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.
8. The Toronto-Dominion Bank (NYSE:TD)
Number of Hedge Fund Holders: 25
The Toronto-Dominion Bank (NYSE:TD) is among the best Canadian Dividend stocks to invest in. Throughout the Great Recession, while many major US banks were compelled to reduce their dividends, TD Bank managed to keep its payout unchanged. Even when its US division faced a money laundering scandal that led to a hefty regulatory fine and an asset cap, the bank still went ahead with a dividend increase despite the challenges. Remarkably, the bank has consistently paid dividends since 1857.
The Toronto-Dominion Bank (NYSE:TD) reported solid quarterly performance, driven by strong trading and fee income in its markets-focused businesses, along with growth in deposits and loans within its Canadian Personal and Commercial Banking segment. The bank also indicated that its US balance sheet restructuring is progressing as planned, while steady progress is being made on anti-money laundering remediation efforts.
The Toronto-Dominion Bank (NYSE:TD) currently offers a quarterly dividend of C$1.05 per share. The company has been growing its dividends for 10 consecutive years, making it a reliable option for income investors. The stock has a dividend yield of 4.17%, as of July 15.
7. Royal Bank of Canada (NYSE:RY)
Number of Hedge Fund Holders: 30
Royal Bank of Canada (NYSE:RY) is considered a reliable option for investors seeking consistent dividend income. The bank’s broad revenue streams, diverse client base, effective cost control, strong asset quality, and steady earnings growth all contribute to the strength of its stock and dividend performance. Over the last ten years, the bank has increased its earnings at a compound annual rate of 7%, while its dividend has grown at a rate of 8%.
Royal Bank of Canada (NYSE:RY)’s core business remains strong, supported by a growing loan portfolio, a stable deposit base, and continuous gains in operational efficiency. These factors help reinforce the bank’s ability to maintain and raise its dividend. Backed by a solid balance sheet and prudent risk management practices, Royal Bank is well-positioned for long-term growth. Management has set a goal of growing the dividend by roughly 7% annually over the medium term, and with a payout ratio between 40% and 50%, there is still significant room for further dividend increases while keeping its financial position strong.
On May 29, Royal Bank of Canada (NYSE:RY) declared a 4.1% hike in its quarterly dividend to C$1.54 per share. This marked the company’s 15th consecutive year of dividend growth, which makes it one of the best dividend Canadian stocks to invest in. In the most recent quarter, the company returned $2.6 billion to shareholders through dividends and share repurchases. The stock has a dividend yield of 3.4%, as of July 15.
6. Thomson Reuters Corporation (NASDAQ:TRI)
Number of Hedge Fund Holders: 32
Thomson Reuters Corporation (NASDAQ:TRI) is one of the best dividend Canadian stocks. The company has maintained solid momentum in 2025, driven by its strategic emphasis on content-focused technology, which is supporting consistent growth across its main business segments. The company’s push into generative AI is yielding positive results, with GenAI-enabled offerings now accounting for 20% of its annualized contract value. To further strengthen its AI capabilities, Thomson Reuters is allocating $200 million each year, with the investment spread across both operating costs and capital spending.
Thomson Reuters Corporation (NASDAQ:TRI) reported strong earnings in the first quarter of 2025. The company reported revenue of $1.9 billion, which showed a 1% growth from the same period last year. Its operating profit for the quarter came in at $563 million, also up by 1% from the prior-year period. The company’s cash position also came in strong, with an operating cash flow of $445 million and a free cash flow of $277 million, both showing a 4% and 3% growth on a YoY basis, respectively.
Thomson Reuters Corporation (NASDAQ:TRI) currently offers a quarterly dividend of $0.595 per share and has a dividend yield of 1.13%, as of July 15. The company has grown its dividends for 31 years in a row.
5. Manulife Financial Corporation (NYSE:MFC)
Number of Hedge Fund Holders: 32
Manulife Financial Corporation (NYSE:MFC) is one of the best Canadian dividend stocks. Unlike sectors that are typically sensitive to interest rate changes, insurance companies such as Manulife often gain an advantage when rates rise. This is because higher interest rates lead to improved returns on the sizable investment portfolios these firms oversee.
In the first quarter of 2025, Manulife Financial Corporation (NYSE:MFC) reported strong top-line performance, with double-digit growth in new business value across all insurance segments, highlighted by a 43% year-over-year increase in Asia. Its Global Wealth and Asset Management division posted a 24% rise in core earnings, improved its core EBITDA margin by 290 basis points, and achieved positive net flows. In addition, the completion of a second long-term care reinsurance transaction underscored the company’s disciplined execution and ongoing commitment to creating sustainable value for shareholders.
Manulife Financial Corporation (NYSE:MFC) currently offers a quarterly dividend of $0.44 per share, having raised it by 10% in February this year. Through this increase, the company stretched its dividend growth streak to 12 years. The stock has a dividend yield of 4.19%, as of July 15.
