This is a guest contribution by Bob Ciura of Sure Dividend. Sure Dividend helps individual investors build high quality dividend growth portfolios for the long run.
Investors in the U.S. should not overlook Canadian stocks, many of which have higher dividend yields than their U.S.-based counterparts.
Many Canadian stocks trade on the TSX 60 Index. Many of these Canadian stocks have high yields above 5%, making them potentially appealing for income investors.
Enbridge Inc. (ENB)
Enbridge is one of the major Canadian oil stocks that operates the following segments: Liquids Pipelines, Gas Distributions, Energy Services, Gas Transmission & Midstream, and Green Power & Transmission.
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Enbridge reported its second quarter earnings results in August. The company generated revenues of CAD$14.9 billion during the period, which was up 31% compared to the previous year’s quarter, and which pencils out to US$10.8 billion. During the quarter, Enbridge managed to grow its adjusted EBITDA by 7% year over year, to CAD$4.6 billion, up from CAD$4.3 billion during the previous year’s quarter.
Enbridge was able to generate distributable cash flows of CAD$2.9 billion, which equates to US$2.1 billion, or US$0.96 on a per-share basis. While distributable cash flows in 2024 were down in US Dollars, that was due to currency rate movements – results were higher in Canadian Dollars. The same holds true for Enbridge’s dividend, which was increased by 3% in Canadian Dollars, to CAD$0.9424 at the beginning of the current year.
Enbridge is forecasting distributable cash flows in a range of CAD$5.50 - CAD$5.90 per share for the current year. Using current exchange rates, this equates to USD$4.11 at the midpoint of the guidance range, which would be up 7% versus 2024.
Enbridge produced relatively consistent distributable cash flow growth over the last decade, although not at a high rate. Takeovers such as the one of Spectra Energy have caused Enbridge’s share count to rise over the years, which is why distributable cash flow-per-share declined in some years even though company-wide distributable cash flow kept climbing.
Enbridge put billions worth of projects into service over the last couple of years, and more growth projects are under construction, which includes new energy assets such as wind farms as well as hydrocarbon assets such as pipelines. According to management, growth will persist going forward, as Enbridge targets long-term cash flow per share growth of 5%-7%.
ENB has increased its dividend for 30 consecutive years in its home currency, and the stock currently yields 5.5%.
Bank of Nova Scotia (BNS)
Bank of Nova Scotia is one of the “Big Five” Canadian banks. Scotiabank reports in four core business segments – Canadian Banking, International Banking, Global Wealth Management, and Global Banking & Markets.
Scotiabank reported fiscal Q3 2025 results on 8/26/25. For the quarter, revenue rose 13% year over year to C$9.5 billion, while non-interest expenses rose 2.8% to C$5.1 billion. Provision for credit losses fell 1.0% to C$1.0 billion. Net income came in C$2.5 billion, up 32% from a year ago. Ultimately, the diluted earnings per share jumped 30% to C$1.84. Return on equity was 12.2% compared to 9.8% a year ago.
Adjusted net income came in at C$2.5 billion, up 15% from a year ago. And adjusted EPS rose 15% year over year to C$1.88. Adjusted ROE was 12.4% versus 11.3% a year ago. The bank’s capital position remained stable with the Common Equity Tier 1 ratio at 13.3%, flat versus a year ago.
For FY ’25 year-to-date, revenue rose 11% YOY to C$27.9 billion, while non-interest expenses jumped 16% to $16.7 billion. Ultimately, the bank’s adjusted earnings per share (“EPS”) rose 5.3% to C$5.16.
The bank’s competitive advantage is in its international growth strategy, as it is willing to acquire growth outside of its primary markets. When the global economic environment improves, its international strategy should be an advantage for growth. Scotiabank’s international focus is on Latin American geographies like Mexico and Chile.
BNS stock currently yields 5.0%.
Canadian Utilities (CDUAF)
Canadian Utilities is a $5.76 billion company with approximately 5,000 employees. ATCO owns 53% of Canadian Utilities. Based in Alberta, Canadian Utilities is a diversified global energy infrastructure corporation delivering solutions in Electricity, Pipelines & Liquid, and Retail Energy. The company prides itself on having Canada’s longest consecutive years of dividend increases, with a 53-year streak.
On July 30, 2025, Canadian Utilities announced its Q2 results for the period ending June 30, 2025. Adjusted earnings were $88.3 million ($0.33 per share), up $2.9 million ($0.02 per share) year-over-year. The growth in adjusted earnings was primarily driven by growth in the rate base and stronger seasonal spreads in natural gas storage services in ATCO Energy Systems and ATCO EnPower.
This was partially offset by a lower return on equity (ROE), the completion of ECM funding recorded in the prior year, and lower compensation related to turbine availability guarantees at the Forty Mile wind facility. GAAP EPS for the quarter was $0.25.
Additionally, Canadian Utilities continued advancing major infrastructure projects, including the Yellowhead Mainline Project in Natural Gas Transmission and the Central East Transfer Out Project in Electricity Transmission. The company also invested $279.8 million in capital expenditures in Q2, with the majority allocated to regulated utilities within ATCO Energy Systems and ATCO Australia.
By benefiting from a stable business model, Canadian Utilities can slowly, but progressively, grow its earnings. The company consistently invests in new projects and benefits from the base rate increases, which grow at around 3% to 4% annually.
Combining the company’s growth projects and the possibility of modest margin improvements, we retain our projected growth rate at 4%. Our DPS CAGR estimate remains at 2.5%. The company will likely improve its payout ratio before its new projects start producing enough cash flows to re-accelerate dividend growth.
The company’s competitive advantage lies in the moat regulated utilizes are surrounded by. With no easy entry in the sector, regulated utilities enjoy an oligopolistic market with little competition threat. The company’s resiliency has been proven for decade after decade. Despite multiple recessions and uncertain environments over the half a century, the company has withstood every one of them while raising its dividend.
CDUAF has increased its dividend for 53 consecutive years, making it a Dividend King. Shares currently yield 5.0%.
Disclosure: No positions in any stocks mentioned
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