2 Canadian Dividend Stocks That Could Reward Patient Investors More Than A REIT

By Amy Legate-Wolfe at The Motley Fool Canada

A stock doesn’t need to be a real estate investment trust (REIT) to pay like an income machine. Fortis (TSX:FTS) and TC Energy (TSX:TRP) are proof of that. One is a regulated utility, the other is an energy infrastructure giant. Yet both can serve the same purpose many investors want from REITs: steady cash flow, dependable dividends, and patient-friendly returns.

FTS

For investors looking beyond the next market swing, Fortis stock may be one of the cleanest long-term income stories on the TSX. The company owns regulated electric and gas utilities across Canada, the United States, and the Caribbean. That gives Fortis stock a stable base, even when the economy feels shaky.

The latest numbers back up that steady story. Fortis reported first-quarter 2026 net earnings of $501 million, or $0.99 per share. The company also invested $1.4 billion in its utility systems during the quarter, equal to about one quarter of its 2026 capital plan. That spending supports growth because regulated utilities often invest in their systems and then earn approved returns on those assets.

The bigger draw sits in its long runway. Fortis expects its rate base to grow by an average of about 7% per year through 2030. It also targets annual dividend growth of 4% to 6% through 2030, with the yield now at 3.2%. For patient investors, that combination can do a lot of heavy lifting, especially when dividend growth comes from a business people rely on every day.

TRP

TC Energy brings more drama, but also more upside. The stock still sits well below its old highs after years of debt worries, project delays, cost overruns, and a major corporate reset. Yet the company now looks more focused after spinning off its oil pipeline assets into South Bow. Today, TC Energy centres on natural gas pipelines, power, and energy demand.

That focus looks timely. Data centres, artificial intelligence (AI), liquefied natural gas exports, and industrial demand all need reliable power. Natural gas still plays a major role in meeting that demand. TC Energy’s network sits right in the middle of that shift.

The company’s first-quarter 2026 results showed real momentum. Comparable earnings before interest, taxes, depreciation and amortization (EBITDA) rose 14% year over year to $3.1 billion, while comparable earnings came in at $1 billion, or $0.99 per share. TC Energy also declared a quarterly dividend of $0.8775 per share, equal to $3.51 annually, yielding 3.6% at writing.

The most interesting catalyst may be the new US$1.5 billion Appalachia Supply Project on its Columbia Gas system. The project should move up to 0.8 billion cubic feet of natural gas per day and start service in 2030. Management also highlighted record delivery levels across several systems, which shows how strong demand has become. That gives the company a clearer growth path than many investors may assume.

Bottom line

Fortis stock and TC Energy aren’t REITs, but they may appeal to the same investor mindset. Fortis stock offers stability and dividend growth. TC Energy offers recovery potential and energy infrastructure upside. Both can offer immense income with an even $7,000 investment.

Investors who buy today and hold through the noise could collect income while waiting for the market to recognize the value already being built. For income investors, that mix can feel boring in the best possible way over time.

The post 2 Canadian Dividend Stocks That Could Reward Patient Investors More Than A REIT appeared first on The Motley Fool Canada.

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Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Fortis. The Motley Fool has a disclosure policy.

2026