented by iShares S&P/TSX 60 Index ETF (TSX:XIU).

Another popular choice is iShares S&P/TSX Composite High Dividend Index ETF, which yields approximately 3.6% while providing diversification across major Canadian dividend payers, including banks and energy companies.

However, investors focused on generating the highest possible income may want to consider a different approach. Rather than relying solely on dividends, covered-call ETFs such as ZWC generate additional cash flow by writing call options on their holdings. This strategy can significantly boost distributions while still maintaining exposure to a diversified portfolio of Canadian stocks.

A diversified ETF built for monthly cash flow

Managed by BMO Global Asset Management, ZWC is specifically designed for income-oriented investors. The fund holds roughly 40 dividend-paying Canadian companies and systematically writes covered calls to enhance income and reduce portfolio volatility.

The result is a distribution yield that typically hovers around 6.5%, substantially higher than the broader Canadian market and many traditional dividend ETFs.

For an investor with $14,000 in a TFSA, a 6.5% yield translates to $910 in annual income, or about $76 per month, all sheltered from tax within the account. For investors seeking passive income, that can be a good starting point.

The fund is broadly diversified, with significant exposure to financial services (about 39%), energy (22%), and basic materials (13%). It also includes exposure to these sectors: utilities (9%), communication services (6.5%), industrials (4.7%), and consumer staples (1.4%), helping reduce the risks associated with owning only a handful of individual stocks.

Understanding the trade-off

No investment is perfect, and ZWC’s enhanced income comes with a trade-off. Because the fund writes covered calls, some of its upside potential is capped during strong bull markets.

This has been evident in recent performance. Over the past three years, XIU delivered annualized returns of roughly 22.5%, while ZWC generated annualized returns of about 17.3%. Investors received more income from ZWC, but in exchange, they gave up some capital appreciation.

Additionally, ZWC carries a management expense ratio (MER) of 0.72%, which is higher than that of many passive index ETFs due to the active management required for its covered-call strategy.

Investor takeaway

For investors with $14,000 to invest in a TFSA, BMO Canadian High Dividend Covered Call ETF offers a nice combination of diversification, monthly cash distributions, and a yield that significantly exceeds the broader market. While its covered-call strategy may limit upside during strong market rallies, income-focused investors may find the trade-off worthwhile. Those looking to build a tax-free cash-generating portfolio could consider gradually investing through dollar-cost averaging over the next year, potentially lowering their average purchase price while establishing a dependable stream of income.

The post Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine appeared first on The Motley Fool Canada.

Fool contributor Kay Ng has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy.

2026

Finding dividend stocks that you can confidently hold through every market cycle is a great way to create long-term wealth. Dividend stocks are all about sleeping well at night.

The best dividend stocks combine resilient business models, predictable cash flows, and growing dividends. Here are the top Canadian dividend stocks I’d feel good holding for the next seven years.

AltaGas: A dividend stock to confidently hold for the next seven years

AltaGas (TSX:ALA) has delivered exceptional returns over the past five years. Its stock is up 127% in the past five years. Add in dividends, and shareholders have earned a 179% total return.

This company has quietly transformed into a powerhouse in the past few years. It divested its non-core assets. AltaGas reduced debt from 11 times net debt-to-EBITDA (earnings before interest, tax, depreciation, and amortization) to 4.4 times today! It focused on its American natural gas utilities and Canadian midstream businesses.

A solid utility business

AltaGas benefits from outsized rate base growth in its utility as it looks to modernize its infrastructure. Its utilities are located in some of the top regions for data centre construction.

It is positioning to provide behind-the-metre gas supply and back-up power generation for key data centres in Virginia. Overall, this is a stable business with a steady growth outlook.

A booming midstream operation

Its midstream business is really starting to boom. It is one of Canada’s largest exporters of liquefied petroleum gases (LPG). In fact, 6% of China’s LPG imports and 14% of South Korea’s LPG imports come from AltaGas facilities. LPG supply out of the Gulf regions is halted; demand for AltaGas’s supply is soaring.

