3 of the Safest Dividend Stocks in Canada

If you need a pick me up during this downturn, one that will last decades, consider these three safe stocks with over 25 years of dividend increases.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published March 31, 2023 12:00 pm EDT

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Before I jump into my picks, let me explain what I mean by safe dividend stocks. These are companies that provide long-term dividends, and have for decades. They aren’t about to cut them at any point, and you can look forward to locking in a strong yield and see it coming in each quarter, year, or even month.

That means we’re looking here at blue-chip companies that fall into the category of Dividend Aristocrats. These are companies that have increased their dividend each year for the last 25 years or more. So let’s get right into these safe dividend stocks.

A worker overlooks an oil refinery plant. — Source: Getty Images

Canadian Utilities

Canadian Utilities (TSX:CU) is still the only Dividend King on the TSX today. That means not only has it surpassed Dividend Aristocrat status, it has also increased its dividend each year for the last 50 years or more!

So if you want safe dividend stocks, I would certainly consider Canadian Utilities. The reason it has been able to grow it for this long is because it is in the utilities sector. We need power, and this company provides it throughout North America.

What’s more, the company also has a strong future given the shift to renewable energy, and the green power provided by Canadian Utilities will certainly be part of it. Therefore, I would certainly pick it up with its yield at 4.88%, and while shares are down 4% in that last year.

Fortis

While it may not be a Dividend King yet, Fortis (TSX:FTS) has just one more year to go to achieve that status. So again, I would certainly consider it one of the safest dividend stocks out there. You can pick up Fortis stock within the utilities sector, as well, and continue to see growth thanks to both its organic growth and growth through acquisitions.

And just like Canadian Utilities stock, the company continues to be a stable investment since it provides power that we’ll always need. That power will also transition to renewable energy as the world makes the shift.

Therefore, Fortis stock is definitely a great consideration right now. It offers a 3.93% dividend yield, with shares down 8% in the last year alone.

BCE

And now for something completely different, we have BCE (TSX:BCE) within the telecommunications sector. Even though BCE stock has been around for decades, managing the transition from telephones, to computers, to the internet and media, it’s still a great buy.

That’s simply because the infrastructure needed to connect Canada continues to grow. BCE stock has been at the forefront of that growth, offering the highest internet speeds in the country as of writing. So if you’re looking for dividend stocks that will remain strong, definitely consider BCE stock.

And now is a great time. The company offers a dividend yield at 6.37%, and shares are down 11% in the last year alone. However, given its history BCE stock, along with these other safe dividend stocks, will certainly be ones you’ll want to hold onto for decades.

Bottom line

If you’re looking for safety during this turbulent time, I don’t blame you. Looking to Dividend Aristocrats that have made it through recessions and come out strong is a great place to start. That’s why I would certainly consider picking up these three dividend stocks on the TSX today.