CU
Canadian utilities (TSX:CU) is one of the quietest yet most reliable dividend stocks on the TSX. It operates regulated electricity, natural gas and energy infrastructure assets in Canada, the United States, Australia and Europe. That regulated model is important because it generates predictable revenues related to essential services. Over the past year, CU’s share price has been relatively flat to slightly up, which may not be exciting for momentum investors, but that stability is exactly what long-term investors are looking for. While other stocks fluctuate wildly with interest rates or commodity prices, CU tends to move slowly and deliberately.
This steady performance reflects how the market views the dividend stock. CU is rarely seen as a growth story. Instead, it’s priced like a bond-like stock that you pay to wait. During periods when markets are volatile or uncertain, CU often holds up better than most dividend stocks. That behavior helps investors stay invested and focused on income, rather than reacting emotionally to short-term price movements.
In income
From an earnings perspective, Canadian Utilities continues to do what it has always done: generate stable cash flow and reinvest it conservatively. In its latest results, the dividend stock reported steady adjusted gains, supported by managed interest rate base growth and long-term contracted assets. Cost pressures and interest rates have been carefully managed and management has remained disciplined on capital expenditure. This consistency allows CU to plan years in advance instead of quarter by quarter, which is a major advantage in the utility space.
Appreciation is also part of the profession. CU trades at a reasonable earnings multiple for a regulated utility, reflecting its low risk profile rather than aggressive growth expectations. The dividend yield is around 4.3% at the time of writing, which is attractive without looking excessive. Importantly, the payout is well supported by cash flow, and the dividend stock doesn’t need to take on excessive risk to maintain this.
Income machine
Where CU really sets itself apart is its dividend history. Canadian Utilities has increased its dividend for more than 50 years in a row, making it one of the longest dividend growth streaks in Canada. This is important for passive income, as growing dividends protect your purchasing power over time. If you owned 100 shares ten years ago, your income today would be significantly higher without you doing anything. That kind of growth turns a small starting position into a reliable revenue stream.
For someone focused on passive income, CU checks the boxes that matter most. It manages key assets, delivers regulated returns, maintains a strong balance sheet and prioritizes dividend growth. You don’t rely on commodity prices, consumer spending or economic prosperity. You trust that people will continue to use electricity and natural gas, which is as predictable as it gets. Over time, reinvesting dividends or simply holding them for multiple cycles can increase income in a very real way.
In short
The takeaway is simple. You don’t need thousands of stocks or a huge portfolio to build passive income. One hundred shares of a high-quality dividend stock such as Canadian Utilities can form the basis. In fact, here’s what that could yield annually starting today.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CU | $42.18 | 100 | $1.83 | $183.00 | Quarterly | $4,218.00 |
It may start out quietly, but with consistency, dividend growth, and time, that small decision can turn into an income stream that feels much bigger than it ever seemed on day one.
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