AltaGas just delivered very strong first-quarter results. Its export volumes rose 5%. New tanker charters should help accelerate this even faster. Earnings before interest, tax, depreciation, and amortization (EBITDA) rose 18.7% to $818 million! Earnings per share (EPS) increased 16% to $1.33.

AltaGas now expects to hit the top end of its 2026 guidance for EBITDA and EPS. Many analysts believe that if the Strait of Hormuz remains blocked, it could exceed its guidance forecast.

This dividend stock has several catalysts for the future as well. It is building a 56,000 barrels per day export terminal in Prince Rupert. That should be completed in mid-2027. It also has natural gas storage/processing facilities and various other expansions and optimizations in the works. It has over $1.7 billion of capital allocated for growth projects in 2026.

Strong future performance will support strong dividend growth

AltaGas has grown its dividend every year since 2020. It has raised its dividend by a 6% compounded annual growth rate. At the same time, it also drastically improved its balance sheet. Now, it is sitting in a position with excess liquidity.

Today, it seems possible that it could hit the higher end of its annual dividend growth target of 5-7%. Given that its payout ratio sits below 60%, its dividend-growth trajectory appears likely.

This dividend stock yields 2.4% today. While it is not the biggest dividend yield, investors have enjoyed a great total return profile of 22% compounded annual growth. It’s a great utility-like stock to buy and hold for the coming seven years.

The post 1 Dividend Stock I’d Feel Good About Holding for the Next 7 Years appeared first on The Motley Fool Canada.

Fool contributor Robin Brown 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.

2026

With no steady income after retirement, retirees often rely on passive income to meet their day-to-day expenses. As preserving capital becomes just as important as generating income, many retirees prefer investments that offer stability, dependable cash flows, and lower volatility. Additionally, shorter investment horizons leave them less time to recover from market downturns, making a conservative, risk-aware approach essential.

Given these priorities, retirees should focus on high-quality dividend stocks with resilient business models, consistent cash flows, and a strong history of dividend payments. Such investments can help generate reliable passive income while also adding stability to their portfolios. With that in mind, here are two high-yield dividend stocks that could be excellent choices for retirees.

Enbridge

Given its resilient business model, dependable cash flows, consistent dividend growth, and attractive long-term growth prospects, I believe Enbridge (TSX:ENB) is an excellent option for retirees seeking reliable passive income. The company derives nearly 98% of its adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) from long-term take-or-pay contracts and regulated assets, thereby generating stable, predictable earnings. In addition, approximately 80% of its earnings are protected by inflation-indexed mechanisms, helping shield its financial performance from rising costs.

Supported by this reliable business model, Enbridge has built a strong track record of rewarding shareholders. The company has paid dividends for over seven decades and has also increased its dividend for 31 consecutive years. Its current quarterly dividend payout of $0.97 per share yields 5.02% at current levels.

Meanwhile, rising oil and natural gas production in Canada continues to drive demand for Enbridge’s infrastructure and services. To capitalize on these opportunities, the company has identified around $50 billion in growth projects through the end of the decade. It plans to invest approximately $10-$11 billion annually to support its expansion initiatives. Backed by these investments, management expects adjusted earnings per share and distributable cash flow per share to grow at an annualized rate of roughly 5% over the remainder of the decade.

Enbridge also maintains a solid financial position, supported by $12.7 billion in liquidity. Given its healthy balance sheet and visible growth pipeline, management is hopeful of returning $40-$45 billion to shareholders over the next five years, reinforcing the sustainability of its future dividend payments and increases.

SmartCentres Real Estate Investment Trust

Another Canadian dividend stock that appears well-suited for retirees is SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which owns and operates 200 strategically located properties across Canada. Notably, nearly 98% of the Canadian population lives within 10 kilometres of at least one of its properties, highlighting the strength and reach of its real estate portfolio. Its tenant base is also highly resilient, with about 95% of tenants having a regional or national presence and nearly 60% operating essential-service businesses. As a result, the REIT continues to maintain strong occupancy and rent collection rates even during periods of economic uncertainty.

Supported by healthy occupancy levels, solid leasing activity, and rising rental rates, SmartCentres has delivered stable financial performance and reliable cash flows. This strength enables the REIT to reward investors with attractive monthly distributions. It currently pays a monthly distribution of $0.1542 per unit, which translates into a compelling forward yield of 6.35%.

