3 Top-Tier Canadian Stocks That Just Bumped Up Dividends (Again!)

These three Canadian stocks were winners before, but with increases in dividends, they look like no-brainer buys.

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 February 27, 2025 4:30 pm EST

| More on: CNRSLFTRP

Investing in companies that consistently reward their shareholders with dividend increases is a strategy many investors cherish. Recently, three Canadian giants announced dividend hikes, showcasing financial robustness and commitment to shareholders. So, let’s get right into these top-tier Canadian stocks.

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CNR stock

Canadian National Railway (TSX:CNR) has a storied history of connecting Canada’s vast landscapes, and its financial journey mirrors this expansive reach. In its latest earnings report, CN’s board of directors unveiled a 5% increase in the 2025 quarterly cash dividend, marking the 29th consecutive year of such enhancements. This move underscores CN’s confidence in its long-term financial health and its dedication to delivering value to shareholders.

Delving into the numbers, CN reported a net income of $4.45 billion over the trailing 12 months, with a profit margin of 26.09%. While there was a slight dip in quarterly revenue growth year over year by 2.5%, the company’s operating margin stands strong at 39.95%. These figures highlight CN’s efficient operations and its ability to generate substantial profits, even amidst minor revenue fluctuations.

Looking ahead, CN’s strategic initiatives, including infrastructure investments and technological advancements, position the company for sustained growth. The approved Normal Course Issuer Bid to repurchase up to 20 million common shares over the next year further emphasizes CN’s commitment to enhancing shareholder value.

TRP stock

Transitioning to the energy sector, TC Energy (TSX:TRP) has been a cornerstone in North America’s energy landscape. In its recent announcement, the Canadian stock declared a 3.3% increase in its quarterly dividend, bringing it to $0.85 per share for the quarter ending Mar. 31, 2025. This marks the 25th consecutive year of dividend growth, reflecting TC Energy’s stable cash flow and resilient business model.

Financially, TC Energy reported segmented earnings of $8.7 billion for the year ended Dec. 31, 2024, a notable rise from $6.1 billion in 2023. The company’s comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) from continuing operations also saw a 6% uptick, reaching $10.0 billion. These robust figures are bolstered by strong demand in Mexico and increased deliveries on Canadian natural gas pipelines.

Looking forward, TC Energy anticipates its comparable EBITDA for 2025 to be between $10.7 billion and $10.9 billion. This optimistic outlook is driven by new projects slated for service, such as the Southeast Gateway pipeline, plus a full-year contribution from projects initiated in 2024.

Sun Life

In the financial services arena, Sun Life Financial (TSX:SLF) continues to shine brightly. The company’s board of directors recently approved a dividend of $0.84 per share on its common shares. This represents a $0.03 increase from the previous quarter, highlighting Sun Life’s commitment to returning value to its shareholders.

Sun Life’s financial metrics reveal a company on solid footing. With a market capitalization of $45.03 billion and a trailing price-to-earnings (P/E) ratio of 14.94, the insurer showcases a healthy balance sheet. The return on equity stands at 12.94%, indicating efficient use of shareholder funds to generate profits.

However, it’s essential to note that Sun Life has faced some challenges. The U.S. segment experienced higher claims related to severe medical conditions, particularly in its medical stop-loss insurance. This led to a 39% decline in net income for the U.S. business during the fourth quarter. In response, Sun Life plans to adjust insurance prices and remains optimistic about growth opportunities, especially in the dental segment acquired from DentaQuest.

Foolish takeaway

These dividend hikes from CN, TC Energy, and Sun Life Financial not only reflect strong financial health. It also demonstrates the unwavering commitment to enhancing shareholder value. For investors seeking reliable income streams coupled with growth potential, these Canadian stocks present compelling opportunities in the Canadian market.