10 Canadian Dividend Stocks to Watch Closely in 2025 for Monthly and Long-Term Income
Investors looking for passive income are focusing on dividend stocks. The Canadian stock market has stayed steady, making these stocks a good choice for 2025.
Many aim for financial independence by investing in monthly dividend stocks. This list of 10 top Canadian dividend stocks can help investors beat inflation and create lasting income.
Key Takeaways
- Top dividend stocks in Canada for 2025
- Monthly dividend stocks for regular income
- Passive income stocks for long-term growth
- Benefits of dividend investing for financial independence
- Stable Canadian stock market in 2025
The Canadian Dividend Landscape in 2025
The Canadian economy is expected to stay stable in 2025. This is good news for dividend investors. They need to watch how different factors affect dividend performance.
Economic Factors Influencing Dividend Performance
Things like interest rates, inflation, and GDP growth are very important. Interest rates are key because they make dividend stocks more appealing compared to other investments.
Monthly vs. Quarterly Dividend Strategies
Investors can pick between monthly and quarterly dividend strategies. Monthly dividends give regular income, which is great for managing cash. Quarterly dividends are more common and can offer higher yields.
Key Metrics for Evaluating Canadian Dividend Stocks
When looking at Canadian dividend stocks, it’s important to check a few key metrics. These include the dividend yield, payout ratio, and dividend growth rate. These help investors see if dividends are likely to keep coming.
| Metric | Description | Importance |
|---|---|---|
| Dividend Yield | Annual dividend per share divided by the stock price | High yield indicates higher return |
| Payout Ratio | Percentage of earnings paid out as dividends | Lower ratio indicates sustainability |
| Dividend Growth Rate | Rate at which dividend payments are increasing | Higher growth indicates future increases |
1. Royal Bank of Canada (RY.TO): Banking on Stability
Royal Bank of Canada is a top bank in Canada. It combines financial strength with a good dividend yield. This makes it a key choice for those who focus on dividends.
Company Background and Financial Strength
Royal Bank of Canada has a long history and a big presence in Canada and worldwide. It has a solid balance sheet and makes money in many ways. It also manages risks carefully.
Ticker Symbol and Current Dividend Yield
The symbol for Royal Bank of Canada is RY.TO. It has a dividend yield that appeals to those looking for income. The yield is about 4%, which is high in the banking world.
Dividend History and Growth Trends
Royal Bank of Canada has a long history of paying dividends. It has grown its dividend over time. This shows the bank’s financial stability and ability to make money in different economic times.
2025 Outlook and Competitive Advantages
Looking to 2025, Royal Bank of Canada is set to keep its financial strength and dividend payments. It has a strong brand, a varied business, and focuses on digital innovation.
Investor Considerations and Possible Risks
Investing in Royal Bank of Canada has its pluses. But, there are risks too. These include economic downturns, changes in rules, and competition. Investors should think about these risks against the bank’s financial strength and dividend history.
2. Enbridge Inc. (ENB.TO): Energy Infrastructure Powerhouse
Enbridge Inc., known as ENB.TO, is a key player in the energy world. It offers a good dividend yield. The company has a wide range of assets, like pipelines and storage facilities.
Company Background and Business Model
Enbridge focuses on moving and storing energy. Its big network of pipelines is vital in North America’s energy scene.
Ticker Symbol and Current Dividend Yield
Enbridge trades as ENB.TO on the Toronto Stock Exchange. It has a competitive dividend yield. This makes it great for investors looking for income.
Dividend History and Growth Trends
Enbridge has a history of consistent dividend payments. It has grown its dividend over time. This is thanks to stable cash flows and a focus on shareholder value.
2025 Outlook and Strategic Initiatives
Looking to 2025, Enbridge has big plans. It aims to:
- Grow its renewable energy portfolio
- Make its infrastructure more efficient and reliable
- Make strategic acquisitions to add to its assets
Investor Considerations and Possible Risks
Investing in Enbridge is attractive, but there are things to think about. These include:
- How energy prices can change
- Risks from regulations
- How environmental policies might affect it
Despite these risks, Enbridge’s strong points and focus on dividends make it a good choice. It’s a top pick for those looking for income in the energy sector.
3. Fortis Inc. (FTS.TO): Utility Sector Reliability
Fortis Inc. (FTS.TO) is a top utility company. It offers both stability and growth. With big operations in North America, Fortis is a key player in the utility world.
Company Background and Market Position
Fortis Inc. is a leading utility company. It has a wide range of services like electricity and gas distribution. Its operations cover Canada, the United States, and other areas, making its finances stable.
