2 Canadian Dividend Giants That Belong in Any Portfolio

Dividend giants by themselves belong in practically any portfolio. These dividend stocks provide steady, dependable income while also offering long-term growth through rising payouts and solid business fundamentals. The companies tend to be industry leaders with strong balance sheets, resilient earnings, and proven track records of navigating market cycles, which helps stabilize your portfolio even during downturns.

As dividends compound over time, especially when reinvested, they turn into a powerful engine for wealth creation. Therefore, dividend giants become essential anchors for both income seekers and long-term growth investors alike. So, let’s look at two that can be popped into any (and every) portfolio on the TSX today.

TransAlta

TransAlta (TSX:TA) is a large, diversified Canadian power producer that generates electricity across multiple sources from hydro, wind, natural gas, solar and other assets in Canada, the U.S., and Australia. After decades as a coal-heavy utility, TransAlta has repositioned itself as a modern energy company focused on clean power and flexible generation, with a fleet designed to adapt as demand shifts.

In its third quarter of 2025, TransAlta reported adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $238 million and operating cash flow of $251 million, offering solid underlying cash flows despite some headwinds. On the downside, free cash flow came in at $105 million (or $0.35 per share), down from $131 million the prior year, and the dividend stock recorded a net loss attributable to common shareholders of $62 million. That volatility reflects fluctuating power prices and commodity-related exposure, which can have a short-term impact.

That said, TransAlta stands out because it combines diversified, long-lived power-generation assets with a commitment to transition toward cleaner energy. This makes its cash flows more resilient and future-proof. Its mix of hydro, renewables, natural gas, and energy storage gives it flexibility and stability across economic and regulatory cycles. While its common-share dividend yield may be modest at 1.3%, the dividend stock also offers a range of preferred-share series with fixed, often higher yields, providing income choices for different investor needs.

BMO

Bank of Montreal (TSX:BMO) is one of Canada’s oldest and largest banks, offering a full suite of financial services including personal and commercial banking, wealth management, and capital markets. This includes both domestically, across the U.S. and internationally. Founded in 1817, it has built a diversified business model that balances retail banking, lending, investment banking, and asset management. Its wide range of services and strong institutional presence make BMO a cornerstone financial institution in Canada, deeply embedded in the economy and everyday financial life for millions.

In its third quarter of fiscal 2025, BMO reported a strong performance. Adjusted earnings per share hit $3.23, up 22% year over year, and net income reached approximately $2.33 billion, marking one of the highest quarterly profits in its history. The bank benefited from increased net interest income and solid growth across its business segments — particularly the U.S. Personal & Commercial Banking, Wealth & Asset Management, and Capital Markets segments. It also boasted a lower provision for credit losses, which together drove robust bottom-line growth and renewed investor confidence.

BMO deserves a place in every long-term portfolio now as it combines a century-plus legacy of financial stability, diversified banking operations across North America, and a resilient business model that withstands economic cycles. Its diversified earnings streams help smooth volatility, as retail banking offsets swings in capital markets, U.S. operations add geographical diversification, and asset-management and wealth businesses add non-interest revenue. That stability feeds into a reliable dividend, underpinned by strong regulatory capital ratios and consistent profitability.

Bottom line

For a long-term investor, TransAlta’s diversified energy footprint, predictable generation capacity, and gradual pivot to renewables make it a foundational energy holding. One that can weather cycles and deliver steady returns over decades. Meanwhile, for those seeking decades of predictable income and modest growth, BMO offers a proven track record, broad exposure, and the kind of financial strength that makes it a bedrock holding for Canadian portfolios. Together, here’s what you could earn investing $7,000 in each dividend stock.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTTA$19.95350$0.26$91.00Quarterly$6,982.50BMO$174.1240$6.52$260.80Quarterly$6,964.80

So, if you’re seeking Canadian dividend stocks that any portfolio can handle, these are the two to consider on the TSX today.

The post 2 Canadian Dividend Giants That Belong in Any Portfolio appeared first on The Motley Fool Canada.

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More reading

• Bank of Montreal vs. RBC: Which Canadian Bank Stock is the Better Buy?
• Canadian Bank Stocks: Buy, Sell, or Hold?
• 2 TSX Giants to Buy for Decades of Growth and Dividends
• 1.27% Dividend Yield! This Profit Generator Never Quits
• 3 Canadian Bank Stocks Offering Decades (and Decades) of Dividends

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.