Some companies distribute part of their profit to shareholders as dividends. Companies that consistently pay dividends are often managed more efficiently because they have to maintain steady cash flows to support these payouts. In addition, investors can reinvest dividends to worsen their wealth and to generate superior long -term returns. Historically, dividend payment shares have performed their non-dividend counterparts better.
Against this background, let’s explore three top Canadian dividend shares that can help build richness in the long term.
TC Energy
TC Energy (TSX: TRP) is an energy infrastructure company that transports natural gas in North America under an interpreter. In addition, it has various electricity-producing facilities with a total capacity of 4.65 gigawatts, so that the electricity is sold from these facilities through Power-Purche Agreements (PPAs) and long-term fixed price contracts. That is why the financial data of the company is less exposed to market volatility, so that stable and predictable cash flows can generate. Supported by these strong cash flows, the company has increased its dividend for 25 consecutive years and currently offers a forward yield of 4.7%.
Moreover, the company established in Calgary is planning to invest around $ 6-$ 7 billion up to and including 2026 annually, which extends its assetabasis. The company has hired $ 5.8 billion in projects and expects to hire around $ 8.5 billion projects this year. Driven by these extensions, the company expects its 2025 to be adapted EBITDA (profit before interest, taxes, depreciation and amortization) between $ 10.8 billion and $ 11 billion, whereby the center of 8.5% represents an increase of 8.5% compared to the previous year. In the midst of these growth initiatives, I believe that TC energy is well equipped to support its healthy dividend payments, making it an attractive investment.
Fortis
Another strong dividend advantage with a considerable potential for building wealth is Fortis (TSX: FTS), which operates 10 regulated utilities that serve 3.5 million customers. With most of its assets regulated and approximately 93% linked to transmission and distribution with a low risk, the financial data of the company remains well protected against economic cycles and market volatility.
Supported by this healthy financial data, the company has delivered an average total return of 9.6% for the previous 20 years. In addition, the company has consistently increased its dividend for 51 consecutive years and is currently offering a forward yield of 3.7%.
In addition, Fortis is expanding its asset base with its $ 26 billion capital investment plan that could grow its rate base to $ 53 billion by the end of 2029, which marks an annual growth of 6.5%. In addition to these extensions, beneficial revisions of customer rate and improving operational efficiency can strengthen financial data. In the meantime, management continues to trust the delivery of 4-6% annual dividend growth until 2029.
Canadian natural resources
Canadian natural resources (TSX: CNQ) is an oil and natural gas producer that operates a diversified and balanced asset base. The large reserves of high quality, low reinvestment needs and efficient activities have reduced their break life point, which improves both profitability and cash flows. Supported by its robust financial performance, the company has its dividend in the last 25 years with 21% oriented and now offers a mandatory forward return of 5.2%.
In addition, CNQ has considerable reserves, with a proven reserve life index of 32 years, which mainly contains high -quality petroleum products. This year the company plans to drill 182 net primary heavy crude oil multilateral wells this year. Together with these organic growth initiatives, the continuous acquisitions of the company could increase production. In the meantime, the center of the company’s production supervision 2025 represents an increase of 12.4% compared to the previous year. With the growing production and a lower break life threshold, the company is well positioned to deliver robust financial results and to expand its track record of dividend growth.
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