Dividend shares are the highest investments for traders to begin an revenue stream. By proudly owning shares in firms that distribute a portion of their income to shareholders, traders can obtain common money funds that assist offset day-to-day bills or complement different sources of revenue. Over time, reinvesting these dividends may help traders accumulate extra shares and profit from long-term compounding.
That mentioned, dividends ought to by no means be taken as a right. Payouts aren’t assured, and firms can cut back or droop them if monetary circumstances deteriorate. For that motive, the sustainability of a dividend is way extra essential than its headline yield. One ought to deal with companies with a observe document of sustaining and rising their dividends, as these firms are usually financially disciplined and operationally resilient.
With that framework in thoughts, if I had been restricted to purchasing simply two dividend shares in 2026, my focus could be on Canadian firms with well-established companies, resilient money flows, and a dedication to rewarding shareholders. These shares usually tend to preserve their payouts even throughout difficult intervals.
Dividend inventory #1: TC Power
TC Power (TSX: TRP) is a beautiful dividend inventory value contemplating in 2026. Its robust document of dividend development (25 consecutive years), resilient enterprise mannequin, and visibility into future dividend development make it a high revenue inventory. Furthermore, TC Power is well-positioned to take care of this development streak.
Notably, virtually all of its money circulation comes from regulated property or take-or-pay contracts. This working construction insulates its earnings from commodity value volatility and gives dependable money throughout market cycles. Additional, its intensive pipeline community is extremely utilized, supporting its money circulation and dividend funds.
TC Power can also be prone to profit from its diversified income base, together with pure fuel, nuclear, wind, and photo voltaic property. Furthermore, TC Power is well-positioned to capitalize on the continuing shift towards lower-emission power sources.
Trying forward, the corporate plans to speculate $6–$7 billion in low-risk initiatives by 2026 and targets dividend development of three% to five% per 12 months, making it an ideal TSX inventory for traders looking for reliable passive revenue.
Dividend inventory #2: Canadian Utilities
Utility shares are high investments for dividend seekers. As these firms function regulated, defensive companies constructed round important companies, they generate predictable and rising money flows even throughout financial slowdowns. This helps constant dividend funds throughout market cycles.
Inside this area, Canadian Utilities (TSX:CU) is one in every of my high picks for its stellar dividend development historical past. The utility large has raised its dividend for 53 consecutive years, displaying resilience by a number of financial downturns. Its payouts are supported by its extremely contracted and controlled earnings base.
Canadian Utilities continues to spend money on development, increasing its international regulated price base. It will increase its low-risk earnings base and help greater dividend funds. From 2025 to 2027, it plans to speculate about $6.1 billion in regulated utility operations, a transfer anticipated to elevate long-term earnings and money circulation. The corporate can also be pursuing alternatives in clear power, electrical energy era, and power storage, additional strengthening its future revenue potential.
