The inventory market has been exhibiting unbelievable power in the previous couple of years. In truth, it has risen to heights that many would have agreed could be extremely unlikely just some years in the past. Given the place we stand in the present day, and this seemingly unstoppable market motion, it would really feel like it will final endlessly. This certainly appears to be what the market is pricing, not paying any consideration to the true dangers which can be all too current.
But, prefer it or not, planning forward for future vulnerabilities and market dangers is crucial if we need to shield our wealth from a doable, and for my part, more and more seemingly market downturn. With this in thoughts, listed below are the highest three dividend shares to purchase for dependable dividend earnings and relative inventory worth stability.
Fortis: A 3.3% dividend yield
As certainly one of North America’s main utility corporations, Fortis inc. (TSX:FTS) is in a vibrant spot. The corporate has been benefiting from a rising North American inhabitants, price will increase, and the steadiness that comes with being a utility enterprise. Regulated charges and the important nature of the enterprise lead to secure and predictable money flows for Fortis.
For my part, Fortis is among the prime dividend shares in Canada in the present day. The explanations for this are a lot. Firstly, Fortis’ defensive, regulated enterprise is good if we need to put together for doable upcoming market weak point. Secondly, Fortis’ monitor document is one which screams long-term shareholder worth creation. We have to look no additional than the corporate’s dividend historical past – 52 years of consecutive dividend will increase, a 4% dividend improve in 2025, and a projected 4% to six% annual dividend progress price by means of to 2023.
Trying forward, Fortis plans to make use of its robust stability sheet with a purpose to proceed to put money into its community. These investments can be low-risk in nature and simply achievable. They embody preventative upkeep and revolutionary practices to cut back prices. Administration expects these efforts to lead to annual price base progress of seven% over the subsequent 5 years.
Enbridge: A 5.3% yield
My subsequent prime dividend inventory that I’d advocate to anybody is Enbridge Inc. (TSX: ENB). Enbridge is an vitality infrastructure firm with property similar to pipelines and gasoline storage amenities, in addition to utility property.
Like Fortis, Enbridge can also be a defensive enterprise. Its utility enterprise is regulated, and far of its vitality infrastructure property are extremely predictable and low-risk as a result of they’re underpinned by long-term contracts. This has resulted in regular and predictable money flows and earnings for Enbridge. In truth, Enbridge’s dividend has a monitor document of 31 consecutive years of dividend progress.
As you’ll be able to see from Enbridge’s inventory worth graph above, the inventory has fared very well over the long run. This stability is a mirrored image of the corporate’s predictable and low-risk enterprise – traits that make Enbridge inventory one of many prime Canadian dividend shares.
Northwest Healthcare Properties: A 6.3% yield
Lastly, Northwest Healthcare Properties REIT (TSX:NWH.UN) completes this record of my prime Canadian dividend shares. Once more, much like Fortis and Enbridge, Northwest Healthcare Properties operates a necessary and defensive enterprise.
The corporate owns medical properties throughout a diversified record of amenities and places. As such, Northwest is benefiting from an ageing inhabitants. After a tough few years, Northwest is healthier positioned in the present day than it has been shortly. In its newest quarter, the corporate posted a 16% improve in its adjusted funds from operations. This lowered its dividend payout ratio to 85% versus slightly below 100% in the identical interval final 12 months.
This end result speaks to the optimistic dynamics which can be enjoying out for Northwest – lengthy, secure leases, excessive occupancy charges, and inflation safety.
The underside line
These three prime dividend shares in Canada all have defensive companies that may provide shareholders shelter if and when the market turns bitter. However that’s not all, these shares have carried out nicely below any and all market circumstances. Subsequently, I believe that they’re the shares to lean on as we head deeper into 2026.