- The Best Online Brokers in Canada for Beginners (2025): A Simple Guide to Start Investing
- RESP Explained: How to Save for Your Child’s Education in Canada
- Unlock Awesome Ways to Start Investing with Just $100 in Canada
- Finance 101: The Ultimate Guide to Managing Your Money
- Emergency Fund 101: How Much Should You Save?
Dividend investing in Canada is powerful because you can combine reliable cash flow with long-term growth—and do it inside TFSA/RRSP for tax advantages. Below are five TSX names with durable moats, disciplined capital allocation, and track records of paying (and often growing) dividends. This is educational, not personal advice; always check the latest filings and your own risk tolerance.
How I Picked Dividend Stocks (Quick Criteria)
- Resilient cash generation (regulated or contracted, diversified revenue)
- Reasonable payout discipline (room to reinvest and grow)
- Balance sheet quality (investment-grade where applicable)
- History of dividend stability/growth
- Clear 2025 catalysts (rate path, new projects, cost controls, or recovery)
At-a-Glance Table
| Ticker | Company | Sector | Dividend Style | Why Now (2025) | Key Risks |
|---|---|---|---|---|---|
| FTS | Fortis | Regulated Utilities | Dividend-growth | Long runway of regulated CAPEX; multiyear dividend-growth guidance historically intact | Rate decisions, project delays |
| ENB | Enbridge | Energy Infrastructure | High yield + moderate growth | Long-term, contracted pipes & gas utilities; inflation-linked features on some assets | Leverage, energy policy, project execution |
| T | TELUS | Telecom | Dividend-growth (moderate) | 5G/fibre penetration, cost takeout, optionality in TELUS International & Health | Competition, capital intensity, wireless pricing |
| POW | Power Corporation | Financial Holding Co. | Balanced yield + NAV growth | Exposure to Great-West/IGM + alternative assets; disciplined buybacks | Market drawdowns, holding-company discount |
| EIF | Exchange Income | Diversified Industrials | Monthly dividend, growth via acquisitions | Niche aviation & essential services with long contracts; steady deal pipeline | Integration risk, cyclicality in certain niches |
Honourable mentions: MFC (Manulife), GWO (Great-West Lifeco), BNS (Bank of Nova Scotia) for higher yield, CU (Canadian Utilities) for ultra-stable hikes, SRU.UN (SmartCentres REIT) for retail-anchored income.
1) Fortis (FTS) — Regulated & Reliable
Why it’s on the list: Fortis operates regulated electric and gas utilities across North America. Regulated assets mean predictable cash flows and visibility on rate-base growth. Management has maintained dividend-growth guidance for decades, making FTS a cornerstone for Canadian dividend-growth portfolios.
What to watch in 2025
- Execution on multi-year CAPEX to expand the regulated rate base
- Interest-rate path (lower or stable rates support utility valuations)
Best account: TFSA/RRSP (compounding those annual increases tax-advantaged)
2) Enbridge (ENB) — Income Engine with Scale
Why it’s on the list: ENB owns critical North American energy infrastructure (liquids & gas pipelines, gas utilities, renewables). Much of its cash flow is long-term and contracted, supporting a higher starting yield with measured growth.
2025 lens
- Integration of recent gas-utility acquisitions
- Asset rotations to manage leverage and fund growth
Key risk: Regulatory pushback and project timing; monitor debt metrics and capital plan.
3) TELUS (T) — Cash Flow from Connectivity
Why it’s on the list: TELUS pairs core wireless/fibre with adjacencies in health, agriculture, and customer-experience (TI). As fibre builds mature and 5G monetization improves, free cash flow should strengthen, supporting ongoing dividend growth.
2025 lens
- Cost-reduction programs and capex normalization
- Performance at TELUS International/Health as incremental catalysts
Key risk: Industry pricing pressure and heavy historical capex.
4) Power Corporation (POW) — A Diversified Dividend Hub
Why it’s on the list: Through stakes in Great-West Lifeco and IGM, plus alternative-asset platforms, POW offers broad financial exposure and typically a solid payout, with opportunistic buybacks reducing the holding-company discount over time.
2025 lens
- Capital returns from subs (dividends/buybacks) flowing to POW
- Any simplification steps that narrow the NAV discount
Key risk: Market drawdowns in wealth/insurance; keep an eye on the look-through leverage.
5) Exchange Income (EIF) — Monthly Payer with Niche Moat
Why it’s on the list: EIF owns essential-service businesses (regional aviation, aerospace/defence, utilities-adjacent services). Contracts and government/industrial customers support steady cash, and management has a long record of disciplined acquisitions—while paying a monthly dividend.
2025 lens
- Post-deal integration and organic growth in aerospace services
- Debt management as rates evolve
Key risk: Acquisition integration and exposure to cyclical end-markets.
Building a Simple 2025 Dividend Core (Example)
- Core stability (40–50%): FTS (+ optionally CU for even steadier growth)
- Income anchor (25–35%): ENB (+ BNS if you want bank yield)
- Growth-tilted cash flow (15–25%): T, EIF
- Diversifier (10–20%): POW (financials)
Rebalance annually; reinvest dividends (“DRIP”) in TFSA/RRSP when possible.
What Could Go Wrong (Risk Brief)
- Rates stay higher for longer: pressures highly levered, capital-intensive sectors (utilities/telecom/pipelines).
- Regulatory/project setbacks: delay cash flows.
- Earnings cyclicality: particularly at EIF’s industrial ends and financials’ market sensitivity.
- Concentration risk: spreading across sectors (utilities/telecom/energy/financial/industrial) helps.
Implementation Tips (for Canadian investors)
- Account placement: Canadian dividends are tax-efficient in taxable accounts, but TFSA (tax-free) and RRSP (tax-deferred) simplify and compound faster.
- Position sizing: start equal-weight, then tilt toward your income vs. growth preference.
- When to buy: stagger entries (monthly/quarterly) to average into volatility; watch earnings and rate decisions.
- What to track: payout ratio trend, debt/EBITDA, capex plans, credit ratings, and multi-year dividend guidance.
FAQ
Are these “forever holds”?
Utilities and pipelines often are—if fundamentals hold. Telecoms/financials/industrials require more active monitoring.
What yield should I expect?
Yields fluctuate with price. Focus on safety + growth runway, not just the headline yield.
ETFs instead?
For one-ticket income, consider broad Canadian dividend ETFs—but single stocks can tailor yield/growth to your goals.