Typically, when in search of shares to purchase, Canadian buyers give attention to a number of the hottest names with important progress potential. Nevertheless, as vital as it’s to have high-quality progress shares in your portfolio, regular and dependable dividend powerhouses are additionally a number of the most vital Canadian shares you may personal.

Proudly owning defensive firms with dependable earnings that may persistently improve their dividends may also help energy your portfolio to important beneficial properties, notably over the lengthy haul.

And whereas progress shares may also help result in important beneficial properties throughout financial expansions and market rallies, dependable dividend shares are key to serving to you earn a return when the economic system is struggling and the inventory market is flat or quickly declining.

So, with that in thoughts, if you happen to’re trying to shore up your portfolio right this moment and enhance the passive earnings your holdings generate, listed here are two Canadian dividend inventory powerhouses that not solely are continuously returning capital to buyers however are additionally persistently rising their dividend funds every year.

Among the finest powerhouse Canadian dividend shares on the TSX

Definitely, one of many perfect dividend shares that Canadian buyers should purchase is the huge large-cap utility inventory Fortis (TSX:FTS).

Utility shares are well-known as a number of the most secure and most dependable companies you may spend money on, in addition to a number of the prime dividend progress shares to purchase and maintain for the lengthy haul. And whereas there are a number of high-quality utility shares in Canada, Fortis is without doubt one of the finest.

First off, along with its spectacular and well-diversified utility operations, which encompass each electrical and fuel utilities unfold throughout a number of jurisdictions, its monitor document alone highlights what an unbelievable long-term funding Fortis is.

For 50 straight years now, the Canadian inventory has persistently elevated its dividend each single yr. And these aren’t little will increase to its dividend simply to maintain the streak alive. The truth is within the final 5 years, the dividend alone has grown by over 30%, or a compounded annual progress fee (CAGR) of 5.8%, simply outpacing inflation.

As I discussed above, Fortis’ diversified portfolio of electrical and fuel utilities throughout a number of jurisdictions helps mitigate danger in an already ultra-low-risk trade. Not solely are utilities important and see little or no fluctuation in demand even when the economic system is struggling, however the trade can also be regulated by governments, making Fortis’ future income and earnings potential extremely predictable.

This makes Fortis’ dividend extremely sustainable. Plus, with the continual shift to cleaner vitality and the demand for electrical energy continuously rising, Fortis continues to have years of progress potential forward of it.

So while you mix its constant dividend progress with the capital beneficial properties it offers buyers, it’s no shock {that a} low-volatility inventory like Fortis has earned buyers a CAGR of 9.5% over the past decade.

Moreover, with rates of interest nonetheless elevated, Fortis inventory continues to commerce off its highs, making now a wonderful time to purchase the powerhouse Canadian dividend inventory.

A prime monetary companies inventory

Along with Fortis, one other high-quality powerhouse Canadian dividend inventory is Manulife (TSX:MFC).

Manulife is considered one of Canada’s largest monetary companies firms with a market cap of roughly $64 billion. Plus, its mixture of insurance coverage and wealth administration companies unfold throughout Canada, the U.S., and Asia offers it a tonne of diversification to assist mitigate danger. To not point out, it additionally exposes Manulife to extra progress potential, notably in Asian markets.

Though its dividend progress streak is far shorter than Fortis’ at simply 9 years, it’s additionally a Canadian dividend aristocrat. And with robust recurring income and constant profitability the dividend is very sustainable.

The truth is, in 2023, Manulife’s dividend payout ratio was simply 42% of its normalized earnings per share (EPS), permitting it to each return loads of capital to buyers whereas additionally retaining capital to spend money on future progress.

Moreover, analysts estimate its normalized EPS will develop by 7% this yr and one other 8% subsequent yr, which is critical progress for such an enormous firm.

So, if you happen to’re in search of a high-quality powerhouse Canadian dividend inventory to purchase now and maintain for years to come back, there’s no query that Manulife is a prime decide.