4. Enbridge Inc. (NYSE:ENB)
Number of Hedge Fund Holders: 34
Enbridge Inc. (NYSE:ENB)’s main operations revolve around its extensive oil and natural gas pipeline system. The company earns steady cash flow by charging users fees to access its infrastructure, with revenues remaining stable regardless of fluctuations in commodity prices.
In addition to its core pipeline business, Enbridge Inc. (NYSE:ENB) has expanded into regulated natural gas utilities and renewable energy through solar and wind projects. Throughout this growth, the company has maintained an investment-grade credit rating and has kept its dividend payouts within its target range of 60% to 70% of distributable cash flow.
Enbridge Inc. (NYSE:ENB) generated strong cash in the first quarter of 2025. The company’s operating cash flow came in at C$3.1 billion, and its distributable free cash flow was C$3.8 billion for the quarter. Currently, it offers a quarterly dividend of C$0.9425 per share and has a dividend yield of 5.97%, as of July 15. ENB is one of the best dividend Canadian stocks, as the company has raised its payouts for 30 years in a row.
3. Canadian National Railway Company (NYSE:CNI)
Number of Hedge Fund Holders: 45
Canadian National Railway Company (NYSE:CNI) is among the best dividend Canadian stocks to invest in. It is considered a reliable blue-chip option for income-focused investors looking for stability. Its extensive rail network plays a key role in Canada’s supply chain, which strengthens its operations by supporting steady demand and contributing to consistent revenue and earnings growth. This dependable performance enables the company to continue growing its dividend over time.
In the first quarter of 2025, Canadian National Railway Company (NYSE:CNI) credited its strong quarterly performance to strict cost management and disciplined execution of its strategic plan, which helped offset the effects of challenging winter conditions. Looking ahead, management emphasized its commitment to staying agile and maintaining close collaboration with customers amid ongoing macroeconomic and geopolitical uncertainty.
Canadian National Railway Company (NYSE:CNI) reported revenue of $4.4 billion in Q1 2025, up from $4.2 billion in the same period last year. The company’s cash position also remained stable as the company reported a free cash flow of $626 million, up from $576 million in the prior-year period.
Canadian National Railway Company (NYSE:CNI) offers a quarterly dividend of C$0.8875 per share, which it grew by 5% in January this year. This was the company’s 29th consecutive year of dividend growth. The stock’s dividend yield on July 15 came in at 2.52%.
2. Agnico Eagle Mines Limited (NYSE:AEM)
Number of Hedge Fund Holders: 50
Agnico Eagle Mines Limited (NYSE:AEM) is one of the best Canadian dividend stocks. The company is a leading gold producer with mining operations in Canada, Finland, Australia, and Mexico. It is recognized for its stable operations, long-life mining assets, and solid financial position. Although gold prices can fluctuate, Agnico has a track record of maintaining resilient performance over the long term.
Agnico Eagle Mines Limited (NYSE:AEM) has shown remarkable growth in its gold production over the years. Back in 2008, the company operated only a single mine, LaRonde. Since then, it has significantly expanded its presence to 11 mines spread across four countries. This growth has been fueled by the development of new mining projects and well-planned acquisitions, particularly in regions considered to be lower risk.
Agnico Eagle Mines Limited (NYSE:AEM) reported a solid cash position in the first quarter of 2025. The company’s operating cash flow came in at $1.2 billion, and its free cash flow amounted to $594 million. Currently, it offers a quarterly dividend of $0.40 per share for a dividend yield of 1.34%, as of July 15. The company has paid uninterrupted dividends to shareholders since 1983.
1. Canadian Natural Resources Limited (NYSE:CNQ)
Number of Hedge Fund Holders: 52
Canadian Natural Resources Limited (NYSE:CNQ) is an oil and gas producer that has built a reputation for dependable dividend payments and steady increases over time. Its wide-ranging portfolio of long-lasting, low-decline assets requires minimal upkeep, allowing the company to generate strong free cash flow even when commodity prices are unstable. In addition, its low break-even point for maintaining operations and supporting dividends provides a buffer during market downturns and supports growth when conditions improve.
Canadian Natural Resources Limited (NYSE:CNQ) is steadily strengthening its financial position, with efforts aimed at reducing net debt. In the first quarter of 2025, the company lowered its net debt by $1.4 billion. As of March 31, it had around $5.1 billion in available liquidity, putting it in a strong position to take advantage of strategic acquisition opportunities or take further steps to boost shareholder returns. In the most recent quarter, the company generated $4.3 billion in operating cash flow.
Canadian Natural Resources Limited (NYSE:CNQ) offers a quarterly dividend of C$0.5875 per share. The company last raised its payout in March this year, which was its 25th consecutive annual dividend hike. In addition, during this period, the company has raised its payout at a CAGR of 21%. The stock has a dividend yield of 5.53%, as of July 15.
While we acknowledge the potential of CNQ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than CNQ and that has 100x upside potential, check out our report about this cheapest AI stock.
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