In addition, SmartCentres continues to expand and enhance its portfolio to support long-term growth. The REIT currently has approximately 0.8 million square feet of properties under construction, while another 87 million square feet of projects are in various stages of planning and development. These expansion initiatives could strengthen its future financial performance and cash flows, supporting continued distribution growth and sustainable passive income for retirees.

The post 2 High-Yield Dividend Stocks That Could Be Safer Picks for Canadian Retirees appeared first on The Motley Fool Canada.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

2026

Canadian pensioners are searching for good TSX dividend stocks to add to their self-directed Tax-Free Savings Account (TFSA) portfolio focused on generating reliable and growing passive income.

In the current market conditions, where stocks are trading near record highs and economic turbulence might be on the way, it makes sense to consider stocks that have long track records of delivering steady dividend growth through challenging economic conditions.

Enbridge

With a current market capitalization near $170 billion, Enbridge (TSX:ENB) is a giant in the North American energy infrastructure industry.

The business continues to grow through a combination of strategic acquisitions and internal projects. Enbridge diversified its asset portfolio in recent years through several moves that added export facilities, a renewable energy developer, and natural gas utilities. These businesses, when combined with the legacy oil and natural gas transmission infrastructure, have positioned Enbridge to benefit from new trends in the energy sector.

Demand for Canadian and American oil and natural gas is increasing as global buyers seek out reliable supplies from stable countries. Enbridge owns an oil export terminal in Texas and is a partner on the Woodfibre liquefied natural gas (LNG) export facility being built in British Columbia.

The company’s purchase of three natural gas utilities in the United States in 2024 for US$14 billion came just before interest in new gas-fired power generation facilities started to balloon as tech firms look to source electricity from new gas-fired power-generation facilities to feed AI data centres.

Enbridge’s solar and wind development group is also benefiting from demand for more renewable power from tech firms.

Earnings

Enbridge reported solid first-quarter (Q1) 2026 results that were largely in line with the same quarter last year. The company’s secured growth program is now at $40 billion, spread out across the various business groups.

Management is targeting adjusted earnings per share and adjusted distributable cash flow growth of about 5% annually over the medium term. This should support steady annual dividend hikes. Enbridge raised the dividend in each of the past 31 years.

Investors who buy ENB stock at the current price can pick up a dividend yield of 5%.

Risks

Enbridge uses debt to fund part of its capital program. This is normal for pipeline companies that invest billions of dollars in projects that can take years to complete. When interest rates increase, as they did in 2022 and 2023, the jump in borrowing costs can cut into profits while reducing cash that is available for distributions to shareholders.

The drop in Enbridge’s share price in 2022 and 2023 was directly related to rising interest rates in Canada and the United States. Enbridge started its rebound as soon as the central banks indicated they were done hiking rates. The rate cuts in 2024 and 2025 provided an extra tailwind.

Rising inflation caused by high oil prices could force the Bank of Canada and the U.S. Federal Reserve to increase rates later this year or in 2027. If that happens, and inflation rises more than expected, Enbridge’s share price could give back some gains.

The bottom line

Near-term weakness is possible, but pullbacks would be viewed as an opportunity to add to the position. Enbridge offers an attractive dividend that pays you well to ride out turbulence. If you have some cash to put to work in a buy-and-hold income portfolio, Enbridge deserves to be on your radar.

The post Retirees: 1 Canadian Dividend Stock to Buy Now and Hold for Years appeared first on The Motley Fool Canada.

The Motley Fool recommends Enbridge. The Motley Fool has a disclosure policy. Fool contributor Andrew Walker has no position in any stock mentioned.

2026

It’s pretty boring to hang onto the shares of utility stocks. Predictability and less excitement are when you’re getting, especially compared to more growth-oriented names.

And while they are far less likely to experience those parabolic surges over a span of a few months or even a few weeks, the top utilities can act as long-term stabilizers for your portfolio. When volatility returns, as it often does for a wide range of reasons, it’s nice to have a steady Eddie dividend payer at the core of one’s portfolio.

