The Ultimate Dividend Stock to Buy With $1,000 Right Now

Utility stocks are regarded as some of the best and most reliable income generators on the market. There are several reasons for that view, making the typical utility a key dividend stock to buy and hold for decades.

For investors searching for a dividend stock to buy and hold, utilities are some of the best long-term options to start with.

In fact, most investors can start a position in a utility with as little as $1,000. But what is that dividend stock to buy right now?

Canadian Utilities is the top dividend stock to buy today

That stock to buy is Canadian Utilities (TSX:CU). Canadian Utilities is one of the largest utility stocks in Canada. Apart from its size, the company holds the longest dividend-growth streak in Canada with over 53 consecutive years of annual increases.

That makes Canadian Utilities one of just two Dividend Kings in Canada. More importantly, it speaks to the company’s reputation as a stable long-term holding that has held up through different market environments.

The main factor behind that stability can be traced back to Canadian Utilities’ business model. As a regulated utility, Canadian Utilities generates the bulk of its revenue from electricity and natural gas distribution and transmission at rates set by regulators.

Those rates are backed by long-term contracts that span decades. This means that Canadian Utilities continues to generate predictable cash flows irrespective of how the market fares. And because utilities are necessity-based services, consumers can’t simply cut back to trade down to an alternative as they would with retail.

The regulated and predictable structure of Canadian Utilities means that the company can plan for growth, and pay out a stable, growing dividend. This makes it the ideal dividend stock to buy for those investors seeking something stable.

A closer look at Canadian Utilities’ dividend strength

Canadian Utilities’ dividend is the real reason investors continue to flock back to the stock. As of the time of writing, the utility offers a quarterly dividend that pays out a yield of 3.8%.

Prospective investors should also note that Canadian Utilities isn’t just about dividends. The company continues to put capital into its regulated infrastructure, steadily building the assets that drive future earnings.

For investors looking to invest $1,000, that translates into a starter position that will generate just under one additional share each year from reinvestments alone.

If that initial investment becomes an annual habit, that Canadian Utilities position can quickly grow into a long-term income producer. Over a longer period, this compounding effect can significantly boost total returns.

For these reasons, Canadian Utilities is a top dividend stock for investors to consider owning right now.

Why Canadian Utilities fits long‑term dividend portfolios

Canadian Utilities is well‑suited for those investors seeking a dividend stock to buy that can provide long-term income and capital preservation.

The stock’s defensive appeal helps cushion portfolios during market downturns, while the stable, regulated revenue stream provides a predictable income that few companies can match.

Canadian Utilities won’t win awards for high growth or a high yield. What it will provide is stable growth and a well-covered dividend.

That fact alone makes this a dividend stock to buy for any well-diversified portfolio.

The post The Ultimate Dividend Stock to Buy With $1,000 Right Now appeared first on The Motley Fool Canada.

Should you invest $1,000 in Canadian Utilities right now?

Before you buy stock in Canadian Utilities, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Canadian Utilities wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have over $18,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 94%* – a market-crushing outperformance compared to 85%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of April 20th, 2026

More reading

• 3 Dividend Stocks That Look Worth Adding More Of
• 5 TSX Stocks to Buy for a Calm, Boring, Winning Portfolio
• 5 TSX Dividend Stocks With Solid Yields Built for Steady Cash Flow in Any Market
• Canadians: Here’s How Much You Need in Your TFSA to Retire
• 2 Canadian Stocks That Offer Both Growth and Dividends in One Portfolio

Fool contributor Demetris Afxentiou 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.