Best Dividend Stocks For Beginners this February 2026 in Canada

Canadian National Railway (CNR.TO) is an appealing choice for novice investors looking to make tax-free savings account contributions, given its emphasis on dividend stability and growth potential. With a dividend yield of 2.62%, it offers reliable income, although the stock has experienced a -10.99% return over the past year. Recent analyst ratings reflect a positive outlook, with Citigroup maintaining a "Buy" rating and CIBC upgrading to "Outperform," making CNR a solid consideration in the transportation infrastructure sector.

Over the past 12 months, CP has underperformed CNR, with returns of -7% for CP compared to a 6% decline for CNR.

CNR is a decent choice for dividend investors, especially if freight volumes improve and market sentiment shifts towards long-term growth stocks.

Manulife Financial (MFC.TO) stands out as a diversified player in the insurance and wealth management sector, with a notable 3.61% dividend yield and multiple income streams across Canada, the US, and Asia. The stock is currently trading at a reasonable 16 times earnings, making it an attractive option for investors seeking reliable income from a financially sound company. With a solid one-year return of 16.28% and an impressive 118.30% over five years, MFC is well-regarded among analysts, receiving an Outperform rating from RBC Capital.

MFC offers a solid dividend yield of 4.18%, significantly higher than the average yield of 0.53% among the bottom 25% of dividend payers in the US market.

Manulife stock is currently considered overvalued with a Price-to-Earnings ratio of 15.7x, but investors should monitor any changes in analyst assumptions and revenue growth.

AltaGas Ltd (ALA.TO) presents a solid investment opportunity, characterized by a 3.06% dividend yield and a consistent track record of 5-7% annual dividend growth. The company effectively combines a stable U.S. utility with a thriving midstream business in Canada, demonstrating strong cash flows and prudent debt management. Analysts at TD Securities maintain a "Buy" rating, noting that ALA is currently undervalued by 36.1% based on its intrinsic valuation.

AltaGas is a strong long-term investment due to its robust cash flows, effective debt management, and growth initiatives in Canada and the US.

ALA stock is currently undervalued by 36.1%, with a market price of 41.58 CAD compared to its intrinsic valuation.

The average 12-month price target for ALA stock is C$47.72, reflecting a potential 16.71% increase from its last price of C$40.89.

Canadian Utilities (CU.TO) stands out as a top-rated choice for investors seeking reliable dividend-growth stocks, boasting an impressive history of 54 consecutive years of dividend increases. Currently offering a yield of 4.19%, the company has recently announced a 1% dividend raise, reflecting its commitment to consistent payouts. Analysts are optimistic about CU's future, with buy signals from both short and long-term moving averages, suggesting a positive outlook for the stock.

Canadian Utilities Limited (CU.TO) has buy signals from both short-term and long-term moving averages, indicating a positive outlook for the stock.

Canadian Utilities projects revenues of CA$4.6 billion and earnings of CA$808.3 million by 2028, requiring a 7.4% annual revenue growth and an increase in earnings from CA$446 million.

The average 12-month price target for Canadian Utilities A is C$42.50, with a high of C$44.00 and a low of C$40.00, based on recent analyses from four Wall Street analysts.

MTY Food Group (MTY.TO) has recently enhanced its appeal by announcing a 12% increase in its quarterly dividend, bringing the yield to approximately 3.19% for 2026. Despite a challenging year with a -16.73% return, the stock is generating positive signals from both short and long-term moving averages, indicating a favorable outlook. Analysts maintain a consensus rating of "Hold," suggesting cautious optimism amidst a competitive consumer cyclical sector.

MTY Food Group Inc. stock shows buy signals from both short and long-term Moving Averages, indicating a positive forecast.

Analysts rate MTY Food Group as a Hold, which is lower than the Moderate Buy consensus for other consumer cyclical companies.

Analysts have set a price target for MTY at 43.33 CAD, with estimates ranging from a minimum of 37.00 CAD to a maximum of 50.00 CAD.

The average price target for MTY Food Group is 42.63 CAD, with a potential increase of 6.55% from the current price of 40.01 CAD.

Fortis Inc. (FTS.TO) stands out as a solid choice for long-term income investors, boasting 52 years of consecutive dividend growth. With a current dividend yield of 3.44% and an impressive 41.49% return over the past five years, this utility stock is known for its reliable income stream from financially healthy operations. Analysts maintain a cautious but stable outlook, with RBC Capital rating it as Sector Perform and Credit Suisse holding a Neutral stance.

FTS stock represents shares of Fortis Inc., which is traded on the Toronto Stock Exchange and the New York Stock Exchange.

Analysts project an average price target of $52.88 for Fortis, with estimates ranging from $46.00 to $57.67, indicating a potential increase of 0.92% from its last closing price of $52.40.