Best Esg Stocks in Canada This September 2025
As Canadian investors increasingly prioritize sustainable and responsible investing, ESG stocks on the TSX continue to gain momentum. With growing environmental awareness and stricter corporate governance standards, exploring investment opportunities in ESG-focused companies has become essential for building a future-proof portfolio in the Canadian market.
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Summary Table for Best Esg Stocks in Canada This September 2025
| Stock | Dividend | 1-Year Return | Learn More |
|---|---|---|---|
|
Telus Corporation (T.TO) Dividend Income |
7.6% | -3.4% | Learn More |
|
Royal Bank of Canada (RY.TO) Dividend Income |
3.03% | 17% | Learn More |
|
Enbridge Inc Dividend Income |
5.39% | 3.52% | Learn More |
|
Shopify Inc Growth Investment |
No | 35.42% | Learn More |
|
Canadian National Railway (CNR.TO) Growth Investment |
No | 3.97% | Learn More |
|
Fortis Inc Growth Investment |
No | 4-6% | Learn More |
|
Canadian Natural Resources Limited (CNQ.TO) Dividend Income |
5.16% | 474% | Learn More |
|
Emera Inc Dividend Income |
4.7% | 0.58% | Learn More |
1. Telus Corporation (T.TO)
Telus Corporation stands out as one of Canada's leading telecommunications companies, offering an exceptional 7.6% dividend yield with quarterly payments and a recent 7% dividend increase, making it an attractive option for income-focused investors.
Telus Corporation (T.TO)
- Quarterly dividend payments in January, April, July, and October
- Recent 7% dividend increase despite market challenges
- Strong presence in western Canadian provinces
- Diversified telecommunications and digital services portfolio
Pros
- High dividend yield of 7.6%
- Consistent quarterly payment schedule
- Strong market position in Western Canada
- Recent dividend increase shows financial stability
Cons
- Negative 1-year return of -3.4%
- Recent stock price weakness
- Facing competitive market pressures
- Some investor concerns about profit warnings
Why is it Our Top Pick?
Telus offers an industry-leading 7.6% dividend yield with a proven track record of dividend growth, recently increasing its payout by 7%. Despite market challenges, the company maintains a sustainable dividend program while expanding its digital services portfolio, making it an attractive choice for income-seeking investors.
2. Royal Bank of Canada (RY.TO)
Royal Bank of Canada represents a compelling investment opportunity as Canada's premier banking institution, currently trading at a 17% discount to its intrinsic value while maintaining a strong dividend yield and receiving a consensus "Strong Buy" rating from analysts.
Royal Bank of Canada (RY.TO)
- Quarterly dividend payments with current rate of $1.54 per share
- Consistent 3.03% forward dividend yield
- Strong analyst consensus rating
- Trading below intrinsic value
Pros
- Currently undervalued by 17%
- Strong Buy consensus from analysts
- Stable dividend history
- Strong institutional backing
Cons
- Some analyst sell recommendations (17%)
- Trading below target price
- Market volatility exposure
- Banking sector challenges
3. Enbridge Inc
Enbridge stands out as a leading Canadian dividend stock with a proven 30-year track record of dividend growth and a robust 5.39% current yield, making it a cornerstone holding for income-focused investors seeking stable returns.
Enbridge Inc
- 30-year dividend growth history with 9% CAGR
- Market capitalization of $150.65B
- Utility-like cash flow stability
- Forward P/E ratio of 21.74
Pros
- Strong track record of dividend increases
- Stable, utility-like business model
- Positive technical signals from moving averages
- Large market capitalization providing stability
Cons
- 24.46% ROI decline from 2021 to 2022
- Higher P/E ratio at 24.33
- Recent net income decline reported
- Stock price volatility in recent periods
4. Shopify Inc
Shopify represents a leading force in e-commerce technology, demonstrating strong growth potential with a 35.42% YTD return and a substantial market cap of $253.95B, positioning it as a key player in the digital commerce revolution.
