1 Canadian Dividend Stock I’d Buy Right Now

A Canadian stock can be a great option right now as the market is sitting in an uncomfortable but opportunity-rich middle ground. Interest rates are no longer climbing aggressively, but optimism hasn’t fully returned, which keeps valuations from getting stretched. Many Canadian companies are still trading below historical averages while continuing to generate strong cash flow.

For investors willing to look past short-term noise, this creates a window where you can buy quality businesses at reasonable prices and get paid to wait through dividends. Historically, these moments tend to reward patience more than perfection. So, let’s look at one opportunity on the TSX today.

TRP

TC Energy (TSX:TRP) is one of the largest and most strategically important energy infrastructure companies in North America. It owns and operates an extensive network of natural gas pipelines, storage facilities, and power generation assets that move energy across Canada, the U.S., and Mexico. The Canadian stock’s core strength is that it doesn’t depend on fluctuating oil or gas prices. Instead, it earns revenue through long-term contracts and regulated agreements, which provide visibility into future cash flows. This makes TC Energy less volatile than producers and more aligned with income-focused investors.

Over the past few years, TC Energy has been in transition, and that uncertainty pushed many investors away. The Canadian stock faced cost overruns on major projects and carried a heavy debt load. This pressured the share price. In response, management took steps to simplify the business, including spinning off its liquids pipelines segment into South Bow and narrowing its focus to natural gas infrastructure. While these moves caused short-term disruption, they also made the company more streamlined and easier to evaluate, which can be a positive setup for long-term investors.

Into earnings

In its most recent earnings report, TC Energy delivered results that highlighted the stability of its underlying operations. Revenue remained steady, supported by strong demand for natural gas transportation and long-term contracted volumes across its pipeline network. While earnings per share were weighed down by higher interest expenses, operating income held up well, showing that the core business continues to perform as expected. This distinction matters as it shows that the business itself isn’t broken; it’s adjusting to a new financial environment.

Management used the earnings update to reinforce its commitment to improving the balance sheet. With major capital projects largely completed, TC Energy expects capital spending to trend lower in the coming years. That shift is important as it frees up cash that can be used to reduce debt, improve credit metrics, and protect the dividend. For income investors, the direction of capital spending is often just as important as earnings, because it directly affects dividend sustainability.

Foolish takeaway

TC Energy could be a solid Canadian dividend stock to buy right now because it offers income that feels earned, not stretched. The dividend stands out in a market where many quality stocks yield far less. Unlike some high-yield names, TC Energy’s dividend is supported by contracted cash flows tied to essential infrastructure. Natural gas demand remains strong, especially as it plays a growing role in power generation and global energy exports, giving the company a long runway. Right now, here’s what just $7,000 could bring in from dividends alone.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTTRP$75.0593$3.40$316.20Quarterly$6,979.65

Looking ahead, TC Energy doesn’t need a dramatic turnaround to reward investors. If interest rates ease, debt continues to decline, and confidence slowly returns, even modest share price recovery could meaningfully boost total returns. Combined with a generous dividend that arrives every quarter, the stock offers a compelling balance of income and potential upside. For investors seeking dependable cash flow from a business that underpins North America’s energy system, TC Energy looks increasingly attractive right now.

The post 1 Canadian Dividend Stock I’d Buy Right Now appeared first on The Motley Fool Canada.

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More reading

• 5 of the Best TSX Dividend Stocks to Buy Under $100
• The Absolute Best Canadian Stocks to Buy and Hold Forever in a TFSA
• 3 Canadian Stocks With Highly Sustainable Dividends
• 3 Top Dividend Stocks to Buy Today and Count On for Years
• TFSA Income: 2 Top Canadian Dividend Stocks to Buy Right Now With $7,000

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.