Top 10 Canadian Dividend Stocks for 2026
| Stock |
Ticker |
Dividend Yield |
5-Year Growth |
Payout Ratio |
| Royal Bank of Canada |
RY |
3.8% |
7.2% |
45% |
| Toronto-Dominion Bank |
TD |
4.5% |
6.8% |
52% |
| Enbridge |
ENB |
6.8% |
3.2% |
65% |
| Fortis |
FTS |
4.2% |
5.8% |
75% |
| BCE |
BCE |
7.5% |
5.1% |
115%* |
| Telus |
T |
6.2% |
6.5% |
85% |
| Canadian National Railway |
CNR |
2.1% |
11.5% |
32% |
| Brookfield Infrastructure |
BIPC |
4.5% |
8.2% |
70% |
| TC Energy |
TRP |
6.5% |
4.8% |
70% |
| Manulife Financial |
MFC |
4.5% |
9.8% |
35% |
*BCE payout ratio elevated due to recent challenges.
Best Dividend Stocks by Sector
Banks
| Bank |
Yield |
Dividend Streak |
Safety Rating |
| Royal Bank (RY) |
3.8% |
13+ years growth |
High |
| TD Bank (TD) |
4.5% |
13+ years growth |
High |
| Bank of Montreal (BMO) |
4.8% |
13+ years growth |
High |
| Scotiabank (BNS) |
5.8% |
11+ years growth |
Medium-High |
| CIBC (CM) |
5.2% |
12+ years growth |
Medium-High |
| National Bank (NA) |
3.5% |
13+ years growth |
High |
Utilities
| Utility |
Yield |
Dividend Streak |
Safety Rating |
| Fortis (FTS) |
4.2% |
51 years growth |
Very High |
| Emera (EMA) |
5.5% |
15+ years growth |
High |
| Hydro One (H) |
3.2% |
6+ years growth |
Very High |
| Canadian Utilities (CU) |
5.0% |
52 years growth |
Very High |
| Algonquin Power (AQN) |
5.8% |
Dividend cut 2023 |
Medium |
| Capital Power (CPX) |
5.0% |
10+ years growth |
High |
Pipelines & Energy Infrastructure
| Company |
Yield |
Dividend Streak |
Safety Rating |
| Enbridge (ENB) |
6.8% |
29 years growth |
High |
| TC Energy (TRP) |
6.5% |
23 years growth |
Medium-High |
| Pembina Pipeline (PPL) |
5.5% |
12+ years growth |
High |
| Keyera (KEY) |
5.8% |
10+ years growth |
Medium-High |
| Inter Pipeline (IPL) |
N/A |
Acquired |
β |
Telecoms
| Telecom |
Yield |
Dividend Streak |
Safety Rating |
| BCE (BCE) |
7.5% |
15+ years growth |
Medium |
| Telus (T) |
6.2% |
20+ years growth |
Medium-High |
| Rogers (RCI.B) |
3.2% |
Dividend frozen |
Medium |
Note: BCE’s high yield reflects market concerns about competition and debt.
REITs
| REIT |
Yield |
Type |
Safety Rating |
| Canadian Apartment (CAR.UN) |
3.2% |
Residential |
High |
| CT REIT (CRT.UN) |
5.5% |
Retail (Canadian Tire) |
High |
| Granite REIT (GRT.UN) |
4.5% |
Industrial |
High |
| SmartCentres (SRU.UN) |
7.0% |
Retail |
Medium |
| RioCan (REI.UN) |
5.5% |
Retail/Mixed |
Medium-High |
| Allied Properties (AP.UN) |
8.5%* |
Office |
Lower |
*Higher yields often indicate market concerns.
