3 Canadian Utilities Stocks Poised to Win Big in 2026

When it comes to finding reliable stocks that can help protect your capital and shore up your portfolio, there’s no question that utility stocks are among the best of the best.

Investing for the long haul is all about finding high-quality companies that can grow and expand their operations and profitability. And while companies that can grow faster are, of course, typically more compelling, it’s far more important to find ones that can grow consistently.

That’s exactly why Canadian utility stocks stand out right now as some of the most dependable investments to buy in 2026 and hold for years.

Utilities are some of the best Canadian stocks to own because they are incredibly defensive. They provide essential services such as electricity, natural gas, and water, which consumers and businesses need access to every day.

Furthermore, since the industry is heavily regulated by the government, these companies often have highly predictable cash flows, which makes them even more reliable and the perfect dividend growth stocks to buy and hold for the long haul.

And with interest rates expected to continue to decline in 2026, many of the best Canadian utilities stocks have the potential to continue rallying higher.

So, if you’re looking for top Canadian utilities stocks to add to your portfolio before they get any more expensive, here are three of the best to consider right now.

Two of the best dividend growth stocks on the TSX

When it comes to picking a reliable dividend growth stock in the utilities sector that you can buy and hold with confidence for years, there’s no question that Fortis (TSX:FTS) and Canadian Utilities (TSX:CU) are two of the best.

In fact, Fortis and Canadian Utilities have the two longest dividend growth streaks in Canada and are the only two stocks that have increased their dividends every year for more than half a century, which goes to show just how reliable they are.

Fortis is one of the most popular names in Canada, as one of the most defensive and consistent utilities on the TSX.

It owns regulated electric and gas utilities diversified across Canada, the U.S., and the Caribbean, which only helps Fortis to mitigate even more risk.

Because it’s so popular, Fortis tends to trade at a higher premium compared to many of its Canadian utilities stock peers. However, it also tends to offer more dividend growth potential. For example, through 2029, Fortis expects to increase its dividend by 4% to 6% annually.

Canadian Utilities, on the other hand, has many similarities to Fortis. For example, it also owns regulated electric and natural gas distribution assets primarily in Alberta. However, it also has exposure to power generation and other infrastructure.

The stock does offer a higher yield than Fortis. For example, Canadian Utilities’ forward yield is currently sitting at 3.9% compared to Fortis’ current yield of 3.3%. However, in recent years, the dividend increases from Canadian Utilities have been closer to 1% annually.

So, if you prefer a slightly higher yield, Canadian Utilities might be the stock for you. However, if you prefer reliable and consistent dividend growth, Fortis is the no-brainer pick.

A top Canadian stock combining regulated stability with strong growth drivers

In addition to Fortis and Canadian Utilities, another high-quality Canadian stock to consider for 2026 and beyond is AltaGas (TSX:ALA).

AltaGas is one of the best stocks to buy because it combines reliable regulated utility businesses with midstream energy assets that give it attractive long-term growth potential.

So in addition to the regulated natural gas utilities that it operates in Alberta, British Columbia, and the U.S., it owns midstream assets like pipelines and storage.

This is an ideal combination because the regulated utility business provides steady, predictable cash flows with low risk, while the midstream side offers higher growth potential tied to energy demand.

That reliability, combined with its growth potential, has allowed AltaGas to increase its dividend consistently once again, after it focused on selling off non-core assets and significantly improving the strength of its balance in recent years.

So, with AltaGas offering a dividend yield of roughly 3% today, and a ton of long-term prospects for growth in its midstream energy segment, there’s no question it’s one of the best utility stocks to buy now.

The post 3 Canadian Utilities Stocks Poised to Win Big in 2026 appeared first on The Motley Fool Canada.

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More reading

• The Safe-Haven Shortlist: TSX Picks to Anchor Your 2026 Portfolio
• This Is the Average TFSA Balance for Canadians at Age 60
• A Dividend Giant I’d Buy Over Telus Stock Right Now
• Canadian Investors: How You’re Paying Taxes to the IRS
• Want Years of Passive Income? 3 Canadian Dividend Stocks to Buy Now

Fool contributor Daniel Da Costa has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.