Time to play defence with utility stocks?

With broad markets experiencing considerable pressure on Friday’s session, as the semiconductor names and much of the tech sector led the way lower, questions linger as to whether stability with the utilities is the best play moving forward, as profit-taking in the heated names starts to really get going as we head into one of the biggest tech initial public offering (IPO) seasons in recent memory.

Of course, when it comes to the utility stocks, the added stability, certainty, and better night’s sleep often come at the cost of potential returns over time. Indeed, a lack of surprises also means a lack of positive, needle-moving, delightful surprises as well.

And while staying the course with a heavy weighting in a top utility play with a nice dividend might come at the cost of subpar results (or even market-trailing returns) over time, I do think that the utility plays might be entering a new era where they can be, in fact, as exciting as they are reliable.

With the AI revolution continuing to play out, there’s been more focus put on the energy names and the grid needed to transport that energy further downstream.

Fortis stock an exciting capital gains play?

Any way you look at it, the utility plays might be well worth the slightly higher premium they might carry today. Just have a look at shares of Fortis (TSX:FTS), which are up close to 40% in the past two years. Those are some pretty stunning returns from a stable utility stock.

Though the name is trading at a slight premium relative to historical averages at around 23.0 times trailing price to earnings (P/E) with a 3.3% dividend yield (it’s far less than the 4% the stock once commanded), I still think the name looks quite cheap relative to the defensiveness you’re getting, the predictable earnings and dividend growth, as well as the potential boost that artificial intelligence (AI) will have over the extremely long term.

Sure, AI is thrown around a lot as a positive for just about every firm, but in Fortis’s case, it’s a genuine long-term tailwind. What’s more, though, is that Fortis is a profitable company that could be made even more profitable at the hands of the AI boom.

Like it or not, the grid will need many upgrades to keep up in the AI age. And Fortis will be just one of the many pivotal “boring” utility plays that are going to do their part. Additionally, let’s not forget about the many ways Fortis can use AI to improve operations and save money. At the end of the day, there are automation gains to be had in the utility space as well!

All considered, I view FTS stock as not only a name that can hold up on those really bad days (the stock actually rose 1.4% on one of the worst days for the Nasdaq 100 in quite a while), but as a great long-term play to grow one’s wealth while getting paid a fat, growing dividend.

The post The Utilities Play: Boring, Realiable, and Suddenly Very Profitable appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has positions in Fortis. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

2026

Depending on where you look, you may perceive stocks as wildly overvalued or fairly priced. Of course, even with extended multiples and broad strength across the board, value investors can still pick and choose corners of the market that possess a good risk/reward. And even the names that are trading at the higher end of the historical range might still offer a decent deal, given the trajectory of earnings.

Either way, this piece will look into two names that could still be worth picking up for investors hungry for undervaluation in a market that some consider to be getting a bit on the frothy side. For the most part, though, I think the TSX Index is more or less fairly valued, and that makes staying the course and continuing to invest the best move going forward.

National Bank of Canada

National Bank of Canada (TSX:NA) shares may have gained over 55% in the past year, but they’re still hardly expensive at 18.45 times trailing price to earnings (P/E). The 2.56% dividend yield, though bountiful, is definitely on the small side, especially for a bank. But in this bull market in the banks, that’s the new 4%.

Looking ahead, National Bank of Canada looks poised for more strong quarters, especially as the Bank of Canada keeps holding off on hikes. Indeed, stable rates are good news for the banks. And even if inflation becomes a problem again, I wouldn’t expect a hike or two to derail the big run in the bank stocks.

With the wealth management and capital markets business firing on all cylinders while the bank continues to raise the bar on return on equity (ROE), perhaps with a bit of help from AI, I think shares of NA are still worth paying a premium for. Though it’s less of a passive-income play these days, I still think those seeking total returns over time may wish to stick with the name.

Berkshire Hathaway

When it comes to value, Berkshire Hathaway (NYSE:BRK.B) shares are starting to look rich with it. Indeed, it’s hard to tell how many of the Warren Buffett fans have sold shares and moved on. Even with a new CEO at the helm, a Canadian in Greg Abel, I find Berkshire Hathaway could still be a winning investment over time, especially if you’re able to pick up shares after a period of relative underperformance.

