Best High Yield Dividend Stocks this January 2026 in Canada

Enbridge stands out as a diversified energy infrastructure company with regulated assets, currently boasting a robust dividend yield of 7.43%. With a strong track record of dividend growth and an analyst rating of B+, it positions itself as an attractive option for investors seeking reliable income. Looking ahead, Enbridge plans to allocate around $10 billion for growth capital in 2026, indicating a commitment to future expansion.

Enbridge plans to invest approximately $10 billion in growth capital by 2026, while maintaining a strong balance sheet with a projected debt-to-EBITDA ratio within the target range of 4.5-5.0x.

Enbridge appears to be overvalued with a P/E ratio of 24.6x, significantly higher than the Canadian oil and gas industry average of 14.5x and its own fair ratio of 20.8x.

The Bank of Montreal stands out with its 197 consecutive years of dividend payments and a robust average growth rate of 5.7% over the last 15 years. Currently offering a dividend yield of 3.53%, the stock has delivered impressive returns of 33.33% over the past year and an exceptional 86.65% over five years, making it an attractive option for investors seeking reliable income and long-term growth potential. Despite receiving a B- rating from analysts, BMO is considered undervalued by 29.1%, suggesting a promising opportunity for those looking to enhance their investment portfolios.

BMO stock is currently undervalued by 29.1% according to our Excess Returns analysis.

RBC is preferred for stability and reliability, while BMO offers more long-term growth potential; both are strong investments.

As of January 2, 2026, BMO's dividend yield is 3.54%, with a TTM dividend payout of $4.68.

Alimentation Couche-Tard is poised for growth, with expectations of a dividend increase of 10% or more by 2026. Despite a slight dip of 0.05% in the past year, the company has delivered an impressive 81.89% return over the last five years, indicating strong long-term potential. Analysts rate the stock a solid B+, with a target price suggesting an upside of approximately 14.74% from its current trading level of around C$74.08.

ATD-A is trading near the upper end of its 52-week range but is slightly lagging behind the S&P 500, which is near a new high.

With a target price of C$85.00, ATD stock has a potential upside of about 14.74% from its current price of C$74.08, supported by multiple 'buy' ratings from analysts.

The average 12-month price target for ATD is C$86.00, with estimates ranging from C$79.00 to C$91.00 based on recent analyst reports.

Brookfield Corporation stands out as a diversified investment firm with a promising growth trajectory, anticipated to boost its dividend by 10% or more by 2026. With a current dividend yield of 0.54%, the company has delivered impressive returns of 26.13% over the past year and an astounding 150.64% over the last five years. Despite a C- rating, analyst endorsements from TD Securities, CIBC, and RBC Capital suggest potential for steady performance, making Brookfield an appealing choice for income-focused investors.

BN has a Growth Score of C, suggesting potential underperformance, but its Momentum Score of B indicates it may appeal to momentum investors.

Brookfield Corporation (BN.TO) is a Canada-based global investment firm focused on long-term wealth creation for institutions and individuals.

Analysts project a price target of $65.43 for BN by 2026, indicating no expected increase from its current price, but forecasts may change based on market conditions.

BN pays a dividend of $0.24 per share, resulting in an annual yield of 0.51%, which is below both the US industry average of 7.73% and the market average of 3.21%.

Fortis Inc. (TSX:FTS), a recognized Dividend King with 51 years of consecutive dividend growth, offers an attractive 3.50% yield along with a robust 21.60% return over the past year. This utility company is well-positioned with rate-regulated assets that ensure stable cash flows, appealing to long-term investors seeking reliable income. Despite recent market sentiment pushing the stock into oversold territory, it has shown resilience by surpassing earnings estimates in three of the last four quarters, highlighting its strong fundamentals.

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

Fortis is recognized as a Dividend King and is currently considered oversold, presenting a good opportunity for long-term investors.

FTS refers to Fortis Inc., a utility company listed on the Toronto Stock Exchange.

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

TC Energy Corporation (TRP) stands out as a reliable investment, boasting 25 consecutive years of dividend increases, which underscores its commitment to delivering consistent payouts. With a current dividend yield of approximately 4.50%, investors can expect strong income potential, complemented by a robust 1-year return of 12.94% and a solid 5-year return of 38.51%. Analysts maintain a positive outlook with a consensus rating of Moderate Buy, further reinforced by price targets suggesting a potential increase of 13.01% from its current value.

TRP refers to TC Energy Corporation.

TC Energy has a Moderate Buy consensus from analysts, with an average price target suggesting a 13.01% increase from its 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, up 47.36% from its 12-month average of 16.28.

Canadian Natural Resources stands out as a strong investment option for those seeking reliable income, boasting a 5.17% dividend yield and a remarkable track record of 25 consecutive years of dividend increases. Analysts maintain a positive outlook, with ratings such as "Buy" from Goldman Sachs and "Outperform" from RBC Capital, indicating confidence in the company's future performance. Although CNQ has seen a slight decline of 1.41% over the past year, its impressive 5-year return of 168.32% highlights its robust growth potential and financial health.

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% over the past year.

In the last 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.

The Vanguard FTSE Canadian High Dividend Yield Index ETF is an attractive option for investors seeking reliable income and long-term capital growth, boasting a dividend yield of 3.54%. With impressive returns of 26.97% over the past year and 81.91% over five years, this ETF employs a passively managed strategy to provide exposure to a diverse range of Canadian large-, mid-, and small-cap stocks. Its low management expense ratio of 0.22% further enhances its appeal for those looking to maximize their investment efficiency.

VDY is a strong choice for long-term investors seeking reliable monthly income and tax-efficient cash flow, as it supports wealth accumulation over time.

The average 12-month price target for VDY is C$65.81, with a high of C$75.55 and a low of C$59.52, indicating a potential 5.28% increase from its current price of C$62.51.

VDY uses a passively managed, full-replicated index strategy to invest in a diversified portfolio of Canadian large-, mid-, and small-cap stocks.

VDY is tax-efficient in Canada, as eligible dividends receive a tax credit, capital gains are taxed at half the marginal rate, and return of capital is not taxed until sold.