3 Blue-Chip Dividend Stocks Every Canadian Should Own

Canadian investors looking for a reliable source of passive income should consider investing in dividend stocks. While not all dividend-paying stocks are reliable or guarantee regular payouts, some Canadian stocks have consistently performed well year after year and even increased their payouts. These are large, well-established Canadian companies backed by strong fundamentals and a stable earnings base, often referred to as blue chip stocks.

Against this backdrop, here are three top dividend stocks that every Canadian should own for reliable, worry-free passive income.

Blue-chip dividend stock #1

Fortis (TSX:FTS) is an attractive, high-quality dividend stock that every Canadian should own for regular income. This utility operates a rate-regulated business and generates predictable cash flows regardless of market conditions. In addition, it focuses on energy transmission and distribution, reducing exposure to risks associated with energy generation and commodity price fluctuations.

Thanks to its defensive business model and growing cash flow, Fortis has consistently paid and increased its quarterly dividends. To date, Fortis has consistently increased dividend payments for 52 years, making it an attractive dividend stock to own for years to come. Currently, FTS offers a return of approximately 3.5%.

The utility giant is well positioned to continue raising its dividend in the coming years, supported by its resilient earnings and growing interest base. Fortis’ $28.8 billion capital plan will enable the company to expand its regulated asset base and strengthen its earnings with low risk. Management expects the company’s interest base to grow at a compound annual growth rate (CAGR) of 7% through 2030. This will support steady earnings growth and drive a 4% to 6% increase in dividends over the same period.

Moreover, Fortis is poised to benefit from the rising demand for electricity from data centers, mining and manufacturing industries, allowing it to achieve strong growth in the future.

Blue-chip dividend stock #2

TC Energy (TSX:TRP) is another top-quality Canadian dividend stock to consider now for hassle-free passive income. The energy infrastructure company’s extensive natural gas pipeline network connects key gas producing regions to high-demand markets, ensuring strong and consistent system utilization and supporting cash flow.

Furthermore, TC Energy also benefits from a diversified power generation portfolio. This balanced energy mix adds resilience to the business model and positions the company to take advantage of growth opportunities in the global shift to cleaner energy.

Notably, the majority of TC Energy’s revenue comes from regulated or take-or-pay contracts, which insulates the company from commodity price fluctuations. The regulated and contractual structure provides stable cash flow and adds stability, allowing the company to consistently increase its dividend. TRP has increased its dividend for 25 years in a row. It currently pays $0.85 per share in quarterly dividends, which gives a decent yield of over 4.8%.

The company’s multi-billion dollar capital projects will expand its contracted and regulated asset base, supporting higher dividend payments in the future. TC Energy’s management aims for annual dividend growth of 3-5% in the coming years. Furthermore, rising global energy demand, the expansion of LNG and the shift to cleaner energy sources provide a solid foundation for future growth.

Blue-chip dividend stock #3

Canadian natural resources (TSX:CNQ) is another top dividend stock to own for the long term. This oil and gas producer has increased its dividend for 25 years in a row. Furthermore, CNQ’s dividend grew at a CAGR of 21% during that period. It pays a quarterly dividend of $0.588 per share, which reflects a high yield of 5.3%.

The company’s resilient and growing payouts are driven by high-quality assets and a balanced production mix that delivers consistent cash flow through commodity cycles. In addition to dividends, CNQ has also posted solid capital gains. Over the past five years, the stock has grown at a CAGR of over 39%, delivering a total capital gain of over 418%.

The company’s longevity, low reserves, operational discipline and strong profitability will enable it to sustain future payouts. Additionally, CNQ’s portfolio of low-risk, conventional projects that can be executed quickly and require minimal capital bode well for growth. Additionally, Canadian Natural’s vast undeveloped land base offers years of drilling potential, further strengthening the growth story and enabling higher payouts.