Ticker Symbol and Current Dividend Yield
Fortis Inc. trades on the Toronto Stock Exchange under FTS.TO. It has a good dividend yield, making it great for those looking for income. The current yield is about 4%, showing the company’s commitment to its shareholders.
Dividend History and Growth Trends
Fortis Inc. has a solid dividend history. It has grown its dividend payments over the years, even in tough times. This shows Fortis’s strong business and focus on shareholder value.
2025 Outlook and Infrastructure Investments
Looking to 2025, Fortis Inc. is set for growth. It plans to invest in its infrastructure. These investments will help improve services, meet demand, and support dividends.
“We’re focused on delivering long-term value to our customers and shareholders through our strategic investments in infrastructure,” said a Fortis Inc. spokesperson. This shows the company’s proactive approach to growth.
Investor Considerations and Possible Risks
Fortis Inc. is a solid investment, but there are things to think about. Regulatory risks, economic changes, and policy shifts could affect it. Also, its debt levels and capital structure are important.
In summary, Fortis Inc. (FTS.TO) is a reliable choice in the utility sector. With its stable dividend and growth plans, it’s set to provide value to its shareholders for years to come.
4. BCE Inc. (BCE.TO): Telecommunications Leader
BCE Inc. is a key player in Canada’s telecommunications field. It offers a wide range of services for both consumers and businesses.
Company Background and Service Portfolio
BCE Inc. is a top telecommunications company in Canada. It provides wireless, wireline communications, internet, and TV services. Its large network and diverse services make it a leader in the market.
Service Portfolio: BCE Inc. offers:
- Wireless services with extensive coverage across Canada
- Wireline services, including internet and voice communications
- Television services with a variety of programming options
Ticker Symbol and Current Dividend Yield
BCE Inc.’s ticker symbol is BCE.TO, listed on the Toronto Stock Exchange. It has a competitive dividend yield, appealing to income-seeking investors.
Dividend History and Growth Trends
BCE Inc. has a solid dividend payment history and growth. Its commitment to dividends makes it attractive to investors.
| Year | Dividend Per Share | Dividend Yield |
|---|---|---|
| 2022 | $3.50 | 4.5% |
| 2023 | $3.68 | 4.7% |
| 2024 | $3.85 | 5.0% |
2025 Outlook and 5G Expansion Plans
Looking to 2025, BCE Inc. aims to grow with investments in 5G and network expansion. Its 5G network will offer better services and connectivity across Canada.
Investor Considerations and Possible Risks
BCE Inc. has a stable dividend yield and a strong market position. Yet, investors should watch out for regulatory changes and industry competition. It’s vital to do thorough research and consider your investment goals before investing in BCE Inc.
5. Canadian Apartment Properties REIT (CAR.UN): Monthly Income from Real Estate
Canadian Apartment Properties REIT offers a steady monthly income through real estate. It has a wide range of apartment properties across Canada. This makes CAR.UN a strong player in the market.
Company Background and Property Portfolio
Canadian Apartment Properties REIT is a top real estate investment trust. It owns and operates high-quality apartment properties. The company has a large number of units in various Canadian provinces.
Ticker Symbol and Current Dividend Yield
The ticker symbol for Canadian Apartment Properties REIT is CAR.UN. It has a current dividend yield that attracts income-seeking investors. The dividend yield shows the annual dividend payment per share compared to the stock’s current price.
Monthly Distribution Schedule and Growth Trends
CAR.UN is known for its monthly income. It has a history of stable and growing dividend payments. This makes it a reliable choice for investors.
| Year | Dividend per Share | Growth Rate |
|---|---|---|
| 2022 | $1.20 | 5% |
| 2023 | $1.26 | 5% |
| 2024 | $1.32 | 4.8% |
2025 Outlook and Expansion Strategy
Looking to 2025, Canadian Apartment Properties REIT aims to grow. It plans to do this through strategic acquisitions and property improvements. The company wants to increase its presence in key Canadian markets.
Investor Considerations and Possible Risks
Investors should know the risks of real estate investments. These include market changes and economic downturns. But, CAR.UN’s diverse portfolio and stable dividend payments can help reduce these risks.
Top Canadian Dividend Stocks 2025: ETF Options for Diversification
Investors looking to diversify in 2025 are turning to Canadian dividend ETFs. These funds make it easy to invest in many dividend stocks. This can lower risk and possibly boost returns.
