When I look for dividend stocks to hold for decades, I favour companies that balance income with growth. They generate cash from existing assets, pay a portion to shareholders, and reinvest the rest to expand the business. Gibson Energy (TSX:GEI) is increasingly showing those qualities, offering investors a 5.7% annualized yield while continuing to invest in infrastructure that could support its future dividends.

Its core Infrastructure business just delivered record adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) and strong distributable cash flow. Gibson is also putting more capital behind projects that could deepen its position in North America’s energy network.

In this article, I’ll explain why Gibson Energy’s combination of a 5.7% yield, record infrastructure performance, and new growth projects makes it one of my favourite long-term income stocks.

Gibson Energy stock

Headquartered in Calgary, Gibson stores, gathers, processes, and helps optimize liquids and refined products across North America. Its infrastructure network includes oil terminals, pipelines, rail loading and unloading facilities, and a crude oil processing facility.

GEI stock currently trades at $31.86 per share with a market capitalization of about $5.5 billion. Although the stock has slipped roughly 3.4% recently, its shares are still up about 11% over the last year. Income investors also get a 5.7% annualized dividend yield at the current market price.

Record infrastructure performance

For a dividend stock you plan to own for decades, an attractive yield becomes even more valuable when the underlying business keeps expanding. More importantly, Gibson’s latest results show that its growing infrastructure portfolio is actually translating into stronger operating performance.

In the second quarter, the energy infrastructure firm generated record infrastructure-adjusted EBITDA of $169 million. That figure rose about 11% year-over-year (YoY), mainly due to higher throughput at the Gateway and Edmonton terminals, contributions from the Chauvin Infrastructure Assets, and benefits from restructuring efforts.

Gibson’s marketing segment adjusted EBITDA also nearly doubled YoY to $15 million from about $8 million. Improved margins from higher crack spreads and diversification of its refined products mix supported that increase.

At the consolidated level, Gibson’s adjusted EBITDA climbed about 15% YoY to $169 million. Its second-quarter net income jumped roughly 37% YoY to $83 million, mainly because of stronger segment results and lower income tax expense. However, higher general and administrative expenses and costs related to the Chauvin acquisition and integration partly offset those positives.

Just as importantly for dividend investors, the company’s distributable cash flow increased about 18% YoY in the latest quarter to $96 million. That cash generation adds another layer to its appeal as a long-term income stock.

Building the next leg of growth

In May, Gibson completed its $400 million acquisition of the Chauvin Infrastructure Assets and sanctioned the Hardisty Connection growth project. The company is also advancing the Chauvin expansion project, reinforcing its strategy of growing its infrastructure business over the long run.

Along with that expansion, Gibson has taken steps to maintain financial flexibility. In July, it issued $400 million of 4.5% senior unsecured notes due in 2034 to refinance amounts drawn under its revolving credit facility. The company also extended the maturity of that revolving facility to June 2031.

Overall, Gibson’s record Infrastructure performance, rising distributable cash flow, and investments in new growth projects give the business a solid foundation for the years ahead. Those qualities, coupled with its attractive 5.7% dividend yield, make GEI a compelling dividend stock to buy now and hold for the long haul.

The post Why This 5.7% Dividend Stock Is a ‘Forever’ Buy for Me appeared first on The Motley Fool Canada.

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

At first glance, Enbridge’s (TSX:ENB) stock’s 5.4% dividend yield offering appears to paint it as a better dividend stock to buy right now for passive income, especially when compared to energy sector giant Canadian Natural Resources’s (TSX:CNQ) 3.8% offering. However, the investment decision may not be that simple for income-oriented investors looking to buy and hold a superior Canadian dividend stock over the next five years and beyond.

While past performance isn’t indicative of future returns, CNQ stock’s massive 316% total return, which included substantially raised dividends, leaves Enbridge stock’s 97.9% comparable return too far behind.

In hindsight, CNQ stock has outperformed ENB because oil prices surged, and acquisitions have been accretive to earnings growth. But oil prices will still remain volatile into the next five or more years, and the acquisitions-led growth strategy remains very much alive. This complicates investment decisions for sure.

If you are deploying fresh capital today, which stock between ENB and CNQ offers the better risk-reward profile over the next five years? Let’s break down the numbers.

Cash flow visibility vs. explosive dividend growth

Enbridge stock has experienced a roughly 10% drawdown over the past month, creating an intriguing investment opportunity for passive income seekers. Because Enbridge operates primarily as a midstream pipeline operator and gas utility, over 98% of its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) is backed by long-term, fee-for-service contracts or low-risk regulation. This gives Enbridge exceptional earnings and cash flow visibility – shielding its 5.4% dividend payout from volatile crude oil prices.

Canadian Natural Resources, on the other hand, is Canada’s premier oil and gas producer. While exposed to global commodity price swings, its long-life, low-decline assets allow it to generate massive free cash flow even during moderate price environments. Powered by this relatively “all-weather” cash flow engine, CNQ stock has grown its dividend at a far faster pace over the past five years (boasting a 22% compound annual growth rate) compared to Enbridge’s steady 3% annual hikes.