At $485 per share, the stock is stuck in limbo, all while the S&P powers higher, led by the AI revolution. Indeed, with Berkshire’s cash hoard swelling, it feels like Berkshire could start trailing for some time. Either way, though, I view the conglomerate’s optionality as a unique asset, especially for those who want a more defensive play as market valuations fly higher and an AI boom south of the border looks to fuel an AI bubble.

AI bubble or not, it’s hard to tell how the boom in some parts of the AI trade will end. In any case, one has to think Berkshire, which hasn’t done anything in the past year, will be spared. It’s the ultimate defensive, in my view.

The post 2 Overlooked Stocks That Still Look Cheap Right Now appeared first on The Motley Fool Canada.

Fool contributor Joey Frenette has positions in Berkshire Hathaway. The Motley Fool recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.

2026

Data centres used to sound like someone else’s problem. Now, they look like one of Canada’s biggest investment themes. Artificial intelligence (AI) needs enormous computing power. Cloud services need more storage. Businesses need faster networks, safer data, and better logistics around the equipment feeding this buildout. Investors can chase chip stocks, of course. But Canadian investors have other ways to play the trend without leaving the TSX.

TELUS (TSX:T) and Granite REIT (TSX:GRT.UN) offer two very different angles. Telus gives investors exposure to networks, cloud infrastructure, and sovereign AI data centres. Granite offers industrial real estate that supports the warehouses, logistics hubs, and distribution space needed around a larger digital economy. Neither stock gives investors a perfect pure play, but could actually make both more useful for long-term buyers.

T

Canada wants more homegrown AI infrastructure. In May, the federal government said it was advancing work with Telus on sovereign AI infrastructure after a call for large-scale data centre proposals. Telus says the planned cluster could scale to more than 60,000 GPUs and 150 megawatts by 2032. That gives the company a direct role in the next phase of Canadian AI spending.

The business snapshot remains simple. Telus sells wireless, internet, TV, security, health technology, and digital services. Those mature telecom operations generate the cash needed to fund newer growth areas. In the first quarter of 2026, Telus reported cash from operations of $1.05 billion and free cash flow of $583 million, up 19% from last year, and data centres and networks cost real money before they produce meaningful returns.

The catalyst comes from demand for Canadian-controlled AI infrastructure. Governments, hospitals, banks, and enterprises care about where sensitive data lives. Telus can pitch secure, domestic infrastructure alongside its existing customer relationships. It also has a large dividend, which gives investors income while the AI strategy develops.

Still, investors should not ignore the risks. Telus carries debt, faces tough competition, and needs to keep capital spending under control. Telecom stocks also move slowly compared with splashier AI names. So, this stock may not take off overnight, but if Canada keeps pushing sovereign AI, Telus could become more important than many investors realize.

GRT

Granite REIT plays the boom from the physical side. Data centres don’t appear out of thin air. They need servers, cooling equipment, electrical gear, backup systems, spare parts, and construction materials. All of that needs supply chains. Granite owns and manages logistics, warehouse, and industrial properties across North America and Europe, which gives it exposure to the real estate backbone behind modern commerce.

The latest results showed the kind of stability real estate investment trust (REIT) investors want. In the first quarter of 2026, Granite reported adjusted funds from operations (AFFO) of $1.52 per unit and an AFFO payout ratio of 63%. The trust also reported strong same-property net operating income growth and continued leasing momentum. That tells investors the business still has demand even in a higher-rate world.

The catalyst here is space. As data centre construction grows, nearby logistics assets become more valuable. Companies need locations to store equipment, move inventory, and support technicians. Granite’s properties are not all data centre sites, and investors should not pretend they are. But industrial real estate can benefit from the same buildout cycle.

Granite also pays a monthly distribution, which can appeal to investors who want income while waiting for growth. The risk comes from interest rates, development costs, and tenant demand. REITs can struggle when borrowing costs stay high. Granite also needs disciplined acquisitions to keep per-unit growth moving.