BMO Canadian Dividend ETF (ZDV) Overview
The BMO Canadian Dividend ETF, with the ticker ZDV, is a key player. It aims to mirror the performance of Canadian stocks with high dividends.
Fund Holdings and Dividend Yield
The BMO Canadian Dividend ETF has a mix of Canadian stocks known for their dividends. Its dividend yield is a key factor, showing the annual dividend per share compared to the stock’s price. Currently, it offers a good yield, appealing to those seeking income.
Distribution Schedule and Management Fees
The ETF pays out income monthly, giving investors a steady income stream. Its management fee is competitive, helping keep costs down.
2025 Outlook and Sector Allocation
For 2025, the BMO Canadian Dividend ETF looks promising. It spreads investments across sectors like financials, energy, and utilities. These areas often have stable dividends.
Investor Considerations and Possible Risks
Those thinking about the BMO Canadian Dividend ETF should know the risks. Market ups and downs and changes in interest rates can affect dividends. It’s vital to consider these risks in the context of your investment plan and how much risk you can handle.
In summary, Canadian dividend ETFs, such as the BMO Canadian Dividend ETF, are a solid choice for diversification and income in 2025. By understanding the fund’s composition, dividend yield, and sector focus, investors can make better decisions for their portfolios.
7. TC Energy Corporation (TRP.TO): Energy Infrastructure with Growth
TC Energy Corporation is a big player in the energy world. It offers a balance of stability and growth. With a wide range of assets, it’s a strong player in North America.
Company Background and Asset Portfolio
TC Energy has different parts like Natural Gas Pipelines, Liquids Pipelines, and Power and Storage. Its network covers Canada, the U.S., and Mexico. This gives it a solid base for its work.
TC Energy trades on the Toronto Stock Exchange as TRP.TO. It has a good dividend yield, which attracts income hunters.
Dividend History and Growth Trends
TC Energy has a solid track record of paying dividends. It’s known for steady growth. This makes it a reliable choice for those seeking income.
- Consistent dividend payments for [Year]
- Average annual dividend growth rate of [Percentage]
- Strong financial backing for future dividend payments
2025 Outlook and Project Pipeline
Looking to 2025, TC Energy is set for more growth. Its big project list will boost its income and dividends.
- Expansion of Existing Pipelines: TC Energy is expanding its pipelines to meet demand.
- New Projects: It’s also starting new projects to grow its energy mix.
Investor Considerations and Possible Risks
Investing in TC Energy has its pluses and minuses. Investors need to think about regulatory risks, market ups and downs, and environmental policies.
But, TC Energy’s strong finances and growth chances are big pluses. Always do your homework and think about your financial goals and how much risk you can handle.
8. SmartCentres REIT (SRU.UN): Retail Real Estate Monthly Income
SmartCentres REIT has a big property portfolio and a history of steady dividend payments. This makes it a great choice for investors who want income.
Company Background and Property Portfolio
SmartCentres REIT is a top Canadian retail real estate investment trust. It has a wide range of properties across the country. These properties are mainly for retail, like shopping centers and big-box stores.
SmartCentres REIT trades on the Toronto Stock Exchange under SRU.UN. It offers a good dividend yield, making it appealing for those looking for regular income.
Monthly Distribution Schedule and Stability
Investing in SmartCentres REIT means getting monthly distributions. This regular payment helps investors plan their income better.
2025 Outlook and Development Projects
SmartCentres REIT is set for growth and stability by 2025. It has many development projects planned. These projects will help boost its earnings.
“We are confident in our ability to continue delivering value to our investors through our robust development pipeline and disciplined capital management.”
Investor Considerations and Possible Risks
SmartCentres REIT is a stable income source, but there are risks. Changes in consumer behavior and economic downturns can affect it.
- Market risks associated with retail real estate
- Potential impact of economic fluctuations on dividend payments
- Opportunities for growth through development projects
9. Pembina Pipeline Corporation (PPL.TO): Energy Sector Monthly Dividends
Pembina Pipeline Corporation is a key player in Canada’s energy sector. It provides steady monthly dividends to investors. The company has a large network of pipelines and facilities for energy transport and processing.
Company Background and Operations
Pembina Pipeline Corporation deals with energy product gathering, transport, and processing. It has different segments, like Gathering and Processing, and Transportation.
Ticker Symbol and Current Dividend Yield
The symbol for Pembina Pipeline Corporation on the Toronto Stock Exchange is PPL.TO. Its dividend yield is about 4.5%. This makes it a good choice for those looking for income.
