The best dividend stocks can sound like a dream, right? You get a high income, a safe income, to grow income – all from companies that normally pay dividends throughout their lives. But often one thing is missing: value.
That’s why today we’re going to look at the best dividend stocks for 2025, and the key ingredient? These all still look valuable now. So let’s get into it.
ENB
Enbridge (TSX:ENB) has long been a great option for dividends and income. The company operates a mix of liquid pipelines, gas transportation and utilities, and more recently renewables and low-carbon assets. Much of this is supported by rate-regulated or long-term contracts.
Right now, Enbridge stock is posting strong second-quarter results. The company reported record earnings before interest, taxes, depreciation, and amortization (EBITDA) and reaffirmed its expectations for 2025. Adjusted earnings per share (EPS) were $0.65, and the company also announced a quarterly dividend of $0.94.
All told, Enbridge remains a strong contender among dividend stocks in Canada. This is especially true for investors looking for returns from energy and infrastructure exposure with relatively stable cash flow. However, it is not immune to funding and cost of capital pressures, which have dragged down share prices in the past.
Fszt
Now let’s take a look Fair Capital (TSX:FSZ), an asset manager that can leverage assets under management and organic growth when markets and inflows are favorable. This has also happened in the past, with FSZ benefiting from higher management fees and performance fees.
The company is also posting strong second-quarter results. While the company operated at a net profit loss, total revenue was $163 million, with $160.5 billion in assets under management. Adjusted EBITDA also increased to a margin of 28%, with free cash flow of $75.3 million.
The last point supports the growing dividend, which currently stands at $0.108 per share. Meanwhile, the company has bought back 1.1 million shares, underscoring the dividend stock’s belief that it has a strong future ahead. FSZ shares can now yield 6.8% and could soar if growth in the markets picks up.
BMO
Finally we did that Bank of Montreal (TSX:BMO), one of Canada’s solid Big Six banks offering strong revenue growth. This applies to all segments, including banking, asset and capital markets. The company has a solid capital position with a CET1 ratio of 13.5!.
Meanwhile, third-quarter results were strong, with reported net income up 25% year over year and earnings per share reaching $3.23. Additionally, return on equity (ROE) was reported at 11.6%. The company also announced an annual dividend of $6.52 and plans to cancel up to 30 million shares of its common stock.
BMO stock is therefore one of the stronger contenders among Canadian banks for a balance between dividends and growth. The recent quarterly results show strength, capital discipline and shareholder returns. For those who want a solid mix, this could be the ideal dividend stock.
In short
Taken together, these three could create a strong dividend portfolio. Investors can benefit from Enbridge’s high-yield and diversified energy exposure, BMO’s strong earnings momentum and Fiera’s potential upside. But as always, you should discuss investment decisions with your financial advisor.
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