Bottom line

Together, Telus and Granite give investors a broader way to think about data centres. Telus supplies digital infrastructure. Granite supplies real-world infrastructure. And together, both can bring in strong income even with $7,000 before data centres really take off.

The boom still has risks, but Canada needs both pieces if it wants to build the next generation of technology at home over the coming years.

The post 2 Canadian Stocks Built for the Data Centre Boom appeared first on The Motley Fool Canada.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust and TELUS. The Motley Fool has a disclosure policy.

2026

A high dividend yield can be attractive, but only if the underlying business has solid fundamentals and continues generating the cash flow needed to support it. That is especially true in the energy sector, where commodity prices can move quickly and expose weaker companies.

Fortunately, not every energy stock relies on the same formula. Some TSX-listed businesses have built models designed to generate income through different market environments, whether through royalties, infrastructure assets, or disciplined production growth. Those approaches tend to create more resilient cash flows and, in turn, support generous shareholder payouts for decades.

In this article, I’ll highlight three high-yield Canadian energy stocks you can buy in 2026 and hold for years to come.

A royalty stock built for monthly income

The first stock that fits well for income-focused investors is Freehold Royalties (TSX:FRU), thanks to its consistent cash flow model. As a North American energy royalty firm, it has oil and natural gas royalty interests across Canada and the United States, including exposure to major basins.

Following a 37% rally over the last year, Freehold stock recently traded at $17.15 per share, giving it a market cap of about $2.8 billion. At this market price, its dividend yield sits near 6.3%, paid monthly.

The company’s recent momentum has been helped by acquisitions and drilling activity across its royalty lands. In the first quarter, Freehold invested $19 million to acquire royalty-interest lands in the Permian Basin, while production reached 15,533 barrels of oil equivalent per day (boe/d). Its funds from operations (FFO) came in at $59 million, reflecting the strength of its asset base.

Overall, this monthly dividend stock’s long-term appeal comes from its royalty model, liquids-weighted North American asset base, exposure to high-quality U.S. oil plays, and ability to generate cash flow with limited operating capital needs.

Gibson Energy stock offers infrastructure-backed cash flow

For investors who prefer energy infrastructure, Gibson Energy (TSX:GEI) could be a great buy-and-hold stock in 2026. The company focuses on the storage, optimization, processing, and gathering of liquids and refined products, with core terminal assets in Alberta and Texas.

Gibson stock recently traded at $29.51 per share with a market cap of about $5.1 billion. Its shares are up 26.1% over the last 12 months, while its dividend yield is close to 6.1%.

Recently, the company completed the $400 million Chauvin acquisition and sanctioned the Hardisty Connection project, both of which should support future cash flow.

In the first quarter, Gibson generated infrastructure EBITDA (earnings before interest, taxes, depreciation, and amortization) of $156 million, helped by higher throughput across its major facilities.

Gibson stock remains compelling for long-term investors because of its contracted infrastructure platform, strategic terminal assets, solid balance sheet, and expanding connectivity across key North American energy hubs.

Peyto stock keeps growing production

The final stock on this list is Peyto Exploration & Development (TSX:PEY), a company known for its efficient operations. The Calgary-based company develops natural gas, oil, and natural gas liquids assets in Alberta’s Deep Basin.

After climbing 38% in the last year, Peyto stock recently traded at $25.03 per share with a market cap of about $5.1 billion. It also rewards investors with monthly dividends, with its yield currently sitting at roughly 5.8%.

Its first-quarter results were strong, with record production of 147,513 boe/d, up 10% year over year (YoY). The company’s FFO reached $293 million, while earnings totalled $171.1 million.

During the quarter, Peyto also drilled 23 wells and acquired 41 gross sections of undeveloped land, adding depth to its future drilling inventory.

Moreover, its low-cost operations, disciplined capital allocation, strong production growth, and balance sheet strength make Peyto stock really appealing for long-term investors seeking energy sector exposure.

The post 3 Ultra-High-Yield Energy Dividend Stocks to Buy and Hold for 2026 appeared first on The Motley Fool Canada.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Freehold Royalties and Gibson Energy. The Motley Fool has a disclosure policy.

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