As 2024 draws to a close, investors are turning their attention to opportunities for sustained income and growth in 2025. A few top Canadian dividend stocks are worth holding into 2025 to generate steady passive income. These Canadian stocks are also likely to increase their dividends in 2025 and have solid fundamentals and a growing earnings base to support future payouts.
Fortis stock
Fortis (TSX:FTS) is a top dividend stock to hold into 2025. The company is known for consistently paying higher dividends irrespective of market conditions. The electric utility company owns rate-regulated assets that generate predictable earnings, enabling it to pay and increase its dividend every year. Fortis has raised its dividends for 51 consecutive years. Its solid distributions are supported by a resilient business, growing rate base, and expansion of low-risk earnings. Moreover, it is well-positioned to maintain this momentum in the upcoming years.
Fortis projects its rate base to increase at a compound annual growth rate (CAGR) of 6.5% and reach $53 billion by 2029. The rate base expansion will likely drive its earnings, enabling future payouts. Fortis forecasts an annual dividend growth of 4-6% over the next five years. Further, its payouts look well-protected as its energy transmission and distribution assets generate steady earnings in all market conditions. Currently, it offers a healthy yield of 4.0%.
Canadian Natural Resources stock
Canadian Natural Resources (TSX:CNQ) should be on your radar for worry-free and growing passive income in 2025. This oil and gas company has been increasing its dividend at a stellar rate. For instance, the energy company has raised its dividend at a CAGR of 21% in the past 25 years. Moreover, it offers an attractive yield of over 4.6%.
The company's long life, low-decline assets, and high-return, low-capital-intensive projects position it well to generate solid adjusted funds flow, supporting higher payouts. Further, its ability to grow production and improve efficiency will drive higher earnings, returning significant cash to its shareholders. Moreover, Canadian Natural Resources's strong balance sheet and ample liquidity will likely accelerate its growth rate through acquisitions and enable it to pay higher dividends.
Telus
Telus (TSX:T) is known for its solid dividend growth rate and high yield, making it a top choice for passive-income investors in 2025. The leading wireless service provider focuses on growing its dividend by 7-10% under its multi-year dividend-growth program. The Canadian communication giant recently increased its dividend by 7%. Notably, it has increased its dividend 27 times since 2011 and distributed about $21 billion in dividends since 2004.
Telus's growing dividends are supported by its ability to grow profitably. The expansion of its PureFibre Network and 5G infrastructure, growing customer base, lower churn, and expansion into high-growth avenues such as cybersecurity and digital transformation bode well for future growth. While Telus is likely to enhance its shareholders' value through higher dividends, it also offers a high yield of over 7%.
TC Energy
TC Energy (TSX:TRP) is a solid dividend stock to hold into 2025. This energy infrastructure giant has been increasing its dividend every year since 2000. For 2025, the company is expected to continue this trend, with a projected dividend increase of 3-5%.
Its robust business model, reflecting regulated and contracted assets, ensures steady earnings. This, combined with its operational efficiency, supports consistent payouts. Currently, the stock offers an attractive yield of approximately 5.7%, making it appealing for income-focused investors.
Looking ahead, TC Energy is well-positioned to benefit from long-term contracts and its regulated asset base. Additionally, increased system utilization, a strong pipeline of secured projects, and growing demand for natural gas and energy solutions are expected to fuel future growth.
