In this article, we will take a look at some of the best dividend Canadian stocks.
Dividend-paying stocks continue to attract investor interest both in the US and globally. Among them, Canadian companies stand out for their strong cash flow, consistent dividend payments, and healthy balance sheets. Many Canadian firms have also built a solid track record of increasing their dividends over time. According to data from CIBC Asset Management and Bloomberg (as of June 2024), banks and insurance companies in Canada have posted five-year dividend growth rates above 7%, while telecom companies have seen growth rates nearing 12%.
The same report also pointed out that the current yield gap between Canadian and US stocks is the widest it has been in more than 15 years. This creates a compelling opportunity for dividend-focused Canadian investors. The yield advantage is backed by expectations of a recovery in Canadian corporate earnings starting in 2025, along with a broader upswing in the Energy and Materials sectors. High-quality dividend stocks in these industries have strengthened their financial positions in recent years by reducing debt and boosting free cash flow.
Given this, we will take a look at some of the best Canadian dividend stocks to invest in.
Our Methodology
For this article, we scoured the list of S&P/TSX Canadian Dividend Aristocrats Index, which includes Canadian companies with at least five years of dividend growth track records. From that list, we selected stocks that are traded on American stock exchanges and sorted them by the number of hedge fund holders in our database that also had positions in those companies at the end of Q1 2025. This means that these Canadian companies are the most famous among hedge fund investors.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
11. Fortis Inc. (NYSE:FTS)
Number of Hedge Fund Holders: 12
Fortis Inc. (NYSE:FTS) is among the best dividend Canadian stocks to invest in. The company manages a varied mix of regulated utility businesses that generate steady cash flow no matter the state of the economy. In addition, the company primarily focuses on energy delivery, with 93% of its assets invested in transmission and distribution. These segments carry low risk and consistently produce reliable earnings and cash flow.
In its recent quarterly earnings, Fortis Inc. (NYSE:FTS) expressed its continued commitment to providing customers with affordable and reliable energy, despite ongoing macroeconomic volatility. It also reaffirmed its goal of delivering annual dividend growth in the range of 4% to 6% through 2029 for its shareholders.
Fortis Inc. (NYSE:FTS) currently offers a quarterly dividend of C$0.615 per share for a dividend yield of 3.80%, as of July 15. The company has been rewarding shareholders with growing dividends for the past 51 years. The company has outlined a five-year capital plan worth $26.0 billion, which is projected to raise its midyear rate base from $39.0 billion in 2024 to $53.0 billion by 2029. This growth reflects a compound annual rate of 6.5% over the five-year period.
10. TELUS Corporation (NYSE:TU)
Number of Hedge Fund Holders: 16
TELUS Corporation (NYSE:TU) is one of the three major telecommunications companies in Canada, with a customer base of over 9 million mobile users. This represents about one-third of the country’s market. In addition to wireless services, the company also provides internet, TV, and landline connections. It has recently begun upgrading from its older copper network to fiber optic cables in an effort to deliver better value and improved service quality to customers.
In the first quarter of 2025, TELUS Corporation (NYSE:TU) delivered solid performance, reporting a 22% increase in consolidated free cash flow compared to the same period last year, along with a 13% rise in operating cash flow. Supported by a strong outlook for adjusted EBITDA growth, lower capital expenditures, and continued free cash flow expansion, the company plans to extend its dividend growth program, aiming for annual increases between 3% and 8% from 2026 through 2028.
TELUS Corporation (NYSE:TU) is one of the best dividend Canadian stocks, as the company has raised its payouts every year since 2004. Since then, it has returned approximately $28 billion to shareholders through dividends. The company currently offers a quarterly dividend of C$0.4163 per share and has a dividend yield of 7.44%, as of July 15.
9. Imperial Oil Limited (NYSE:IMO)
Number of Hedge Fund Holders: 22
Imperial Oil Limited (NYSE:IMO) functions as a fully integrated energy company, with operations spanning upstream production, refining, and retail. As the largest petroleum refiner in Canada, the company also benefits from the backing of Exxon Mobil, which holds nearly a 70% ownership stake. This strong connection provides access to significant financial resources and international expertise. Its integrated structure allows the company to maintain more stable earnings despite fluctuations in oil prices.
Imperial Oil Limited (NYSE:IMO) reported strong earnings in the first quarter of 2025. The company noted that its Upstream segment continued to gain from improved transportation capacity and reduced heavy oil differentials. Meanwhile, profitability in the Downstream segment remained strong, supported by the inherent structural strengths of the Canadian market. Its cash position also remained stable. The company generated C$1.52 billion in operating cash flow during the quarter. In addition, it returned C$307 million to shareholders through dividends, which showed its commitment to returning value.
Imperial Oil Limited (NYSE:IMO) currently offers a quarterly dividend of C$0.72 per share, having raised it by 20% in January this year. This was the company’s 31st consecutive year of dividend growth, which makes it one of the best Canadian dividend stocks. The stock supports a dividend yield of 2.57%, as of July 15.
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