1.AltaGas
ALA-PK.TO (TSX)
AltaGas stands out as a notable player in the Canadian energy infrastructure sector, recognized for its strategic focus on utility-related operations. Despite currently yielding no dividends and experiencing slight returns of -0.99% over the past year and -1.15% over five years, it has garnered an A- rating from analysts, reflecting its potential for steady growth among Canadian utilities by 2026. Investors seeking exposure to a highly rated infrastructure company may find AltaGas an intriguing option for long-term consideration.
Pros:
- Diverse operations across North America
- Potential for growth in midstream segment
Cons:
- No current dividend yield
- Negative 1-year and 5-year returns
2.Canadian Utilities
CU.TO (TSX)
Canadian Utilities stands out as a top-rated choice for investors seeking yield and stability in the utility sector. With a robust dividend yield of 3.84%, this diversified company offers reliable income, making it a compelling option for those prioritizing defensiveness in their portfolios. Over the past year, it has delivered impressive returns of 31.23%, further solidifying its reputation as a strong performer in the market.
Pros:
- Strong defensive profile
- Attractive dividend yield
Cons:
- Lower growth potential compared to peers
- Market volatility risk
3.Emera
EMA-PC.TO (TSX)
Emera stands out as a Canadian utility renowned for its steady dividend income and regulated operations, often compared with peers like Fortis and Hydro One. With a dividend yield of 6.26%, it appeals to investors prioritizing reliable income, bolstered by a respectable one-year return of 7.40% and a five-year return of 6.86%. Additionally, institutions hold a significant portion of the company, enhancing its stability and governance.
Pros:
- Strong dividend yield
- Diverse energy generation sources
Cons:
- Moderate growth outlook
- Market volatility risk
4.Fortis
FTS.TO (TSX)
Fortis stands out as a prime choice for income-focused investors, boasting a robust portfolio of regulated electric and gas operations along with a long history of dividend payments. With a solid dividend yield of 3.37%, it has delivered impressive returns of 16.59% over the past year and 42.41% over the last five years. Analysts have maintained a generally positive outlook, with Barclays rating it as Overweight and RBC Capital giving it a Sector Perform rating, reflecting confidence in its stability and growth potential.
Pros:
- Strong dividend growth history
- Stable returns over time
Cons:
- Lower yield compared to high-yield stocks
- Market volatility risk
5.Hydro One
H.TO (TSX)
Emera stands out as a dependable Canadian utility, known for its regulated operations and consistent dividend income, making it a favorite alongside peers like Fortis and Hydro One. With a dividend yield of 2.27%, the company has delivered impressive returns of 16.84% over the past year and nearly 95% over the last five years, highlighting its stability and growth potential. Analysts regard Emera with a B- rating, reinforcing its status as a solid choice for investors seeking reliable income and long-term value.
Pros:
- Strong 5-year return
- Stable dividend income
Cons:
- Valuation concerns compared to peers
- Market volatility risk
6.Brookfield Infrastructure Partners
BIP.UN (TSX)
Brookfield Infrastructure Partners stands out as a utility-adjacent investment with a strong global asset base, making it a common choice among Canadian utility stock investors. With a noteworthy dividend yield of 4.55%, it has delivered impressive returns of 16.78% over the past year and 22.10% over five years. Analysts from Morgan Stanley have recently upgraded their rating to Overweight, while RBC Capital maintains an Outperform rating, indicating a generally positive outlook on this income-generating asset.
Pros:
- Strong global asset base
- Consistent dividend payments
Cons:
- Market volatility risk
- Lower rating compared to peers
Final Words
As you consider the best utility stocks this June 2026, remember to evaluate options like Fortis, which offers a solid dividend yield and consistent returns. Take time to compare these opportunities and conduct your own research to make informed investment decisions.
Frequently Asked Questions
Fortis is a core Canadian utility stock known for its large regulated electric and gas operations. It is particularly attractive for income-focused investors due to its long dividend record and stability.
Fortis has a dividend yield of approximately 3.37%, with dividends distributed quarterly. The next dividend payment is set at $0.6400.
Fortis has shown strong performance with a 1-year return of 16.59% and a 5-year return of 42.41%. This consistent growth highlights its reliability as a utility investment.
Investing in utility stocks can involve risks such as regulatory changes, interest rate fluctuations, and economic downturns that may impact demand for utility services. It's important to consider these factors when investing.
Fortis is recognized for its large market cap of $39.68B and a stable dividend history, making it a solid choice among Canadian utility stocks. Investors often compare it based on dividend yields, returns, and operational stability.
Fortis's market cap of $39.68B indicates its size and stability in the market, while a beta of 0.43 suggests that the stock is less volatile compared to the overall market. This can be appealing for conservative investors looking for steadier returns.