Dividend Aristocrats Canada
Companies with 5+ consecutive years of dividend increases:
| Company |
Sector |
Years Consecutive |
| Canadian Utilities |
Utilities |
52 years |
| Fortis |
Utilities |
51 years |
| Atco |
Utilities |
31 years |
| Enbridge |
Pipelines |
29 years |
| Canadian Natural Resources |
Energy |
24 years |
| TC Energy |
Pipelines |
23 years |
| Telus |
Telecom |
20+ years |
| Canadian Western Bank |
Financials |
31 years |
| Metro |
Retail |
29 years |
| Empire |
Retail |
29 years |
Dividend Yield vs Dividend Growth
High Yield (Income Now)
| Stock |
Yield |
Growth Rate |
| BCE |
7.5% |
~3% |
| Enbridge |
6.8% |
~3% |
| TC Energy |
6.5% |
~3% |
| Telus |
6.2% |
~5% |
Best for: Retirees, income portfolios
Dividend Growth (Income Later)
| Stock |
Yield |
Growth Rate |
| CNR |
2.1% |
~12% |
| Royal Bank |
3.8% |
~7% |
| Manulife |
4.5% |
~10% |
| Brookfield Corp |
1.0% |
~15% |
Best for: Younger investors, long-term compounding
Yield on Cost Example
| Today |
5-Year Growth |
Yield Now |
Yield on Cost (10 Years) |
| RY |
7% |
3.8% |
7.5% |
| CNR |
12% |
2.1% |
6.5% |
| ENB |
3% |
6.8% |
9.1% |
Lesson: High dividend growth can outpace high current yield over time.
Tax Treatment of Dividends
Eligible Dividends (Most Canadian Public Companies)
| Income Level |
Tax on $1,000 Dividend |
Tax on $1,000 Interest |
| $50,000 (ON) |
~$80 |
~$297 |
| $80,000 (ON) |
~$180 |
~$377 |
| $100,000 (ON) |
~$250 |
~$433 |
Dividends are taxed at roughly half the rate of interest income.
Best Account for Dividends
| Account |
Canadian Dividends |
US Dividends |
| TFSA |
Tax-free |
Tax-free (15% withheld) |
| RRSP |
Tax-deferred |
Tax-deferred (no withholding) |
| Taxable |
Low tax (dividend credit) |
Full tax + withholding |
| Best |
Taxable |
RRSP |
Canadian dividends are often best held in taxable accounts due to the dividend tax credit.
Building a Dividend Portfolio
Sample Conservative Income Portfolio
| Holding |
Allocation |
Yield |
| Royal Bank (RY) |
15% |
3.8% |
| TD Bank (TD) |
15% |
4.5% |
| Enbridge (ENB) |
15% |
6.8% |
| Fortis (FTS) |
15% |
4.2% |
| Telus (T) |
10% |
6.2% |
| BCE (BCE) |
10% |
7.5% |
| CNR (CNR) |
10% |
2.1% |
| GICs |
10% |
4.5% |
| Portfolio Yield |
β |
~5.0% |
Monthly Income from $500,000
| Portfolio Yield |
Annual Income |
Monthly Income |
| 4% |
$20,000 |
$1,667 |
| 5% |
$25,000 |
$2,083 |
| 6% |
$30,000 |
$2,500 |
Red Flags to Watch
| Warning Sign |
Examples |
| Yield over 8% |
May indicate dividend at risk |
| Payout ratio over 100% |
Unsustainable |
| Dividend frozen |
Company may be struggling |
| Recent dividend cut |
Consider carefully |
| High debt levels |
Dividend may be next |
| Declining earnings |
Can’t support dividend |
Recent Dividend Cuts (Lessons)
| Company |
What Happened |
| Algonquin Power |
Cut 40% in 2023 |
| Dream Office REIT |
Cut 50%+ |
| Northland Power |
Cut 30% |
High yields often precede cuts.
Dividend ETFs Alternative
| ETF |
Yield |
MER |
Holdings |
| XDV |
4.5% |
0.55% |
30 dividend stocks |
| VDY |
4.2% |
0.21% |
50+ Canadian dividend stocks |
| ZDV |
4.0% |
0.39% |
Low volatility dividend |
| CDZ |
4.0% |
0.66% |
Dividend achievers |
Pros: Diversification, no single-stock risk
Cons: Higher MER than holding individual stocks