Investing in dividend stocks can be a great way to generate a steady stream of income while potentially benefiting from capital appreciation. Canadian markets offer a variety of dividend-paying stocks that cater to different risk appetites and investment goals. In this article, we will discuss some of the best Canadian dividend stocks to buy and hold in 2023, considering factors such as dividend yield, payout ratio, and dividend growth.

Please note that this article is for informational purposes only and should not be considered financial advice. Always consult with a professional financial advisor before making any investment decisions.

Best Canadian dividend stocks to buy and hold in 2023

Financial Sector

  1. Royal Bank of Canada (TSX: RY) Dividend Yield: ~3.6% Payout Ratio: ~50%

As the largest bank in Canada by market capitalization, Royal Bank of Canada (RBC) has a long history of stable and growing dividend payments. RBC operates in personal and commercial banking, wealth management, insurance, investor services, and capital markets, providing diversified sources of income. Its strong financial performance and conservative payout ratio make it a solid choice for dividend investors.

  1. Toronto-Dominion Bank (TSX: TD) Dividend Yield: ~3.7% Payout Ratio: ~45%

Toronto-Dominion Bank (TD) is another well-established Canadian bank with a solid dividend history. TD’s strong retail banking presence in both Canada and the United States contributes to its stable earnings. Its relatively low payout ratio and consistent dividend growth make it an attractive option for investors seeking long-term income.

Utilities Sector

  1. Fortis Inc. (TSX: FTS) Dividend Yield: ~3.8% Payout Ratio: ~70%

Fortis is a leading North American utility company with a diversified portfolio of assets, including electric and gas utilities in Canada, the United States, and the Caribbean. Known for its stable earnings and consistent dividend growth, Fortis has increased its dividend for over 45 consecutive years. Its regulated nature and long-term contracts provide a reliable income stream for investors.

  1. Emera Inc. (TSX: EMA) Dividend Yield: ~4.4% Payout Ratio: ~70%
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Emera is an energy and services company with operations in Canada, the United States, and the Caribbean. Its primary focus is on the generation, transmission, and distribution of electricity and gas. With a diversified asset base and a commitment to clean energy, Emera offers an attractive dividend yield and a history of dividend growth.

Telecommunications Sector

  1. BCE Inc. (TSX: BCE) Dividend Yield: ~5.3% Payout Ratio: ~80%

BCE, the parent company of Bell Canada, is one of the largest telecommunications companies in the country. Its operations span wireless, wireline, and media segments, providing a diversified revenue stream. BCE’s strong market position, stable cash flow, and commitment to dividend growth make it an appealing option for income-focused investors.

  1. Telus Corporation (TSX: T) Dividend Yield: ~4.5% Payout Ratio: ~75%

Telus is another major player in the Canadian telecommunications sector, with a focus on wireless and wireline services. The company’s robust wireless subscriber growth, investments in network infrastructure, and commitment to dividend growth contribute to its appeal as a long-term dividend stock.

Energy Sector

  1. Enbridge Inc. (TSX: ENB) Dividend Yield: ~6.2% Payout Ratio: ~75%

Enbridge is a leading North American energy infrastructure company, operating the largest crude oil and liquids transportation system in the world. With a vast network of pipelines and storage facilities, Enbridge generates stable cash flows from long-term contracts and regulated assets. Its attractive dividend yield, along with a history of dividend growth, make it an appealing choice for investors seeking exposure to the energy sector.

  1. Pembina Pipeline Corporation (TSX: PPL) Dividend Yield: ~5.8% Payout Ratio: ~65%

Pembina Pipeline is a Canadian-based energy infrastructure company that operates pipelines, natural gas processing plants, and storage facilities. Its diversified asset base and long-term contracts with customers help ensure stable cash flows. Pembina’s commitment to dividend growth and a conservative payout ratio make it an attractive option for income investors looking to add an energy stock to their portfolios.

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Real Estate Investment Trusts (REITs)

  1. RioCan REIT (TSX: REI.UN) Dividend Yield: ~4.2% Payout Ratio: ~85%

RioCan is one of Canada’s largest real estate investment trusts, primarily focused on retail properties. It has a diversified portfolio of high-quality properties across major Canadian markets. Despite the challenges faced by the retail sector in recent years, RioCan has adapted its strategy to include mixed-use properties and residential development, enhancing its growth prospects. Its attractive dividend yield and resilient business model make it a suitable option for income-focused investors.

  1. Canadian Apartment Properties REIT (TSX: CAR.UN) Dividend Yield: ~2.8% Payout Ratio: ~65%

Canadian Apartment Properties REIT (CAPREIT) is a growth-oriented investment trust that owns and manages a diverse portfolio of multi-unit residential properties across Canada. With a focus on well-located, high-quality properties, CAPREIT benefits from strong demand for rental housing. Its consistent dividend growth and relatively low payout ratio make it an appealing choice for long-term investors seeking exposure to the residential real estate market.


Investing in Canadian dividend stocks can provide a steady source of income and potential capital appreciation. By carefully selecting companies with solid fundamentals, diversified operations, and a commitment to dividend growth, investors can build a resilient and profitable portfolio. It is crucial to conduct thorough research and consult with a professional financial advisor before making any investment decisions.

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