Many Canadian companies pay dividends, but few do not reduce their payouts, thanks to their strong fundamentals and commitment to rewarding shareholders. Most of these stable dividend payers are large-cap companies with established businesses that have proven their resilience through market cycles and economic downturns. Their consistent ability to generate stable income even when conditions become uncertain allows them to maintain their dividends and often grow them over time.
Within this context, here are three Canadian stocks that aren’t cutting their payouts, making them the best bets for passive income.
Dividend share no. 1: Fortis
Canada’s largest electric and gas utility, Fortis (TSX:FTS), is one of the most reliable dividend stocks. Fortis has never cut payments or increased the dividend for 51 consecutive years. The defensive model and regulated profit base support higher dividend payments under all market conditions.
Fortis’ interest-regulated assets generate predictable and growing cash flow, which drives quarterly distributions. Additionally, 93% of its assets are in energy transmission and distribution, keeping it protected from market volatility and generation-related risks. This adds stability to this blue-chip company’s operations.
The utility’s $26 billion capital plan will expand its interest base at a compound annual growth rate (CAGR) of 6.5% through 2029. This in turn will expand its interest base and support higher dividend payments. In particular, Fortis expects an annual dividend increase of 4% to 6% until 2029.
In addition to its low-risk profit base, Fortis is also likely to benefit from growing electricity demand due to data center and manufacturing expansion. Overall, Fortis will continue to increase its dividend in the coming years, making it a worry-free income stock.
Dividend stock #2: Enbridge
Enbridge (TSX:ENB) is one of those Canadian stocks that doesn’t cut their payouts. The energy transportation company has increased its dividend for 30 years in a row and maintained payouts through every market downturn since 1995. Moreover, it has been paying dividends for more than seventy years. It currently offers an attractive yield of 5.5% and maintains a sustainable payout ratio of 60-70% of distributable cash flow.
Enbridge’s extensive network of pipelines and energy infrastructure facilities connects key supply and demand nodes across North America. This enormous system has a high occupancy rate and ensures stable and predictable income streams. In fact, about 80% of Enbridge’s earnings before interest, taxes, depreciation and amortization (EBITDA) come from assets backed by regulated returns or by revenue mechanisms designed to protect cash flow. In addition, 98% of EBITDA comes from regulated or long-term take-or-pay contracts, giving the company a reliable financial foundation that supports both its operations and dividends.
Looking ahead, Enbridge expanded its low-risk profit base through the acquisition of three gas companies. Meanwhile, rising demand for electricity and opportunities for the energy transition bode well for growth. Overall, Enbridge is well positioned to continue its dividend growth.
Dividend Stock #3: Canadian National Railway
Canadian National Railway (TSX:CNR) is another top TSX stock that has never cut its dividend, making it an attractive investment for generating passive income. The extensive rail network plays an important role in Canada’s supply chain, making its services essential to the economy. Moreover, the country is witnessing consistent demand for its services, which supports revenues and dividend payments.
The company has increased its dividend for 29 years in a row, driven by its resilient business model, strong operating efficiencies and a long-term focus on growth.
Looking ahead, Canadian National Railway management is targeting adjusted earnings per share (EPS) growth of 10-15% for 2025, followed by high single-digit growth in 2026. These projections are supported by strategic expansion initiatives, diversification across sectors and continued efforts to improve efficiency across all operations. In short, CNR is a reliable stock to buy and hold for decades of dividend income.
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