In the world of investing, few strategies are as beloved by Canadians as dividend investing. There is something undeniably satisfying about getting paid just for holding a stock. Here are the top 10 Canadian dividend stocks as picked by Financially Wise Canada.
For Canadian investors, this strategy is even more powerful thanks to the Dividend Tax Credit, which allows you to earn eligible dividends in a non-registered account with a lower tax bill than regular income. When combined with the tax-free power of a TFSA, dividend stocks can become a “money printing” machine for your future.
Whether you are looking to supplement your salary or build a nest egg for retirement, here are the top 10 Canadian dividend stocks to watch in 2026.
To analyze a stock for both dividends and growth (often called “Dividend Growth Investing”), you cannot look at yield alone. You need a framework that evaluates the total return potential (income + capital appreciation) and the safety of that income.
The “Total Return” Filter (The Chowder Rule)
When your goal is a mix of income and growth, you need a metric that combines them. A popular rule of thumb among dividend growth investors is the Chowder Rule. It acts as a quick filter to see if a stock offers enough combined potential.
- The Formula:
Current Dividend Yield + 5-Year Dividend Growth Rate - The Target Score: Look for a score of 12% or higher for most stocks.
- Example: If a stock has a 3% yield and grows its dividend by 10% per year, the score is 13 (3 + 10). This passes.
- Exception: For Utilities, Telecoms, and REITs (which naturally have higher yields but slower growth), a score of 8% is often considered acceptable.
The “Blue Chip” Essentials
These companies are the bedrock of many Canadian portfolios. They have a long history of paying—and increasing—their dividends.
1. Enbridge (ENB.TO)
- Sector: Energy Infrastructure
- Why it’s a pick: Enbridge is a giant in North American energy, moving about 30% of the crude oil produced in the continent. It is a favorite for income-focused investors due to its consistently high yield.
- Dividend Yield: ~5.6% – 6.0%
- Payout: Quarterly
2. Royal Bank of Canada (RY.TO)
- Sector: Banking
- Why it’s a pick: As Canada’s largest bank, RBC is the definition of stability. While its yield is lower than some peers, it offers an excellent balance of capital appreciation and dividend growth. It is a stock you buy and hold forever.
- Dividend Yield: ~3.0% – 3.5%
- Payout: Quarterly
3. Fortis Inc. (FTS.TO)
- Sector: Utilities
- Why it’s a pick: Fortis is almost a “bond-like” equity. With regulated utility assets across Canada, the US, and the Caribbean, their revenue is predictable. They hold one of the longest streaks of consecutive annual dividend increases in Canada.
- Dividend Yield: ~3.6% – 4.0%
- Payout: Quarterly
High Yield Heavyweights
If your primary goal is maximizing immediate cash flow, these stocks often offer higher starting yields. These are often found in the Canadian Dividend stocks aristocrats list.
4. Bank of Nova Scotia (BNS.TO)
- Sector: Banking
- Why it’s a pick: Often referred to as “The International Bank” due to its exposure to Latin America, Scotiabank typically offers one of the highest dividend yields among the “Big Five” banks.
- Dividend Yield: ~5.5% – 6.0%
- Payout: Quarterly
5. BCE Inc. (BCE.TO)
- Sector: Telecommunications
- Why it’s a pick: Bell is a massive cash flow machine. While growth has slowed, their dominance in the telecom sector allows them to pay out a very generous dividend, making them a staple for retirees.
- Dividend Yield: ~7.0% – 8.5%
- Payout: Quarterly
6. TC Energy (TRP.TO)
- Sector: Energy Pipelines
- Why it’s a pick: Similar to Enbridge, TC Energy operates a massive network of natural gas pipelines. They have raised their dividend annually for over two decades.
- Dividend Yield: ~5.5% – 6.0%
- Payout: Quarterly
Growth & Diversification
To round out a portfolio, you need exposure beyond just banks and pipelines. Here’s the final category of the Canadian Dividend stocks list.
7. Telus Corporation (T.TO)
- Sector: Telecommunications & Tech
- Why it’s a pick: Telus differentiates itself by not owning a media arm (TV stations/Sports). Instead, they have diversified into health tech and agriculture tech, offering a unique “growth plus income” profile.
- Dividend Yield: ~5.5% – 6.5%
- Payout: Quarterly
8. Canadian Utilities (CU.TO)
- Sector: Utilities
- Why it’s a pick: This company holds the record for the longest track record of annual dividend increases in Canada. If consistency is your #1 metric, this is your stock.
- Dividend Yield: ~4.5% – 5.0%
- Payout: Quarterly
9. Granite REIT (GRT.UN)
- Sector: Real Estate (Industrial)
- Why it’s a pick: Most people think of malls or offices for REITs, but Granite owns warehouses and logistics properties (think e-commerce storage). It is a stable way to get real estate exposure without the headache of being a landlord.
- Dividend Yield: ~3.5% – 4.0%
- Payout: Monthly
10. Manulife Financial (MFC.TO)
- Sector: Insurance & Wealth Management
- Why it’s a pick: With a strong presence in Asia, Manulife offers exposure to faster-growing global markets while still being a Canadian blue-chip payer.
- Dividend Yield: ~4.5% – 5.0%
- Payout: Quarterly
Final Strategy: The DRIP
To truly unlock the power of these stocks, consider setting up a Dividend Reinvestment Plan (DRIP). This automatically uses your dividend payments to buy more shares of the stock (often without commission). Over 10 or 20 years, this “snowball effect” can turn a modest investment into a massive portfolio.
Disclaimer: Stock market data is dynamic. Yields mentioned are estimated based on recent trends and prices as of late 2025. Always conduct your own research before investing.