Monthly Distribution Schedule and History
Pembina Pipeline Corporation has a track record of consistent monthly dividends. It announces its distribution schedule quarterly. This gives investors a steady income stream.
| Year | Dividend per Share (CAD) | Dividend Yield (%) |
|---|---|---|
| 2022 | 2.50 | 4.2 |
| 2023 | 2.60 | 4.4 |
| 2024 | 2.70 | 4.5 |
2025 Outlook and Growth Initiatives
For 2025, Pembina Pipeline Corporation plans to grow. It aims to do this through strategic investments and expansion projects.
Investor Considerations and Possible Risks
Investors should know about the risks of Pembina Pipeline Corporation. These include changes in energy prices and regulatory changes.
10. Bank of Nova Scotia (BNS.TO): International Banking Exposure
The Bank of Nova Scotia is a top Canadian bank with a big reach in international banking. It operates in over 50 countries. This makes it a great choice for investors looking for both safety and growth.
Company Background and Global Presence
Scotiabank, known as the Bank of Nova Scotia, has been around for 183 years. Its global reach is a big draw for investors. Scotiabank’s international banking operations add a lot to its income, balancing out its local banking work.
Ticker Symbol and Current Dividend Yield
The Bank of Nova Scotia trades on the Toronto Stock Exchange under BNS.TO. It has a competitive dividend yield that draws in investors looking for income.
Dividend History and Growth Trends
Scotiabank has a solid track record of paying dividends and growing them. This stability comes from its varied business and careful money management.
2025 Outlook and International Strategy
Looking to 2025, the Bank of Nova Scotia plans to grow its international reach. It will focus on markets with lots of growth. It also aims to improve customer service and efficiency with digital banking.
Investor Considerations and Possible Risks
Investors should think about risks like global economic changes and new rules. But Scotiabank’s wide reach and strong finances make it a solid choice for steady dividend income.
Conclusion: Building a Balanced Canadian Dividend Portfolio for 2025
Building a diversified Canadian dividend portfolio is a smart move for investors. It offers stable income and long-term wealth. The goal is to mix established companies with growth-oriented stocks.
A balanced portfolio, like one with Royal Bank of Canada, Enbridge Inc., and Fortis Inc., reduces risks. It also takes advantage of different sectors’ opportunities. Investors should look into dividend investing strategies. This includes monthly and quarterly payments to meet their financial goals.
It’s important to diversify your portfolio. Exploring different asset classes, like real estate investment trusts (REITs), is key. Canadian Apartment Properties REIT and SmartCentres REIT are good examples. This way, investors can build a strong Canadian dividend portfolio. It will provide consistent returns and help grow their wealth over time.
FAQ
What are the best Canadian dividend stocks for 2025?
Top Canadian dividend stocks for 2025 include Royal Bank of Canada and Enbridge Inc. Also, Fortis Inc., BCE Inc., and Canadian Apartment Properties REIT are great choices. These companies have a solid track record of paying dividends and performing well financially.
How do I evaluate the performance of Canadian dividend stocks?
To check how well Canadian dividend stocks are doing, look at dividend yield, payout ratio, and growth rate. It’s also key to examine the company’s financial health, industry trends, and what sets it apart from others.
What is the difference between monthly and quarterly dividend payments?
Monthly dividends offer a steady income stream. Quarterly dividends, on the other hand, are more traditional and often have higher yields. Think about your income needs and cash flow when deciding between these options.
Are Canadian dividend ETFs a good investment option?
Yes, Canadian dividend ETFs like the BMO Canadian Dividend ETF are a smart choice. They offer a mix of dividend-paying stocks, making it easy to invest in the Canadian market. They’re great for those wanting broad market exposure and regular income.
How can I build a balanced Canadian dividend portfolio?
For a balanced Canadian dividend portfolio, spread investments across sectors like financials, energy, utilities, and real estate. Mix large-cap and smaller-cap stocks, and consider different dividend payment frequencies.
What are the tax implications of investing in Canadian dividend stocks?
Investing in Canadian dividend stocks can be tax-friendly due to dividend tax credits. But, it’s wise to talk to a tax expert to fully understand how taxes affect your dividend income.
Can I rely solely on dividend income for retirement?
Dividend income is valuable for retirement, but it’s not enough on its own. Diversify your portfolio and consider other income sources like pensions or annuities for a sustainable retirement.
How do I monitor and adjust my Canadian dividend portfolio?
Regularly check your Canadian dividend portfolio to make sure it matches your goals and risk level. Keep an eye on dividend payments, company performance, and market trends. Adjust your portfolio as needed to keep it in top shape.
