Bank of Nova Scotia
Bank of Nova Scotia (TSX:BNS), with an unbroken dividend payment record dating back to 1833, is my top choice. The bank offers a wide range of financial services in multiple countries, and its diversified income streams generate stable and reliable cash flows, enabling consistent dividend payments. With a quarterly dividend of $1.10 per share, BNS currently offers a dividend yield of 4.34% based on the January 20 closing price.
The bank’s financial performance has also improved. In the recently reported fourth quarter, revenue and adjusted earnings per share (EPS) rose 15% and 22.9%, respectively. In addition, BNS has strengthened its balance sheet and improved its loan-to-deposit ratio, allowing the company to support sustainable long-term growth.
Looking ahead, BNS is strategically shifting its focus to higher-margin, lower-risk North American markets while reducing exposure to lower-profitability, higher-risk Latin American businesses. This realignment should streamline operations, increase profitability and strengthen dividend sustainability, making BNS an attractive buying opportunity.
Canadian natural resources
My second choice is Canadian natural resources (TSX:CNQ), which has increased its dividend for 25 years in a row at an impressive compound annual growth rate of 21%. With a quarterly dividend of $0.5875 per share, the company currently offers an attractive dividend yield of 4.94%. As a leading oil and natural gas producer, CNQ has a diversified and balanced asset base, supported by high-quality, low-risk reserves that require relatively modest capital reinvestment. Its efficient operations and disciplined, flexible capital allocation generate strong and sustainable cash flows, enabling consistent dividend growth.
CNQ has approximately five billion barrels of oil equivalent reserves – the second largest among its global peers – and a proven reserve life index of approximately 32 years, delivering strong long-term production visibility and sustainable cash generation. The company is further strengthening its production profile through planned capital investments of $6.7 billion in 2025 and $6.4 billion in 2026. Based on these investments, the company expects average production this year to be between 1,590 and 1,650 thousand barrels of oil equivalent per day (MBOE/d), with the midpoint representing an increase of 3.2% year-over-year.
Given its high-quality reserves, disciplined capital allocation and steady production growth prospects, CNQ appears well positioned to support dividend growth in the coming years.
Fortis
My final choice is Fortis (TSX:FTS), a regulated electric and natural gas company that has increased its dividend for 52 years in a row. Backed by a predominantly regulated asset base focused on low-risk transmission and distribution activities, Fortis’s financial performance is relatively insulated from economic cycles and commodity price volatility. The steadily growing asset base has led to consistent earnings growth, allowing for reliable dividend increases. Meanwhile, the forward dividend yield currently stands at 3.53%.
Looking ahead, energy demand is expected to rise due to increased electrification, the expansion of AI-ready data centers, population growth and broader economic development – ​​trends that Fortis should benefit from. To capitalize on these opportunities, the company has established a $28.8 billion capital investment plan to expand its interest base. These investments can drive interest rate base growth of approximately 7% per year, supporting long-term earnings growth and future dividend payments.
Management has also targeted an annual dividend increase of 4 to 6% until 2030. Given its defensive business model, visible growth prospects and strong dividend track record, Fortis appears to be an attractive long-term dividend investment.
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