Valuation matters

When looking under the hood at valuation, the contrast between ENB stock and CNQ stock is stark.

Enbridge trades at a forward Enterprise Value-to-EBITDA (EV/EBITDA) ratio of 13.1 and a Price-to-Free Cash Flow (P/FCF) multiple of 34. This makes the pipelines giant more expensive to buy for passive income compared to Canadian Natural Resources stock, which trades at a forward EV/EBITDA of just 6.9 and a P/FCF of 11.1.

CNQ stock is dramatically cheaper to buy right now. Low valuations reflects currently elevated oil prices during the Iran war, and investors are discounting next-year earnings and cash flow expecting oil prices to stabilize lower after the disruptive conflict.

While utility-like cash flow stability adds valuation premiums on Enbridge as it embarks on renewable energy projects, CNQ’s low valuation provides a wider margin of safety and significantly greater capital appreciation potential if global oil demand and oil prices remain firm.

Key risks and opportunities to consider

Enbridge’s steady cash flow base enables management to embark on successful five-year investment budgets. The same visibility extends to ENB’s dividends. The company’s high exposure to growing North American gas demand enhances its cash flow growth potential while its legacy pipelines, including the Mainline system, remain critical infrastructure for the entire Canadian oil industry.

That said, Enbridge’s substantial debt load makes the stock more sensitive to elevated interest rates than CNQ, while its mature asset base limits annual dividend increases to the 3% to 5% range.

Meanwhile, Canadian Natural’s deep inventory of oil assets, low decline rates, and low breakeven points makes the energy stock an industry star as U.S. shale production matures and Canadian export capacity expands. CNQ remains capable of executing above-average dividend raises and material stock repurchases that enhance total shareholder returns. However, it remains vulnerable to deep global oil price downturns.

Which dividend stock to buy?

If your primary goal is maximizing immediate passive income with minimal exposure to commodity price swings, Enbridge stock remains a dependable 5.4%-yielding dividend stock to buy for higher passive income.

Investors focused on total return over the next five years may get better gains in Canadian Natural Resources stock. CNQ’s deeply discounted valuation, commitment to returning free cash flow to shareholders, and an established track record of rapid dividend raises during oil rallies give it a distinct edge for compounding wealth over time – if oil prices cooperate.

The post CNQ or Enbridge? Here’s the Better Dividend Stock Right Now appeared first on The Motley Fool Canada.

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• Here Are 2 Dividend Stocks I’m Not Selling for 5 Years

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.

The 11% dividend yield has met its fate. Telus Corporation (TSX:T) was boasting a 9-11% dividend yield as the market was pulling off petals: “will cut dividends” or “won’t cut dividends” until the answer was finally out on July 31. It’s official: Telus has slashed dividends by 55%, paused the 2% dividend-reinvestment plan (DRIP) discount from October 1, 2026, and reduced the long-term dividend payout ratio to 45-60% from 60-75%. That’s too much to take … or is it?

A year ago, BCE (TSX:BCE) announced the same changes. It paused the 2% DRIP discount on dividends payable on July 15, 2025. Instead of treasury stocks, the company began buying shares from the open market for DRIP. It slashed the annual dividend by 56% and reduced the long-term dividend payout target to 40%-55% of free cash flow (FCF) from 65%-75%.

Even though Telus adopted a different strategy to tackle price competition, it could not escape the need to invest in artificial intelligence (AI) despite a highly leveraged balance sheet.

What’s actually happening with Telus’s dividend?

A company pays dividends from the free cash flow (FCF) left after servicing debt and capital expenditure requirements. Until 2022, Telus had the pricing power that increased FCF and supported dividend growth. But the aggressive price competition from 2023 to 2025 harmed the margins and FCF.

Still, the management thought it would reduce capital expenditure and focus on debt repayment to increase its FCF. However, it was paying more than 100% of free cash flow in dividends after adding DRIP dividends.

Telus reports dividend payout net of DRIP. Hence, 75% of its FCF, or $1.63 billion, is actually paid out in cash dividends. The $860 million paid out in DRIP shares only defers dividend payments to a future date.

How will your Telus dividend be affected?

If you have been blinded by the 11% yield and bought Telus stock in bulk, your dividend payouts are about to nosedive. For the first two quarters, Telus paid $0.4184 in quarterly dividends, but for the next two quarters, it will pay $0.1875. This reduces the annual dividend per share for 2026 to $1.21 ($0.4184 + $0.4184 + $0.1875 + $0.1875). For 2027, the annual dividend will be $0.75 ($0.1875 x 4 quarters), assuming no more dividend cuts.

A person owning 1,000 shares of Telus will see their annual dividend fall by 54% from $1,637 in 2025 to $750 in 2027.

