1 Rock-Solid TSX Dividend Stock to Buy Before RRSP Season Ends

Registered Retirement Savings Plan (RRSP) season can turn sensible investors into yield shoppers. You see a dividend, you picture retirement income, and suddenly the business fades into the background. Do not let that happen. In an RRSP, dividends can compound nicely, but only if the company can fund the payout and maintain its assets. Check payout ratios, debt, and the capital spending needed to keep service reliable. Then ask one question: Can you hold it through a dull year and still feel fine?

CU

Canadian Utilities (TSX:CU) often earns that “rock-solid” label because it sells something Canadians always consume. It sits inside the ATCO group and runs regulated electricity and natural gas utilities, plus other energy-related operations. This ties a large share of earnings to approved rates and long-lived infrastructure. CU is not a stock that needs a perfect consumer mood or a hot commodity price. It needs steady investment, safe operations, and reasonable decisions from regulators.

Over the last year, the headlines have leaned more toward “steady grind” than “big splash,” which is exactly why dividend investors like it. In October 2025, it declared a quarterly dividend of $0.4577 per share, or $1.83 annualized at the time. In January 2026, it raised that quarterly dividend to $0.4623 and extended its streak to 54 consecutive years of dividend increases.That shows how seriously management and the board treat the payout.

Regulation has also stayed front and centre. Canadian Utilities operates heavily in Alberta, where the Alberta Utilities Commission sets an allowed return on equity for utilities. The AUC set the 2025 return on equity at 9%. Management has flagged headwinds from a lower allowed return and the end of an efficiency mechanism. That is the core risk with a utility. The business can run smoothly, while the regulator still squeezes the math.

Earnings support

Even so, earnings have stayed steady enough to support the dividend story. In the third quarter of 2025, Canadian Utilities reported adjusted earnings of $108 million, or $0.40 per share, up from $102 million, or $0.38 per share, a year earlier. It also reported earnings attributable to shares of $166 million, or $0.61 per share, which can move around with one-time items and timing. For an RRSP investor, the cleaner message is simple: the underlying business kept inching forward.

The next question is what keeps that trend alive. The answer usually comes down to capital investment that expands and modernizes the regulated network. In its Q3 2025 update, the company said it invested $402 million in capital expenditures, with 95% directed to regulated utilities. Earlier 2025 disclosures also pointed to system upgrades and growth projects, including Yellowhead in natural gas transmission and CETO in electricity transmission, plus work tied to the Atlas Carbon Storage Hub in its energy growth segment.

Valuation, meanwhile, looks like what you would expect for a steady Canadian utility. The dividend stock trades at 22.6 times earnings with a 4.13% dividend yield at writing. That isn’t bargain-bin pricing, but it also is not priced like a stock that needs miracles. You are paying for resilience, not fireworks. If interest rates drift lower later in 2026, the market often treats utilities more kindly, but the business still needs supportive regulation to deliver. And right now, $7,000 can still bring in a lot.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCU$43.99159$1.84$292.56Quarterly$6,994.41

Bottom line

So, is it a rock-solid TSX dividend stock to buy before RRSP season ends? It could be, especially if you want dependable income with lower drama and you can accept slow-and-steady returns. The risks still matter. Regulators can tighten returns, and higher borrowing costs can pinch free cash flow. If you need fast upside, this will feel sleepy. If you want an RRSP anchor that can quietly compound while you focus on life, Canadian Utilities deserves a serious look.

The post 1 Rock-Solid TSX Dividend Stock to Buy Before RRSP Season Ends appeared first on The Motley Fool Canada.

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

Before you buy stock in Canadian Utilities Limited, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Canadian Utilities Limited 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 $21,827.88!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 102%* – a market-crushing outperformance compared to 81%* 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 January 15th, 2026

More reading

• 4 Dividend Stocks to Double Up on Right Now
• The Best Canadian Stocks to Buy and Hold Forever in a TFSA
• 3 Strong Dividend Stocks to Brace for Trump Tariff Turbulence
• How Does Fortis Stack Up Against Canadian Utilities Stock?
• Take Full Advantage of Your TFSA With These 5 Dividend Stars

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.