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2 Gargantuan Dividend Giants That Belong in Every Portfolio

Alex Smith

Alex Smith

1 week ago

6 min read 👁 2 views
2 Gargantuan Dividend Giants That Belong in Every Portfolio

A gargantuan dividend giant earns its place in every portfolio. It gives investors something few investments can: reliable income that feels like a paycheque, stability that helps you sleep at night, and long-term growth that quietly builds wealth in the background.

These dividend stocks tend to dominate essential industries, run cash-rich operations, and raise payouts year after year, even when markets wobble. You don’t have to babysit them or time the market. It’s the kind of stock that makes you feel like you’re finally investing with the economy instead of trying to outsmart it. That sense of effortless compounding is why every portfolio needs at least one. But today we’re looking at two.

CU

Canadian Utilities (TSX:CU) sits quietly in the background of the TSX, but it’s one of the market’s most reliable income machines. The dividend stock operates regulated electricity and natural gas infrastructure across Alberta, the Northwest Territories, and international markets. This gives it predictable, long-duration cash flow that doesn’t swing wildly with the economy. CU grows steadily, earns stable returns on regulated assets, and passes that consistency back to shareholders through one of the longest dividend-growth streaks in the entire country.

Recent earnings reinforced that reputation for stability. CU reported higher regulated earnings, supported by continued investment in its utility rate base and disciplined cost management. Cash flow improved, and the dividend stock maintained solid profitability, even as many sectors faced rising expenses and margin pressure. Capital spending remained focused on low-risk, regulated infrastructure projects. This sets the stage for continued rate-base growth and predictable returns. And importantly for income investors, CU reaffirmed its long-term guidance and signaled confidence in its balance sheet and future cash generation.

CU earns the title of a gargantuan dividend giant because it does what few companies in North America can claim. It raised its dividend every single year for more than five decades. That level of consistency only exists when a company has deep moats, recurring revenue, strong regulatory relationships, and a culture built around shareholder returns. Right now, investors can grab this dividend giant with a 4.4% yield at writing.

GSY

Elsewhere, goeasy (TSX:GSY) has grown into one of Canada’s most impressive financial success stories. The dividend stock doubled and redoubled in size as it expanded from a small subprime lender into a diversified provider of consumer loans, point-of-sale financing, and leasing services. Its business thrives in both strong and weak economies as credit demand stays resilient. Plus, goeasy’s underwriting discipline has consistently kept loan losses in check.

Recent earnings showcased that resilience. goeasy reported higher loan originations, expanding its portfolio while keeping credit performance within expected ranges, even as interest rates stayed elevated. Revenue and adjusted earnings both grew year over year, driven by rising customer demand, disciplined pricing, and stronger efficiency across its lending platform. Management again raised full-year guidance, signaling confidence in both near-term credit trends and long-term growth potential. The dividend stock also continued to strengthen its balance sheet and maintain ample liquidity, reinforcing that it can keep growing without stretching itself financially.

GSY qualifies as a gargantuan dividend giant as it offers something extremely rare: high growth and meaningful income from the same stock. It raised its dividend for years at a double-digit pace, supported by a business that consistently produces more earnings, more customers, and more scale. Even after its massive long-term share-price gains, goeasy still trades at a valuation that reflects caution rather than the strength of its fundamentals. This gives long-term investors a chance to own a proven compounder that rewards patience. And right now investors can pick it up with a dividend yield at 4.7%.

Bottom line

Every portfolio needs some dividend stocks on hand. Yet if you’re looking for stable options that can survive decades, while shares and payouts rise, then goeasy and CU belong in your portfolio. Even now, here’s what $7,000 invested in each dividend stock can bring in.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL ANNUAL PAYOUTFREQUENCYTOTAL INVESTMENTCU$41.16170$1.83$311.10Quarterly$6,997.20GSY$121.7357$5.84$332.88Quarterly$6,938.61

Not all dividend stocks are gargantuan options, but if you’re looking for two set-it-and-forget-it stocks, these are the top choices on the TSX today.

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

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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.

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