Considering Telus shares were trading at $22 back in 2025, 1,000 shares would have cost you $22,000, and a $750 dividend is just a 3.4% dividend yield. And don’t forget the value of your investment has reduced to $13,500.

What’s next for Telus’s dividends?

Note that Telus has reduced its long-term dividend payout target to 45%-60%. In 2025, it spent $1.63 billion in cash dividends net of DRIP, which will reduce to $733 million in 2027.

Telus has also reduced its 2026 FCF guidance from $2.45 billion to $1.8 billion and expects to grow FCF by 10% annually from the new base. The dividend cut will help reduce the cash dividend payout ratio for 2027 to 37% if the company actually meets its FCF guidance.

However, BCE’s restructuring has taught us that FCF is affected in the short term by restructuring costs and lost cash flows from discontinued operations. I expect Telus’s dividend will remain $0.75 for at least two years until restructuring is over and cash flows have stabilized.

Final takeaway

To buy or not to buy Telus shares at the new 5.54% dividend yield is a decision not to be taken in haste. There are many moving elements. It’s time to be patient and avoid taking new positions until there is clarity. The new corporate strategy will determine whether it is a turnaround stock with immense capital appreciation or whether it has further downside before a rally.

The post What’s Actually Going On With Telus’s Dividend? appeared first on The Motley Fool Canada.

More reading

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• I Looked Past the 6.2% Yield: Here’s What Else This TSX Stock Offers
• Why I’m Still Watching This TSX Stock After Its Big 15% Drop
• I’m Trying to Turn $20,000 Into $270 a Quarter in My TFSA
• 3 Ridiculously Cheap Canadian Dividend Stocks to Buy Now and Hold for Years

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

Even with only a few years of investing experience, you may already know that a cheap stock isn’t always a bargain, and a high dividend yield doesn’t necessarily make it the best income investment. That is exactly what makes Telus (TSX:T) and BCE (TSX:BCE) worth comparing this August.

Telus has taken a beating in 2026, with its shares now sitting close to their 52-week low following a dividend reset and weaker full-year guidance. BCE has faced its own challenges, but its latest quarter brought modest growth in revenue, adjusted earnings, and fibre subscribers. After both Canadian telecom giants reported their latest results, the difference between them became much clearer.

In this article, I’ll compare Telus and BCE to see which is the better buy this August.

BCE looks stronger right now

For investors looking for the better mix of dividend income and recent business momentum, BCE appears to have the edge right now. The company provides wireless, broadband Internet, television, media, and business communication services across Canada. Its acquisition of Ziply Fiber has also given the telecom giant exposure to the U.S. fibre market.

BCE stock currently trades at $32.48 per share with a market cap of $30.3 billion and an annualized dividend yield of roughly 5.4%.

BCE shares are down about 3.3% over the last year, but the stock has gained roughly 7.3% in the last month. That recent strength comes after a fairly encouraging second quarter.

The company’s revenue in the latest quarter climbed 1.5% year-over-year (YoY) to $6.2 billion. Its adjusted earnings rose 3.2% to $0.65 per share, while adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) inched up by 1% to $2.7 billion.

Several parts of the business helped support those results. Ziply Fiber contributed to service revenue growth, while Bell Media also posted stronger performance. Fibre demand remained healthy as residential fibre-to-the-home net subscriber additions increased 14.5% YoY to nearly 55,000. Similarly, its Crave subscriptions climbed 23% to around 5.1 million.

BCE is putting more money into Bell AI Fabric data centres, fibre expansion, and artificial intelligence (AI)-powered enterprise solutions. Those investments pushed its capital expenditures higher and contributed to a 9.5% YoY decline in free cash flow to about $1 billion.

Nonetheless, BCE maintained its 2026 guidance and kept its quarterly dividend at $0.44 per share. Taken together, the company’s improving operating trends, fibre growth, and steady dividend make BCE an attractive telecom stock for investors seeking income without taking on as much turnaround risk.

Telus has more rebuilding ahead

Telus still has long-term potential, but its latest results suggest investors may need more patience before the stock becomes the stronger choice. In the second quarter, Telus reported $4.9 billion in operating revenue, down about 2% YoY, while its operating revenue and other income fell 3%. More importantly, its adjusted earnings per share dropped 27% to $0.16.

In addition, Telus recently lowered its outlook for 2026 and now expects consolidated service revenue growth to range from flat to down 2%, while adjusted EBITDA is expected to decline between 2% and 4%.

The company also reset its quarterly dividend by 55% to $0.19 per share. That move is expected to generate about $2.7 billion in cumulative cash savings through 2028, with the money directed toward reducing debt.

While the dividend cut is painful for income investors, it should give Telus more room to repair its balance sheet. The company is targeting net debt to adjusted EBITDA of about 3 times or lower by the end of 2028.

Telus vs BCE: Which stock is a better buy this August?

