The Canadian Dividend Stock I’d Trust if Markets Get Choppy

Choppy markets have a way of turning confident plans into sweaty palms. When headlines swing daily, investors should lean on the basics. Look for businesses with durable demand, steady cash flow, and a balance sheet that can handle higher rates. Dividends matter, but only if cash flow supports them after the company funds maintenance and growth spending. Most of all, pick something you can hold through a drawdown without turning every red day into a personal crisis.

TRP

TC Energy (TSX:TRP) sits in a sweet spot for that kind of environment. It runs one of North America’s largest natural gas infrastructure networks, plus a power and energy solutions business. It doesn’t need consumers to splurge or rely on trendy product cycles. It makes money by moving molecules under long-term arrangements, then it reinvests to expand capacity in corridors where demand keeps climbing.

Over the last year, the big story has been “simplify and execute.” TC Energy completed the spinoff of its liquids pipelines business, South Bow, earlier, and that move sharpened its focus on natural gas and power. It also kept leaning into in-corridor expansion rather than moonshot projects. After all, boring execution usually beats exciting promises when markets feel jumpy.

The news flow in late 2025 focused on funding and discipline. The dividend stock issued junior subordinated notes and used proceeds to redeem preferred shares and reduce indebtedness. It also highlighted steady project delivery and regulatory progress, including a settlement outcome at Columbia Gas that lifted rates versus pre-filed levels. Those updates may not sound glamorous, but speak directly to what income investors want: lower financing stress and fewer nasty surprises.

Earnings support

Earnings showed why the dividend stock can feel dependable when markets get moody. In the third quarter of 2025, TC Energy reported comparable earnings of $800 million, or $0.77 per share, and comparable earnings before interest, taxes, depreciation, and amortization (EBITDA) of $2.7 billion, up from $2.4 billion a year earlier. It also declared a quarterly dividend of $0.85 per share. That dividend gives investors a tangible return while they wait for sentiment to improve.

The quarter also revealed the key growth engine: natural gas volumes tied to structural demand. That kind of steady throughput helps explain why pipelines can hold up when markets wobble. People and industries still need power, and gas still fills a lot of that gap, especially as data centres and electrification lift baseline demand.

Looking into 2026, management’s outlook leans steady rather than flashy. It guided to a 2026 comparable EBITDA of $11.6 to $11.8 billion, which implies 6% to 8% year-over-year growth. It also extended a 5% to 7% annual comparable EBITDA growth outlook through 2028. That does not guarantee a smooth ride, but it does give long-term investors a clear runway that doesn’t depend on a single make-or-break bet.

Bottom line

At writing, the dividend stock trades at about 23 times earnings, so not a cheap stock but not expensive either. Meanwhile, you can bring in a solid passive-income stream from its 4.2% dividend yield, even with $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTTRP$81.9985$3.40$289.00Quarterly$6,969.15

TRP could be a buy for investors who want a steadier anchor when markets get choppy, but it won’t fit everyone. Risks still exist, including regulatory decisions, interest rate sensitivity, and the reality that energy politics can change the mood fast. If you want a dependable dividend backed by long-lived assets and a clearer growth plan than most, this one can earn a spot. If you crave excitement, it will probably feel too calm, even on the wild days.

The post The Canadian Dividend Stock I’d Trust if Markets Get Choppy appeared first on The Motley Fool Canada.

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More reading

• Best Stock to Buy Right Now: Enbridge or TC Energy?
• 5 TSX Dividend Champions Every Retiree Should Consider
• Here’s How Many Shares of TC Energy You Should Own to Get $1,020 in Dividends
• Take Full Advantage of Your TFSA With These 5 Dividend Stars
• Better Pipeline Stock: Enbridge vs. TC Energy?

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.