Three Canadian Dividend Stocks That Can Grow Your Passive Income Over Time

Best dividend stocks to invest

If you’re focused on building long-term passive income, picking dividend stocks that not only pay well but also grow their payouts over time can significantly boost your total returns. Here are three Canadian names that fit that profile — solid businesses with track records of increasing dividends and the potential to continue doing so.

Three Canadian Dividend Stocks That Can Grow Your Passive Income Over Time

1) Fortis Inc. (TSX: FTS)
Fortis is a regulated utility operating electricity and gas networks across North America and the Caribbean. Because utility rates are approved by regulators and tied to infrastructure spending, Fortis enjoys stable, predictable cash flows — a key ingredient for growing dividends over time. Its long history of annual dividend increases has made it a favorite among income investors. With utilities remaining essential and capital investment continuing, Fortis’s payout is supported by predictable earnings and a strong balance sheet.

2) Bank of Nova Scotia (TSX: BNS)
Among Canada’s big banks, Scotiabank stands out for its diversified global footprint, especially in Latin America and Caribbean markets. That diversification can smooth earnings cycles when Canadian markets are flat. The bank has a long history of paying and raising dividends, and its strong capital ratios and consistent profitability give it room to sustain those payouts. For investors seeking growing dividend income combined with exposure to financial services, Scotiabank offers a compelling mix of yield and long-term growth potential.

3) Canadian National Railway (TSX: CNR)
While not traditionally thought of as a pure “dividend stock,” Canadian National earns high marks among income-oriented investors thanks to its rapid cash flow growth and disciplined capital allocation. Its extensive rail network moves freight across North America, giving it pricing power and sustainable earnings growth. CN has been increasing its dividend consistently, and its strong free cash flow supports both dividend growth and share repurchases. Over time, this combination can provide rising passive income along with capital appreciation.

Also Read: Long term investing in Canada

Why Dividend Growth Matters
Stocks that increase their dividends over time can dramatically improve your income stream. Instead of collecting a static payout, your dividend income can grow year after year, helping you keep pace with inflation and potentially outpace it. When held in tax-advantaged accounts like a TFSA or RRSP, this growth compounds even more efficiently.

Also Read: Dividend paying stocks Canada

These three Canadian dividend names — Fortis, Bank of Nova Scotia, and Canadian National Railway — offer a mix of defensive stability, diversified earnings and dividend growth potential, making them strong candidates for a passive income portfolio aimed at long-term growth.

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