Considering all these factors, Telus could become a more compelling choice for patient investors if its deleveraging plan gains traction and operating performance improves. Right now, though, Telus stock carries more execution risk than BCE, making BCE stock the stronger buy for investors who want income today without giving up potential upside.

The post I Compared Telus and BCE: Here’s the Better Buy This August appeared first on The Motley Fool Canada.

More reading

• Enbridge vs. Telus: The Better Dividend Stock to Own Through 2026
• I Looked Past the 6.2% Yield: Here’s What Else This TSX Stock Offers
• Why I’m Still Watching This TSX Stock After Its Big 15% Drop
• I’m Trying to Turn $20,000 Into $270 a Quarter in My TFSA
• 3 Ridiculously Cheap Canadian Dividend Stocks to Buy Now and Hold for Years

Fool contributor Jitendra Parashar has positions in BCE. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.

Market uncertainty and the artificial intelligence (AI) revolution taught us that some legacy dividend stocks can also pause dividend growth. The only constant is change, and adapting to this change can revive growth. In the last two years, several renewable energy stocks and two telecom giants slashed dividends, while oil and gas stocks saw a dividend recovery.

Three Canadian stocks that keep raising dividends

In each of these scenarios, some Canadian stocks kept raising their dividends without stressing their cash flows. Do they still have the potential to grow dividends in the future? Let’s see.

Canadian Natural Resources

Canada is an energy export economy. Thus, it comes as no surprise that Canadian Natural Resources (TSX:CNQ), which owns the country’s largest private oil sands reserves, is among the dividend knights. It is among the biggest beneficiaries of rising global energy prices.

The company reported record quarterly production output and revenue in the second quarter of 2026. It used $6.9 billion in funds from operations to reduce debt by $1.6 billion, $2.4 billion on capital expenditure, and another $2.4 billion on dividends and share buybacks.

Canadian Natural Resources uses technology upgrades and economies of scale to reduce production costs. During the energy upcycle, it acquired several reserves and used revenue from increased output to accelerate debt repayment from $15.9 billion in December 2025 to $14.5 billion in June 2026. It aims to reduce it to the targeted $13 billion. Once it achieves this target, the company will use 100% of free cash flow on direct shareholder returns.

Canadian Natural Resources calculates free cash flow after deducting dividends and capex, which means the entire FCF is used for share buybacks. By incorporating dividends into the breakeven price, Canadian Natural Resources protects dividends from oil price fluctuations. Moreover, it has a higher mix of high-margin products, Synthetic Crude and Natural Gas Liquids, which helps it stay profitable even in a cyclical downturn. This business model has helped it grow dividends for 26 consecutive years, even during a supply glut.

Enbridge

Enbridge (TSX:ENB) is another stock that has been raising its dividends for 31 years in a row. However, its dividend growth rate has slowed from 10% to 3% since the pandemic. Behind this slow growth is a change in Enbridge’s strategy from expanding oil pipelines to natural gas pipelines. Enbridge’s pipelines are a lifeline of Canadian oil exports. Now that the North American liquefied natural gas (LNG) export opportunity has arisen, Enbridge is pursuing that opportunity. This has shifted cash flow towards capital expenditure and acquisitions.

The next two years are crucial for the company as a significant number of LNG projects under development are scheduled to come online by 2028. A project under development means more working capital and higher debt levels. Once these projects start earning cash flow, working capital and debt reduce, leaving more cash for dividends.

Enbridge expects to grow its dividends by 5% from 2027 onwards. This growth rate could increase in the long term as debt recedes. Its projects have a long lifecycle, which means once these projects are fully paid off, project cash flow only has to cover maintenance, dividends, and future capital projects.

Manulife Financial stock

Manulife Financial (TSX:MFC) is a stock to own for the 10% average annual dividend growth rate it has maintained for the last 13 years. It doesn’t have a strong history like the above energy stocks because Manulife, like all financial companies, suffered a blow from the 2008 Global Financial Crisis. However, it kept the annual dividend unchanged from 2010 to 2013 before growing it in 2014.

Manulife is funding its dividend growth from increasing core earnings. It is expanding its operations in Asia, growing new business organically and through acquisitions. Some of the new business premiums will trickle down to core earnings if the risk term passes without claim incidents. Even from this core earnings, Manulife maintains a payout ratio of 35–45%, giving it ample flexibility to sustain current dividends and grow them if core earnings grow.

However, Manulife’s dividend growth rate could slow or even pause if the new business growth stagnates. It can grow dividends until then.

The post These 3 Canadian Stocks Just Keep Raising Their Dividends appeared first on The Motley Fool Canada.

More reading

• Enbridge vs. Telus: The Better Dividend Stock to Own Through 2026
• The Best Canadian Dividend Stocks if You Want Passive Income
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• 3 TSX Dividend Stocks for New RRSP Investors
• Here Are 2 Dividend Stocks I’m Not Selling for 5 Years

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Canadian Natural Resources and Enbridge. The Motley Fool has a disclosure policy.

