CU
Canadian utilities (TSX:CU) often earns the “rock solid” label because it sells something that Canadians consume all the time. It’s inside the ATCO group and operates regulated electricity and natural gas utilities, plus other energy-related activities. This links a large part of the revenue to approved rates and sustainable infrastructure. CU is not a stock that needs perfect consumer sentiment or a high commodity price. Steady investments, safe operations and reasonable decisions by regulators are needed.
Over the past year, headlines have leaned more toward “steady grind” than “big splash,” which is exactly why dividend investors like it. In October 2025, a quarterly dividend of $0.4577 per share was declared, which at the time was $1.83 annually. In January 2026, it increased that quarterly dividend to $0.4623, extending its streak to 54 consecutive years of dividend increases. That shows how seriously management and the board of directors treat the payout.
Regulation has also remained central. Canadian Utilities operates heavily in Alberta, where the Alberta Utilities Commission sets an allowable return on equity for utilities. The AUC has set the return on equity for 2025 at 9%. Management identifies headwinds due to lower permitted returns and the end of an efficiency mechanism. That is the core risk with a utility company. The company can run smoothly, while the regulator is still crunching the math.
Revenue support
Still, earnings have remained stable enough to support the dividend story. In the third quarter of 2025, Canadian Utilities reported adjusted earnings of $108 million, or $0.40 per share, compared to $102 million, or $0.38 per share, a year earlier. It also reported profits attributable to stock of $166 million, or $0.61 per share, which may vary with one-time items and timing. For an RRSP investor, the cleaner message is simple: the underlying company just kept moving forward.
The next question is what keeps this trend alive. The answer usually comes down to capital investments that expand and modernize the regulated network. In its Q3 2025 update, the company said it invested $402 million in capital expenditures, 95% of which went to regulated utilities. Previous disclosures from 2025 also pointed to system upgrades and growth projects, including Yellowhead in natural gas transmission and CETO in electricity transmission, plus work related to the Atlas Carbon Storage Hub in its energy growth segment.
The valuation, meanwhile, looks like what you would expect from a stable Canadian utility. The dividend stock trades at 22.6 times earnings with a dividend yield of 4.13% at the time of writing. That’s not a bargain, but it’s also not priced like a stock that needs miracles. You pay for resilience, not for fireworks. When rates fall later in 2026, the market tends to treat utilities more kindly, but the business still needs supportive regulations to deliver results. And right now, $7,000 can still go a long way.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CU | $43.99 | 159 | $1.84 | $292.56 | Quarterly | $6,994.41 |
In short
So it is rock solid TSX buy dividend stocks before RRSP season ends? You could, especially if you want a reliable income with less drama and can accept a slow and steady return. The risks are still important. Regulators may tighten returns, and higher financing costs could hamper cash flow. If you need buoyancy quickly, this will feel sleepy. If you want an RRSP anchor that can build quietly while you focus on life, Canadian Utilities deserves a serious look.
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