By focusing on TSX stocks with a proven history of paying dividends, investors can generate reliable income. Furthermore, companies with resilient business models, steadily growing profits and payout ratios that are well covered by cash flow are much more likely to be able to maintain and increase their dividends over the years.
So if you have $5,000, here are five income stocks you can buy and hold forever. These fundamentally strong companies have a solid distribution history.
Income Share #1: Canadian Utilities
Canadian utilities (TSX:CU) is a must-own income stock for its exceptional dividend reliability. The company operates a highly regulated and contracted utility that delivers stable revenues and predictable cash flow in all market conditions. Thanks to its resilient and growing cash flow, Canadian Utilities has increased its dividend for 53 years in a row.
Looking ahead, Canadian Utilities is well positioned to continue its dividend growth. The company’s planned investments of approximately $6.1 billion in regulated utilities between 2025 and 2027 will expand the global regulated rate base and boost profits, supporting payouts.
Income share #2: Fortis
Investors looking for reliable income might want to consider this Fortis (TSX:FTS). The company operates a highly defensive business built around rate-regulated utilities, which deliver predictable revenues and cash flow. This stability has supported Fortis through multiple market cycles and allowed the company to increase its dividend for 52 years in a row.
By focusing primarily on the transmission and distribution of electricity and gas, Fortis remains relatively immune to fluctuations in commodity prices and operational volatility. The growth prospects are strong. The company’s planned investment of $28.8 billion will power its regulated asset base. These projects support management’s expectation of annual dividend growth of 4% to 6%. In addition, Fortis will benefit from the rising demand for electricity from production and data centers.
Income Share #3: Enbridge
Enbridge (TSX:ENB) is a worry-free dividend stock. The energy infrastructure company’s payouts are supported by its resilient business model that generates predictable cash flow. The extensive pipeline network connects key supply and demand markets and witnesses high utilization rates and steady cash flow.
In addition, revenue is determined by long-term, low-risk contracts, many of which are regulated or structured on a take-or-pay basis, limiting exposure to commodity price fluctuations. Inflation-related gains further strengthen stability. Resilient cash flows have allowed the company to increase its dividend for 31 years in a row.
Looking ahead, the continued strength of its liquid pipeline business, momentum in gas distribution and storage, expansion of its renewable portfolio and exposure to rising AI-driven energy demand position the company well for solid earnings and dividend growth.
Income Share No. 4: Toronto-Dominion Bank
Toronto Dominion Bank (TSX: TD) is an attractive dividend investment. The bank has paid dividends for 169 consecutive years and has increased its payout by about 8% annually since 2016, supported by steadily rising profits.
TD benefits from a diversified revenue base and consistent loan and deposit growth. At the same time, the bank maintains a robust balance sheet and a disciplined focus on operational efficiency, which helps protect profitability across economic cycles.
Moreover, TD’s strategy of pursuing targeted acquisitions further strengthens its long-term prospects. These investments are intended to expand the bank’s capabilities, deepen customer relationships and support incremental earnings growth over time. The payout ratio is typically between 40% and 50%, providing a significant margin of safety while leaving room to reinvest in the business. Overall, its sustainable earnings mean it can maintain and gradually increase its dividend in the coming years.
Income share #5: Canadian natural resources
Canadian natural resources (TSX:CNQ) is an attractive income stock. The oil and gas producer has increased its dividend for 25 years in a row, with an impressive compound annual growth rate of 21%. The higher distribution is supported by a diversified portfolio of assets with long life and low price decline that generate reliable cash flow.
Looking ahead, CNQ’s disciplined capital allocation, operating efficiencies and significant inventory of proven undeveloped reserves bode well for growth. Moreover, the strategic acquisitions are likely to accelerate growth and support higher dividend payments.
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