A 14% dip in August has shocked many investors and relieved many. This TSX stock is Telus Corporation (TSX:T). The fall came as the telco reported a net loss of $1.8 billion due to a $2.1 billion goodwill impairment of TELUS Digital’s cash-generating unit. Net loss was the least of investors’ concerns as it was a one-time event. What relieved most investors was Telus announcing dividend cuts and prioritizing debt repayment.

T stock has a $21 billion market cap and over $30 billion long-term debt. Such high debt has reduced Telus’s capacity to fund higher capital expenditure and dividends. Telus is still a good business with strong fixed assets that generate sufficient cash flow. However, the 2022–23 interest rate hikes have slowed its growth pace. It is now paying $1.3 billion in annual interest, which equates to 27% of its operating cash flow. Remember, it takes a year or two for interest rates to reflect in income statements.

Just as one needs to reduce load for a car to run efficiently, Telus needs to reduce its debt to bring back efficiency and accelerate growth.

Why I’m still watching this TSX stock

Telus has got a new CEO, Victor Dodig. His early interaction in the second-quarter earnings call shows debt repayment is the priority. Whether or not Dodig can turn around Telus has me curious.

Back in 2021, Bombardier caught my attention when it decided to sell its train-making business to Alstom. Offloading loss-making businesses, streamlining operations, and focusing on segments that it can handle and grow comfortably was the strategy of then-new CEO Eric Martel, who took the helm in April 2020. Bombardier’s debt situation was way worse than Telus’. The business jet maker was on the verge of bankruptcy. Telus is only seeing slow growth amidst price competition and transition to artificial intelligence (AI).

Telus’s new CEO does not seem to shy away from making difficult decisions. He slashed dividends by 55% and postponed the end of the 2% dividend reinvestment plan (DRIP) discount to October 1, 2026, from the end of 2028. This will bring $2.7 billion in cash savings over the next three years, which he plans to use in debt repayment. Hoping the management does not have a change of mind midway and uses the cash savings elsewhere, Telus could see a turnaround.

How much debt reduction will make a difference in Telus’s balance sheet?

Telus has a 4.8% weighted average interest rate on long-term debt, which means for every $1 billion in debt reduction, it can save on average $47.5 million in interest expense. If Telus wants to achieve the 3 times net debt to adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) target by 2028, it has to reduce debt by at least $3.2 billion.

Calculation: In 2025, Telus’s adjusted EBITDA was $7.4 billion, and it guided a 2–4% dip in 2026. Hence, I assumed a 4% dip in 2026 followed by a 2% growth in 2027 and 2028. Net debt has to fall to $22 billion from the current $25.2 billion to achieve a 3 times leverage ratio.

A $3.1 billion debt reduction will bring annual interest savings of $147.3 million, leaving more cash for capital expenditure and dividends.

How Telus plans to reduce debt this time

Victor Dodig is considering selling Telus Health and Agriculture. However, his words were vague. “Our goal is to continue to nurture the value in those businesses and focus on those that we believe should be monetized because they’re better off in the hands of another owner and do that in a thoughtful manner, thoughtful meaning taking our time — we are engaged”, said Dodig at the second-quarter 2026 earnings call.

His other priorities are increasing revenue from Telus’ wireless business and allocating capital towards customer base management. He has not ruled out AI investments and will complete sovereign AI data centres in Rimouski and Kenwood.

Investor takeaway

If you have patient capital to wait for a turnaround, Telus might be a good investment as it will see more dips in the short term before rallying significantly.

The post Why I’m Still Watching This TSX Stock After Its 14% Drop appeared first on The Motley Fool Canada.

More reading

• Enbridge vs. Telus: The Better Dividend Stock to Own Through 2026
• Why I’m Still Watching This TSX Stock After Its Big 15% Drop
• 3 Ridiculously Cheap Canadian Dividend Stocks to Buy Now and Hold for Years
• Here’s a TFSA Stock Paying 5.6%, and the Price Is Right This Month
• Is Telus a Good Stock to Buy After Finally Cutting its Dividend?

Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Alstom and TELUS. The Motley Fool has a disclosure policy.

While investing in stocks comes with risks, there are some low-risk dividend stocks that you can trust to pay you in every market. The key is to find a low-risk business model and a company that has an economic moat. The next thing to look for is a robust capital allocation and risk management strategy. Filtering stocks on these parameters, here are five dividend stocks from different sectors for diversified cash inflow.

Two dividend stocks from the energy sector

Most dividend stocks grow when the economy is growing. However, these energy stocks help you hedge against inflation. The primary cause of inflation is mostly rising food and energy prices, and energy stocks earn windfall gains when energy prices rise, which they pass on as special dividends.

Enbridge

Dominating North America’s energy landscape is pipeline stock Enbridge (TSX:ENB). Its economic moat is the oil pipeline infrastructure, which is the lifeline for Canada’s oil exports to the United States. It is now building a natural gas pipeline network, but this time not just to export to America but to other countries.

