Best Dividend Stocks this January 2026 in Canada

Power Corporation of Canada (POW.TO) stands out as a diversified financial holding company, showcasing impressive double-digit income growth alongside a solid dividend yield of 3.36%. With a remarkable one-year return of 73.82% and a five-year return of 144.07%, it positions itself as an attractive option for investors seeking reliable income and growth potential. However, investors should note the mixed signals from analysts, indicating a buy signal from the long-term moving average but a sell signal in the short term.

POW has mixed signals; it shows a sell signal from the short-term moving average but a buy signal from the long-term average.

Wall Street analysts project a 1-year price target for POW at an average of 73.31 CAD, with a range between 68.68 CAD and 79.8 CAD.

The fair value of Power Corporation of Canada (POW) is estimated at 135.12 CAD, indicating an upside potential of 86.6% from its current market price of 72.42 CAD.

The Bank of Nova Scotia stands out as a top pick for dividend investors, boasting a robust yield of 4.37%. With impressive returns of 38.05% over the past year and 45.99% over five years, it's an attractive option for those seeking both reliable income and capital appreciation. Analysts maintain a neutral consensus, suggesting a positive outlook for the stock, which may continue to outperform in the near term.

BNS has a positive forecast as its short-term average is above the long-term average, indicating a buy signal. However, it may face resistance around $73.20.

Analysts have a neutral consensus on BNS with a median price target of $71.37, suggesting a potential downside of 4.5% from its current price of $74.72.

SmartCentres REIT (SRU.UN) stands out as a highly rated investment option, boasting a dividend yield of 7.18% and a solid investment-grade status. This REIT is particularly appealing for income seekers, with 25% of its rental income sourced from Walmart, enhancing its stability and recession-resilience. With impressive 1-year and 5-year returns of 11.40% and 15.69%, respectively, SRU.UN is a strong choice for those looking to secure reliable income streams.

The average target price for SmartCentres REIT (SRU.UN) is C$28.67, with a forecast range of C$27.00 to C$30.00, indicating an expected increase of 8.19% from its current price of C$26.50.

SmartCentres REIT is considered a safe dividend payer, with 25% of its rental income coming from Walmart, which is resilient during economic downturns.

SmartCentres REIT pays an annual dividend of C$1.85 per share, yielding 7.01%, with monthly payments and the next ex-dividend date on November 28, 2025.

Fortis (FTS.TO) stands out as a robust utility investment, boasting a 52-year track record of dividend growth and a generous yield of 3.50%. With a long-term earnings growth rate of 4.29%, it has consistently met or exceeded earnings expectations, making it an attractive choice for passive income seekers. Though currently facing short-term market sentiment challenges, its oversold status presents a valuable opportunity for long-term investors looking for reliable income.

Fortis has a long-term earnings growth rate of 4.29% and has surpassed earnings estimates in three of the last four quarters, indicating potential for growth.

Fortis (TSX:FTS) is considered a Dividend King, currently trading in oversold territory, which may present a buying opportunity for long-term investors.

FTS refers to Fortis Inc., a Canadian utility company listed on the TSX.

The average 12-month price target for Fortis is C$74.00, with estimates ranging from C$68.00 to C$79.00, reflecting a potential increase from its current price of C$71.25.

Manulife Financial (MFC.TO) stands out with a solid dividend yield of 3.61%, reflecting its commitment to rewarding investors through consistent payouts. The company has demonstrated remarkable growth, achieving a 21.19% return over the past year and an impressive 113.59% over the last five years, driven by robust new business growth in Asia and the U.S. Analysts maintain a favorable outlook, with RBC Capital consistently rating it as an "Outperform," supported by its disciplined expense control and strong insurance margins.

Manulife's stock performance is driven by strong new business growth in Asia and the U.S., improved insurance margins, and effective expense management, resulting in a core return on equity of 18.1%.

MFC shows potential for market outperformance, but it currently has a Growth Score of D and a Momentum Score of F, indicating it may not be suitable for momentum investors.

As of November 17, 2025, Manulife's stock trend appears bullish, with the 20-day moving average above the 60-day, although it may face resistance around $35.79 and $36.94.

TC Energy Corporation (TRP) stands out as a stable investment in energy infrastructure, with consistent quarterly dividends around C$3.40. Boasting a strong dividend yield of 4.50%, TRP has delivered impressive returns of 12.94% over the past year and 38.51% over five years, positioning it for growth as we approach 2026. Analysts regard it as a Moderate Buy, with a favorable price target suggesting a potential 13.01% increase from its current value of C$74.17.

TRP refers to TC Energy Corporation.

Analysts have a consensus rating of Moderate Buy for TC Energy, with an average price target indicating a potential 13.01% increase from the current price of C$74.17.

TC Energy's main competitors include Pembina Pipeline, Emera, Brookfield Renewable, and Algonquin Power & Utilities, among others.

As of December 26, 2025, TC Energy's P/E ratio is 23.99, which is a 47.36% increase from its 12-month average of 16.28.

Canadian Natural Resources (CNQ.TO) stands out as a strong contender in the energy sector, boasting a noteworthy dividend yield of 5.17% and a history of 23 consecutive years of dividend increases. Although the stock has faced a slight decline of 1.41% over the past year, it has impressively surged by 168.32% over the last five years, reflecting robust revenue growth and a solid performance in earnings per share, averaging a 16.79% increase annually.

CNQ has shown strong historical growth, with an average Earnings Per Share (EPS) increase of 16.79% per year and a revenue growth of 8.06% in the past year.

In the past 12 months, CNQ has underperformed the S&P TSX Composite Index, with a return of -6% compared to the index's +29% growth.

CNQ's low valuation is attributed to its long-life, low-decline oil sands operations, which feature predictable production profiles and some of the industry's lowest operating costs.