There are several benefits when it comes to investing in dividend stocks. Investors can generate a predictable income stream via dividend payouts as well as benefit from long-term capital gains. While there are a ton of dividend-paying stocks in the U.S., you can also consider Canadian companies with equally strong fundamentals that fly under the radar.

The Canadian stock market is not as well-known compared to equity markets south of the border. But this does not mean you need to miss out on the best dividend stock selection especially given the market is expected to remain volatile in the near term.

Keeping these factors in mind, we take a look at three Canadian dividend-paying giants that should be on your radar today.

 
Enbridge is a popular Canadian stock

One of Canada’s largest companies, Enbridge (NYSE: ENB) also pays investors a tasty forward yield of 6.7%. Valued at a market cap of $80 billion, Enbridge has increased dividends for 25 consecutive years. In the last five years, dividends have increased at an annual rate of 11.74% compared to revenue growth of less than 3%.

In the second quarter of 2021, Enbridge reported adjusted earnings of $1.4 billion, up from $1.1 billion in the year-ago period. The energy heavyweight reaffirmed its EBITDA guidance range for 2021 that is forecast between $13.9 billion and $14.3 billion. At the midpoint estimate, this represents a growth of 6% year over year.

The company’s gas operations are regulated allowing it to generate stable earnings across business cycles. Further, its liquids pipelines connect Canada’s oil sands to several refineries that are located on the Gulf Coast. The demand for pipelines remains robust enabling Enbridge to reserve these requirements at appealing rates.

We can see how Enbridge’s earnings stability has allowed the company to increase dividends across business cycles.

 
Brookfield Renewable Partners is among the best Canadian dividend stocks

One Canadian stock that has crushed the broader markets in the last two decades, is Brookfield Renewable Partners (NYSE: BEP). It is one of the largest renewable energy companies in the world and has managed to expand its revenue and earnings by acquiring and developing quality clean energy cash-generating assets.

In the last 10 years, Brookfield has increased its funds from operations at an annual rate of 10% while its dividends have grown by 6% annually in this period. Brookfield Renewable stock currently provides investors with a yield of 3% and has returned over 15% to investors annually since 2000.

The shift towards clean energy solutions is all set to accelerate in the upcoming decades which suggests Brookfield can easily leverage its leadership position in this sector making it a top bet for 2021 and beyond.

Brookfield explains its existing assets can support annual FFO increases between 3% and 6% through 2025. The company ended Q2 with 31 gigawatts in development which is higher than its current operating portfolio that stands at 21 gigawatts.

 
Algonquin Power & Utilities

The final Canadian dividend-paying stock on my list is Algonquin Power & Utilities (NYSE: AQN), a company that has increased its dividends at an annual rate of 36.5% in the last five years. Comparatively, its revenue and earnings grew by 11% and 19% respectively in this period.

AQN has increased its customer base from 120,000 in 2013 to 800,000 in 2021. It generates two-thirds of its cash flows from utilities and the rest from renewable energy. Algonquin expects to spend $9.2 billion in capital expenditure over the next three years which will help it support dividend increases moving forward. Since its IPO in October 2009, AQN stock has returned 450% to investors.

Algonquin Power (NYSE:AQN)
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