Enbridge is working on its strength of timely completion of pipeline projects within budget. It has allocated $40 billion in capital in new projects, the majority of which are expected to come online by 2028. These projects have pushed its debt above $105 billion, but it is also earning over $12 billion in operating cash flow, sufficient to service debt, invest in the business, and pay dividends.

The energy infrastructure stock has a 5.4% dividend yield, which could increase to 5.7% if the company increases its 2027 dividend per share by 5% to $4.07 from $3.88 in 2026. Although the stock is trading near its 52-week high, its 30-year dividend growth trajectory makes it a must-have if assured payouts are what you seek.

Canadian Natural Resources

Another assurance of dividend payout comes from Canadian Natural Resources (TSX:CNQ), which has embedded the dividend amount in its breakeven price of mid-$40/barrel. Owning Canada’s largest private oil sands reserves, Canadian Natural Resources has a 25-year dividend growth history.

The management has financial discipline to keep net debt below $13 billion. If the debt is higher than the target range, it allocates more free cash flow (FCF) to debt repayment. It is currently on an accelerated paydown of debt from $16.6 billion in December 2025 to $14.5 billion in June 2026.

Once the $13 billion target is achieved, it will allocate 100% of FCF to dividend payments and share buybacks. The stock has a yield of 3.9% but can grow dividends in the high-single-digit to double-digit range in the years to come.

Two dividend stocks from the real estate sector

REITs are some of the best dividend payers as their Trust structure requires them to distribute maximum rental income to unitholders. This makes SmartCentres REIT (TSX:SRU.UN) an ideal REIT because of its long-term lease with Walmart. Of its 201 properties, most of them retail, 24 are under development. Considering that 98.1% of its existing properties are occupied and fetch it regular rent, the new developments could increase its rental income.

The REIT has one of the longest dividend-paying tenures of 22 years without a dividend cut. Although its payout ratio hovers above 85% and leverage is high, most of the debt is paid off when it sells residential units. The ongoing developments will keep working capital high, but they will start paying for themselves as projects come online. Now is a good time to buy the stock and lock in a 6.4% yield.

While SmartCentres has too many projects under development, CT REIT (CRT.UN) has a more efficient balance sheet and a 72.5% payout ratio. It has over 99% occupancy, and its developments, intensifications, and acquisitions are for Canadian Tire. This ensures every new property adds rental income. The REIT can get you a 5.3% yield.

One dividend stock from banking

Royal Bank of Canada is a must-add if you seek safe dividend payouts. During a low-interest-rate environment, wealth management services generate better income, whereas the mortgage segment does so in a high-interest-rate environment. With over 100 years serving the banking business, it has built strong risk management and financial discipline, which makes its dividends safer.

The post 5 Dividend Stocks I’d Trust to Keep Paying Me, No Matter What  appeared first on The Motley Fool Canada.

More reading

• Enbridge vs. Telus: The Better Dividend Stock to Own Through 2026
• The Best Canadian Dividend Stocks if You Want Passive Income
• This 5.5% Dividend Stock Is Perfect if You Want Passive Income
• 3 TSX Dividend Stocks for New RRSP Investors
• Here Are 2 Dividend Stocks I’m Not Selling for 5 Years

The Motley Fool recommends Canadian Natural Resources, Enbridge, SmartCentres Real Estate Investment Trust, and Walmart. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned.

In an attempt to build a worry-free passive income portfolio for retirement, the focal point isn’t supposed to be just the yield. I’d buy businesses with cash flows so predictable that I could comfortably turn off the monitor for the next five years, and still confidently expect compounding to continue as regular dividends and income distributions pour in non-stop.

In the Canadian real estate investment trust (REIT) asset class, selecting dividend stocks to hold for passive income without worry for five years is much easier. You just have to check out two key metrics first: portfolio occupancy rates and the weighted average remaining lease term (WALT).

High occupancy proves that tenants want the space; a WALT exceeding five years almost guarantees that contractual rent will keep rolling in every month, regardless of short-term economic hiccups.

As the second-quarter earnings season continues to unfold, two Canadian REITs standout: Granite Real Estate Investment Trust (TSX:GRT.UN) and Choice Properties Real Estate Investment Trust (TSX:CHP.UN). They check both boxes with flying colours – making them ideal buy-and-hold candidates for the next five years and beyond.

Granite REIT

Granite REIT qualifies as a long-term buy-and-hold dividend stock that pays monthly distributions and maintains a fortress balance sheet. It’s one of the largest industrial property owners, with an expansive portfolio of 145 properties comprising 61.5 million square feet of gross leasable area (GLA) worth more than $9.5 billion.

