1 Unbelievable Canadian Dividend Stock to Buy and Hold for Years

Seeking a Canadian dividend stock that looks outstanding even when share prices are up? That’s the case for this dividend stock, and yet the real win comes from durability. You want regulated or contract-based revenue, a balance sheet that can handle higher interest costs, and a management team that keeps investing in growth projects without gambling. If the dividend stock can raise earnings slowly and keep the dividend boring, a temporary price wobble can turn into a long, happy hold.

CU

Canadian Utilities (TSX:CU) fits that quietly essential profile. It sits inside the ATCO ecosystem and focuses on energy infrastructure that people use every day, including electricity transmission and distribution, natural gas distribution and transmission, and international electricity operations. It also has exposure to Australia through ATCO Australia and to growth projects through ATCO EnPower. That mix spreads risk across several regulated platforms instead of leaning on one single line of business.

The dividend stock’s recent trading range shows how the market treats it. It rarely feels dramatic, but it still moves when rates and bond yields shift. Over the last year, shares went from a fall to a rise of 24%. That kind of gentle pullback often gives income investors a second chance. All while trading at just 22 times earnings at writing with a 4.3% dividend yield.

Zoom out a little, and the dividend stock’s appeal stays consistent. It does not usually lead a bull market. It aims to be the dividend stock you forget you own, until the dividend hits your account again. The market tends to reward it when investors want stability, and it tends to cool off when investors chase faster growth or worry about financing costs for utilities. That rhythm can feel dull, but dull can work very well when the goal is holding for years.

Into earnings

The latest earnings update supported the steady engine idea. 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 IFRS earnings attributable to equity owners of $100 million, or $0.29 per share, which shows how reported earnings can swing while the underlying regulated earnings keep chugging along.

It also kept spending on the stuff that drives future earnings. Canadian Utilities invested $402 million of capital expenditures in Q3 2025, and it directed about 95% of that spending to its regulated utilities in ATCO Energy Systems and ATCO Australia. Regulated capital expenditure often translates into a larger rate base, which often translates into higher allowed earnings over time. It’s not flashy, but it’s the utility playbook for long-term compounding.

The outlook looks practical, not pie-in-the-sky. Canadian Utilities highlighted major regulated infrastructure projects like the Yellowhead Pipeline Project, which it described as an expected $2.9 billion project with a construction start target in 2026, subject to approvals. It also noted progress on the Central East Transfer-Out project. This it expects to energize by June 2026, with an approximate $255 million expected spend.

Bottom line

That’s why Canadian Utilities can be an outstanding Canadian dividend stock to buy and hold when the share price slips. It earns most of its money in regulated businesses, it keeps funding a pipeline of infrastructure growth, and it pays a dividend that tends to show up like clockwork. Right now, here’s how much you could earn even from $7,000.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCU$42.91163$1.83$298.29Quarterly$6,994.33

You won’t get a thrilling story every quarter, but that’s the point. If you want a long-term holding that aims to reward patience with steady income and slow compounding, CU belongs on the short list.

The post 1 Unbelievable Canadian Dividend Stock to Buy and Hold for Years appeared first on The Motley Fool Canada.

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More reading

• If I Could Only Buy 2 Dividend Stocks in 2026, These Would Be My Picks
• 3 Canadian Dividend Stocks to Consider Adding to Your TFSA in 2026
• Got $2,000? 4 Dividend Stocks to Buy and Hold Forever
• 2 Rock-Solid Canadian Dividend Stocks for Steady Passive Income
• The “Sleep-Well” TFSA Portfolio for 2026: 3 Blue-Chip Stocks to Buy in January

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.