The best dividend stocks offer a mix of income And capital gains over time. Here are three dividend stocks that are built to hold up under a range of economic conditions. As the world becomes more and more fluctuating, it doesn’t hurt to snag a few of these solid names in any setting.
Fortis: the most stable Canadian dividend stock
Fortis (TSX:FTS) is a beacon that can see us through the good and the bad. The share has delivered a stable compound annual return of 6% for twenty years. While that doesn’t seem like much, when you add in the steadily growing dividends, the total return is closer to a compound annual return of 9.5%.
Fortis has the TSX during that time. It also gave these returns half the volatility of the TSX (a beta of 0.4).
In fact, Fortis has a record of consecutively increasing its annual dividend for 52 years. That’s one of the largest dividend growth records in Canada. With 99% of its utilities regulated, the company consistently delivers stable earnings growth to shareholders.
Fortis targets annual interest rate growth of 7% over the next five years. That should translate into mid-single-digit earnings per share and dividend per share growth in the coming year. This dividend stock yields 3.5% today.
Granite REIT: A monthly income real estate stock
A different dividend stock for each market is Granite Real Estate Investment Trust (TSX:GRT.UN). With a market capitalization of $5 billion, it is the largest industrial REIT in Canada.
Granite focuses on high-quality logistics, warehousing and manufacturing properties in Canada, Europe and America. It has all the hallmarks of a quality dividend stock: a rock-solid (and industry-leading) balance sheet, a prudent management team, a strong mix of investment-grade tenants, long-term leases (over five years), a high occupancy rate (over 97%) and rising rents.
It doesn’t hurt that Granite also trades at a significant discount to private market value. Granite has an attractive distribution yield of 4.3% paid monthly. Granite has increased its distribution for 15 years in a row. It has survived several recessions and downturns. It is a resilient stock for any possible market storm.
Chartwell: This dividend stock has a huge trend supporting its growth
Chartwell Retirement Homes (TSX:CSH.UN) is a different stock for every market (except pandemic). It is the largest operator of retirement homes in Canada, with more than 25,000 residents in its facilities.
This stock has risen from the depths of the pandemic, as seniors shunned retirement communities. However, the stock is up 161% since 2023. The occupancy rate has increased from 86% in 2023 to 95% at the end of 2025. This has also resulted in a drastic increase in cash flow per unit.
With a rapidly aging baby boomer population, the market is severely undersupplied to meet the rising demand for retirement homes. Chartwell has the operational, acquisition and development expertise to grow from this trend.
This dividend stock yields 3% today. With an improving balance sheet and strong future earnings growth, it is likely that Chartwell will return to a dividend growth trajectory in the coming years.
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