The industrial REIT’s prime industrial, logistics, and warehouse properties located across Canada, the United States and Europe enjoy very high occupancy rates. Committed occupancy at 98.1% going into the third quarter of 2026 could make several REIT portfolio managers envious. With a weighted average remaining lease term of 5.1 years, Granite REIT’s portfolio should comfortably earn steady monthly rentals for the next half decade with ease.

Most noteworthy, new tenants are willing to pay higher rental rates. The trust averaged a 7% rental spread on new leases and renewals during the past quarter. Impressively, growing rental income resulted in a 9.7% year-over-year increase in portfolio net operating income last quarter.

Granite REIT has raised its distributions for 15 consecutive years now. With a low payout rate of adjusted funds from operations (AFFO) of 70%, the monthly distribution appears safe, well covered by recurring distributable cash flow, and leaves room for further annual raises.

I would be comfortable earning an entry-level 3.9% annual yield on this industrial REIT, with room for potential annual dividend raises over the next five years.

Choice Properties REIT

It boasts being Canada’s largest retail REIT with a growing portfolio of 699 properties, including industrial and mixed-use residential space, and Choice Properties REIT’s necessity-based retail portfolio is heavily anchored by its steady, strong, and reliable strategic partner, Loblaw Companies, giving the real estate behemoth strong rental earnings visibility beyond the next five years.

Loblaw, a major tenant comprising 57% of portfolio leasable space, has a master lease agreement with the REIT that extends to 2033, and allows for five-year lease renewals. The retailer recently renewed some leases averaging five years in maturity. Overall, the REIT’s weighted average lease term should be around 6 years.

Why should Choice Properties REIT belong in a long-term dividend portfolio for the next five years? Well, Choice Properties enjoys high occupancy rates averaging 97.7%, it recently reported double-digit rental spreads of 19% on renewals and releases, grew its funds from operations (FFO) over the past six months and paid out about 73% of FFO in distributions during the past quarter.

The REIT’s well-covered monthly distribution yields 5.1%.

The post Here Are 2 Dividend Stocks I’d Hold Without Worry for 5 Years appeared first on The Motley Fool Canada.

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Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Telus Corporation (TSX:T) has joined BCE (TSX:BCE) in the dividend game, as the cash flow that funded these dividends has come under strain. A few advantages Telus had over BCE in dividends are now gone, and both are on par. Both now have a 5.6% annual dividend yield, have ended the discount they offered on the dividend reinvestment plan (DRIP), and reduced the long-term payout ratio.

Even after slashing dividends, telecom stocks have a long way to go in their recovery. Both are targeting reducing their net debt to 3 times its adjusted Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). BCE is targeting to achieve this ratio by 2030 and Telus by 2028. Until then, I do not see any signs of dividend growth.

Why this dividend stock beats Telus and BCE for me

If a 5.6% dividend yield is the hook to invest, I would rather invest in Enbridge (TSX:ENB) for three reasons.

• Dividend growth and payout ratio
• Leverage ratio
• Profit and cash flow margins

With a 5.4% yield, Enbridge has a low-risk business model as there is no competition and it continues to enjoy the same toll rates. BCE and Telus also had similar moats until regulatory changes opened the fibre infrastructure to competitors. Enbridge won’t see such regulations, as oil and gas transmission is midstream. It is not involved in the retail distribution of oil and gas, except for its utilities business where rates are regulated.

Enbridge expects to grow its dividend by 5% from 2027 onwards. Although it has paused its DRIP, the quarterly dividend can be used to buy other stocks tax-free in a Tax-Free Savings Account (TFSA).

Safer dividend growth

You can be assured there won’t be a dividend cut, as Enbridge has maintained its long-term dividend payout ratio of 60–70% of distributable cash flow (DCF). Enbridge builds pipelines, and as soon as they become operational, it starts earning toll money, which is used to pay loan interest expense and operating expenses. What is left is DCF, a portion of which goes to shareholders as dividends.

With several projects scheduled to come online between 2027 and 2028, depreciation will surge and so will DCF.

Leverage ratio

Given Enbridge’s business model, it has a higher debt-to-EBITDA ratio of 4.7 times, which is within its target range of 4.5–5 times. BCE and Telus have a lower target ratio of 3 times and 2.7 times their EBITDA, respectively, because their infrastructure needs frequent upgrades. Meanwhile, Enbridge’s infrastructure has a longer lifecycle than BCE and Telus’s fibre network. This helps Enbridge make money even from legacy pipelines that have already been paid off.

Profit and cash flow margins

Looking at the free cash flow of each of the three companies, Enbridge’s distributable cash flow is 19% of its revenue. For BCE and Telus, FCF is less than 10% of their revenue.

All the above factors make Enbridge a better stock at a 5.4% yield.

The post Why This Dividend Stock Is My Pick Over Telus and BCE appeared first on The Motley Fool Canada.

