When the market will get uneven, dividend shares are sometimes a protected harbour. However not all dividend shares are created equal. Some corporations have an extended historical past of not simply paying, however elevating dividends by financial cycles. These are the dividend knights: mature, reliable corporations with a confirmed observe file. And when these commerce at cut price costs, it’s often a uncommon alternative.
Proper now, three Canadian dividend knights stand out: Royal Financial institution of Canada (TSX:RY), TELUS (Tsx:t), and Enbridge (Tsx: Enb). Let’s take a better have a look at why these blue-chip dividend shares could possibly be value shopping for right this moment.
RBC
Royal Financial institution is Canada’s largest financial institution and a pillar of stability within the monetary sector. And now, the dividend inventory is again, far past its 2022 highs and surging. Even so, it holds an enormous dividend now at 3.4% or $6.16 yearly. So, whereas buyers is likely to be involved about mortgage loss provisions, sluggish mortgage development, and the broader economic system, Royal Financial institution continues to ship sturdy outcomes.
Within the second quarter (Q2) of 2025, it reported internet revenue of $4.4 billion, up from 11% the 12 months earlier than. Its capital markets section bounced again, wealth administration held regular, and Canadian banking remained the core engine. The corporate’s widespread fairness tier-one ratio, a key measure of monetary power, stood at 13.2%, nicely above regulatory minimums. Royal Financial institution has raised its dividend yearly since 2011 and stays well-positioned to maintain doing so. At round 14.5 occasions ahead earningsit’s a cut price for long-term buyers.
TELUS
Subsequent up is TELUS, the telecom inventory that’s quietly turn out to be one of the shareholder-friendly corporations within the nation. TELUS provides one of many highest dividend yields amongst its friends, at the moment round 7.4%. That’s come partly as a result of the dividend inventory is down over 35% from its 2022 peak. Larger rates of interest have taken a toll on capital-intensive corporations like telecoms, and TELUS hasn’t been spared.
However the enterprise stays essentially stable. In Q1 2025, TELUS posted income of $5.1 billion, and adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) grew by 4%. The dividend inventory added 218,000 new buyer connections, together with development in cellular and residential web. The dividend has been elevated yearly for over a decade and is supported by sturdy recurring income. With a long-term view, that is the type of discounted dividend knight that’s onerous to cross up.
Enbridge
Lastly, we come to Enbridge, the vitality infrastructure big that’s virtually synonymous with regular dividends. Enbridge has elevated its dividend yearly for practically three many years. At the moment, it provides a yield of 6.1%, a stable yield for a stable dividend inventory. The market has been cautious concerning the firm’s debt and its publicity to grease and gasoline, however its outcomes proceed to impress.
In Q1 2025, Enbridge reported distributable money circulation of $3.8 billion, up 9% 12 months over 12 months. It reaffirmed full-year steerage and maintained a payout ratio inside its goal vary. Moreover, the corporate has secured $28 billion in its backlog. The dividend inventory’s development plan contains pure gasoline enlargement and renewables, providing a future-focused portfolio even because it retains paying right this moment’s beneficiant dividend.
Backside line
In fact, no funding is risk-free. Banks are uncovered to credit score cycles, telecoms face regulatory hurdles, and pipelines are tied to commodity flows and politics. However these three dividend shares have managed by many years of change and nonetheless ship shareholder worth. Higher but, they’re buying and selling at worthwhile costs. And proper now, a $7,000 funding in every inventory would herald $1,179.46 every year!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| RY | $182.00 | 38 | $6.16 | $234.08 | Quarterly | $6,916.00 |
| T | $22.50 | 311 | $1.67 | $519.37 | Quarterly | $6,997.50 |
| ENB | $61.75 | 113 | $3.77 | $426.01 | Quarterly | $6,978.75 |
Royal Financial institution, TELUS, and Enbridge all boast lengthy dividend observe data and dominant positions of their industries. With excessive yields and lower-than-usual valuations, every seems to be like a robust candidate for buyers looking for passive revenue and long-term development. Cut price-priced dividend knights don’t come round typically, and once they do, they’re value contemplating.