Rising geopolitical tensions are adding to market uncertainty. Even so, investing in high-quality dividend stocks can provide a reliable stream of income regardless of how the market moves. Also, most top dividend payers are fundamentally strong companies, implying they have a solid earnings base, which makes them relatively less volatile and helps add stability to your portfolio.
Against this backdrop, here are three dividend stocks I think every investor should own. Notably, these TSX stocks have increased their dividends through recessions, commodity cycles, and shifting interest rate environments. Moreover, they have sustainable payout ratios and are well-positioned to continue rewarding investors with higher payouts.
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Dividend stocks #1: Canadian National Railway
Canadian National Railway (TSX:CNR) is one of the top dividend growers on the TSX, making it a solid stock to generate stable income. As one of the largest rail operators on the continent, Canadian National Railway manages an expansive rail network that connects major industrial regions, ports, and population centres. This infrastructure enables the company to transport a wide range of goods vital to the economy.
Its freight mix spans energy products, agricultural commodities, manufactured materials, and everyday consumer goods. Because the company is not dependent on a single industry, its diversified cargo base helps cushion the impact of economic fluctuations. Even during periods of slower growth, demand for many of these essential goods tends to persist, helping the railway maintain relatively stable operations.
The strength and stability of its business model have enabled the company to generate consistent earnings over time. As a result, it has steadily increased the cash it returns to shareholders. With its latest 3% quarterly dividend increase, the company has now achieved 30 consecutive years of dividend growth.
Looking ahead, the company’s diversified exposure across multiple freight categories should continue to provide stability. As freight volumes gradually recover and operational efficiencies improve, Canadian National Railway is well-positioned to strengthen its earnings power. If these trends continue, investors could see the company maintain its long tradition of dividend growth, making it an attractive option for those seeking reliable income alongside long-term capital appreciation.
Dividend stocks #2: Enbridge
Enbridge (TSX:ENB) is one of the most reliable dividend stocks on the TSX. The energy infrastructure giant has distributed dividends for more than 70 years and raised its payout annually since 1995, even during economic downturns. At current levels, the stock offers an appealing yield of 5.5%.
Enbridge’s payouts are supported by its resilient business model that generates steady earnings and distributable cash flow (DCF) per share. The majority of its earnings before interest, taxes, depreciation, and amortization (EBITDA) is generated from regulated assets and long-term, take-or-pay contracts. This provides stability, limiting exposure to volatile oil and gas prices. About 80% of EBITDA is indexed to inflation, providing a hedge against rising costs.
With its vast North American pipeline and utility network, high asset utilization, strong energy demand, and a sustainable payout ratio, Enbridge appears well-positioned to deliver reliable, growing passive income for long-term investors. Management projects a mid-single-digit increase in dividends over the coming years, supported by steady growth in EBITDA, earnings, and DCF.
Dividend stocks #3: Fortis
Fortis (TSX:FTS) is a must-have income stock. This utility company is focused on electricity transmission and distribution and generates consistent, low-risk earnings and predictable cash flow under rate-regulated frameworks that help it to mitigate economic volatility. This defensive structure has enabled Fortis to pay dividends for 52 consecutive years. It currently offers a quarterly distribution of $0.64 per share, yielding about 3.3%.
Looking ahead, Fortis plans to invest $28.8 billion over five years, primarily in regulated utility assets. This disciplined capital allocation is expected to expand its rate base to $58 billion by 2030 (up from approximately $42 billion in 2025), which will likely drive its earnings and support its projected annual dividend growth of 4% to 6% during this period.
Further, rising electricity demand and ongoing portfolio optimization through the divestment of non-core assets will augur well for future growth.