More reading

• Enbridge vs. Telus: The Better Dividend Stock to Own Through 2026
• This 5.5% Dividend Stock Is Perfect if You Want Passive Income
• 3 TSX Dividend Stocks for New RRSP Investors
• I Looked Past the 6.2% Yield: Here’s What Else This TSX Stock Offers
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Fool contributor Puja Tayal has no position in any of the stocks mentioned. The Motley Fool recommends Enbridge and TELUS. The Motley Fool has a disclosure policy.

Canadian telecom investors received a painful blow following TELUS’s (TSX:T) second-quarter (Q2 2026) earnings report on July 31. The stock has slid by 11.6% since the announcement, bringing its year-to-date decline to 21.1%. The main culprit? A 55.2% dividend cut executed by newly installed CEO Victor Dodig and CFO Gopi Chande, who assumed leadership on July 1, 2026. The payout reduction stings passive income investors while resetting the yield from double digits to a sustainable 5.6% annually.

While leaning towards buying TELUS stock for a multi-year investment horizon, I speculated on a 50% dividend cut earlier in July, and expected a dividend reset to about 5.7% to bring the yield within competitor ranges while paving way for faster deleveraging and new growth investments. A 55.2% slash was a little bit deeper, and the 11% drop in T stock following the dividend cut could be overdone. Is the dramatic sell-off a market overreaction, a warning sign to stay away, or rare buying opportunity? Let’s explore.

The strategy behind TELUS’s financial reset

Dividend cuts are rarely welcomed, but context is key. TELUS’s 55.2% payout cut may generate roughly $2.7 billion in cumulative cash savings through 2028. Management plans to direct this cash toward deleveraging, aiming to lower TELUS’s key leverage ratio, its Net-Debt to Adjusted EBITDA ratio, from 3.5 at quarter-end to a target of 3 by the end of 2028.

Operational results for the second quarter added to investor anxiety. Operating revenue fell 3% during the quarter, and management updated its full-year 2026 guidance to project flat-to-negative 2% service revenue growth alongside a 2% to 4% decline in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).

Compounding the market’s disappointment, TELUS took a $2.1 billion goodwill impairment charge on its key growth segment, TELUS Digital, to reflect lower expected cash flows from prior acquisitions.

However, core operations proved resilient. Mobile network revenue rose 1% despite Average Revenue Per User (ARPU) dropping 0.4% to $56.36. Cash flow performance also remained positive, with cash flow from operations increasing 15% to $1.3 billion, while quarterly free cash flow rose 2% to $545 million.

A resilient cash flow profile retains hope for long-term oriented investors, as it provides the dry powder for management to pounce on revenue-enhancing opportunities that may usher in a new positive growth era as the artificial intelligence (AI) promise continues to hold.

New value drivers: Sovereign AI and real estate

While core telecommunications business lines remain the central drivers for revenue and cash flow performance, TELUS is executing strategic pivots in real estate and sovereign AI computing that may build predictable, long-term value.

TELUS is converting empty copper switching centers into residential real estate. Beginning with a 195-unit project in Nanaimo, TELUS aims to develop over 4,000 purpose-built units by 2032. Because TELUS already owns the land, land acquisition costs are zero. This portfolio could generate $100 million to $120 million in recurring, high-margin rental revenue annually. Furthermore, every unit comes pre-wired with PureFibre and TELUS SmartHome Automation, securing a small but captive, low-churn subscriber base.

Recently,TELUS joined an AI consortium and is investing in sovereign AI data centres to meet the growing need for Canadian AI infrastructure.

A slashed dividend makes capital investments in sovereign AI data centres easier to execute without straining the balance sheet.

Is TELUS stock a Buy, Sell, or Hold?

Given an ongoing strategic reset, a cost saving operational re-organization, and a price reset that offers a 5.6% yield from safer payouts, TELUS stock is a much cheaper and better Buy than it was a month ago.

TELUS stock currently trades at a forward P/E of 18.6 following a heavy beating, cheaper compared to a five-year average multiple of 22. While 2026 profitability will be lower than 2025, the dividend reset and non-core cash generation provide a solid foundation for a multi-year strategic turnaround.

As CEO Victor Dodig recently emphasized, these strategic changes to cash deployment are designed to compound into lasting value for shareholders. With significant downside risk already priced into the heavily discounted valuation, the potential upside over a five-year investment horizon, supported by a safer yield, potentially outweighs the short-term pain.

The post Telus Stock: Buy, Sell, or Hold After Q2 Report? appeared first on The Motley Fool Canada.

More reading

• Enbridge vs. Telus: The Better Dividend Stock to Own Through 2026
• Why I’m Still Watching This TSX Stock After Its Big 15% Drop
• 3 Ridiculously Cheap Canadian Dividend Stocks to Buy Now and Hold for Years
• Here’s a TFSA Stock Paying 5.6%, and the Price Is Right This Month
• Is Telus a Good Stock to Buy After Finally Cutting its Dividend?

Fool contributor Brian Paradza has no position in any of the stocks mentioned. The Motley Fool recommends TELUS. The Motley Fool has a disclosure policy.