The stock market has been showing unbelievable strength in the last few years. In fact, it has risen to heights that many would have agreed would be highly unlikely just a few years ago. Given where we stand today, and this seemingly unstoppable market action, it might feel like this will last forever. This surely seems to be what the market is pricing, not paying any attention to the real risks that are all too present.
Yet, like it or not, planning ahead for future vulnerabilities and market risks is essential if we want to protect our wealth from a possible, and in my view, increasingly likely market downturn. With this in mind, here are the top three dividend stocks to buy for reliable dividend income and relative stock price stability.
Fortis: A 3.3% dividend yield
As one of North America’s leading utility companies, Fortis inc. (TSX:FTS) is in a bright spot. The company has been benefiting from a growing North American population, rate increases, and the stability that comes with being a utility business. Regulated rates and the essential nature of the business result in stable and predictable cash flows for Fortis.
In my view, Fortis is one of the top dividend stocks in Canada today. The reasons for this are plenty. Firstly, Fortis’ defensive, regulated business is ideal if we want to prepare for possible upcoming market weakness. Secondly, Fortis’ track record is one that screams long-term shareholder value creation. We need to look no further than the company’s dividend history – 52 years of consecutive dividend increases, a 4% dividend increase in 2025, and a projected 4% to 6% annual dividend growth rate through to 2023.
Looking ahead, Fortis plans to use its strong balance sheet in order to continue to invest in its network. These investments will be low-risk in nature and easily achievable. They include preventative maintenance and innovative practices to reduce costs. Management expects these efforts to result in annual rate base growth of 7% over the next five years.
Enbridge: A 5.3% yield
My next top dividend stock that I’d recommend to anyone is Enbridge Inc. (TSX:ENB). Enbridge is an energy infrastructure company with assets such as pipelines and gas storage facilities, as well as utility assets.
Like Fortis, Enbridge is also a defensive business. Its utility business is regulated, and much of its energy infrastructure assets are highly predictable and low-risk because they are underpinned by long-term contracts. This has resulted in steady and predictable cash flows and earnings for Enbridge. In fact, Enbridge’s dividend has a track record of 31 consecutive years of dividend growth.
As you can see from Enbridge’s stock price graph above, the stock has fared really well over the long term. This stability is a reflection of the company’s predictable and low-risk business – traits that make Enbridge stock one of the top Canadian dividend stocks.
Northwest Healthcare Properties: A 6.3% yield
Finally, Northwest Healthcare Properties REIT (TSX:NWH.UN) completes this list of my top Canadian dividend stocks. Again, similar to Fortis and Enbridge, Northwest Healthcare Properties operates an essential and defensive business.
The company owns medical properties across a diversified list of facilities and locations. As such, Northwest is benefiting from an aging population. After a difficult few years, Northwest is better positioned today than it has been in a while. In its latest quarter, the company posted a 16% increase in its adjusted funds from operations. This reduced its dividend payout ratio to 85% versus just under 100% in the same period last year.
This result speaks to the positive dynamics that are playing out for Northwest – long, stable leases, high occupancy rates, and inflation protection.
The bottom line
These three top dividend stocks in Canada all have defensive businesses that can offer shareholders shelter if and when the market turns sour. But that’s not all, these stocks have performed well under any and all market conditions. Therefore, I think that they are the stocks to lean on as we head deeper into 2026.