Shopify Inc
- Dual-listed on TSX and NASDAQ
- Cloud-based commerce platform
- Market leader in e-commerce solutions
- Strong recovery potential demonstrated
Pros
- Leading position in e-commerce
- Strong market cap of $253.95B
- Impressive YTD performance
- Successful business recovery showing
Cons
- No dividend payments
- High P/E ratio of 78.11
- Significant historical price volatility
- Past 85% peak-to-trough decline
5. Canadian National Railway (CNR.TO)
Canadian National Railway operates a 20,000-mile network spanning Canada and Mid-America, offering essential transportation infrastructure with a proven track record of reliable dividend growth and moderate market returns.
Canadian National Railway (CNR.TO)
- Coast-to-coast Canadian rail network extending to Gulf of Mexico
- 20,000-mile transportation infrastructure
- Quarterly dividend payments with 48% payout ratio
- Moderate Buy consensus from 19 Wall Street analysts
Pros
- Extensive North American rail network coverage
- Strong dividend growth track record
- Stable business model with essential infrastructure
- Moderate Buy rating from analysts
Cons
- Higher volatility than competitor CP (3.97% vs 3.27%)
- Recent operational performance inconsistencies
- Labor dispute impacts in 2024
- Valuation concerns noted by some analysts
6. Fortis Inc
Fortis Inc. stands out as one of Canada's most reliable dividend stocks, operating a diversified portfolio of regulated utility assets that generate predictable earnings and support consistent dividend growth since 1973.
Fortis Inc
- Regulated utility assets across Canada, US, and Caribbean
- Dividend growth every year since 1973
- 4-6% annual dividend growth guidance through 2029
- Dual-listed on TSX and NYSE
Pros
- One of the safest dividend stocks in Canada
- Low-risk, regulated business model
- 50+ year dividend growth history
- Strong financial stability
Cons
- Moderate yield compared to some utilities
- Interest rate sensitivity
- Limited capital appreciation potential
- Trading at premium valuation (2.7x P/S ratio)
7. Canadian Natural Resources Limited (CNQ.TO)
Canadian Natural Resources stands out as one of Canada's largest oil and natural gas producers, delivering impressive total returns of 474% over 20 years with dividend reinvestments, significantly outperforming the TSX index's 288% return.
Canadian Natural Resources Limited (CNQ.TO)
- Diversified portfolio across Western Canada, North Sea, and Offshore Africa
- One of the largest oil and natural gas producers in western Canada
- Strong dividend growth with 5.16% current yield
- Comprehensive monthly, quarterly and annual disclosure requirements
Pros
- Effective and efficient operator with diversified assets
- Strong historical returns significantly outperforming TSX index
- Consistent dividend growth and payments
- Comprehensive public disclosure standards
Cons
- Recent stock performance affected by falling oil prices
- Exposed to commodity price volatility
- Challenging macro environment pressures
- Market cap declined to $86B due to recent challenges
8. Emera Inc
Emera is a geographically diverse energy and services company that offers investors a compelling combination of strong fundamentals and a durable 4.7% dividend yield, backed by its extensive North American utility footprint and strategic grid investments.
- Multinational energy holding company based in Halifax
- Investments in electricity generation, transmission, and distribution
- Strong presence in both US and Canadian markets
- Robust capital investment plan
Pros
- Durable and foundationally strong dividend yield
- Extensive North American utility footprint
- Strong growth prospects from US operations
- Strategic grid investments
Cons
- Risks from refinancing upcoming large debt maturities
- Pressure from high interest rates
- Dividends not fully covered by earnings
- Price target suggests potential -2.11% downside
Final Words
Selecting the ideal financial product ultimately depends on your individual goals, spending patterns, and financial situation. We recommend comparing the features and benefits of our top picks, then taking action to optimize your financial strategy for the current market conditions.
Frequently Asked Questions: Best Esg Stocks in Canada This September 2025
What are the best ESG stocks to buy in Canada September 2025?
Telus Corporation (T.TO) and Royal Bank of Canada (RY.TO) lead Canadian ESG stocks with top environmental and social governance ratings for September 2025.
Which Canadian ESG stocks have the highest dividend yields in 2025?
Enbridge Inc offers the highest dividend yield at 7.2% among top Canadian ESG stocks, followed by Royal Bank of Canada at 4.1%.
How do I choose sustainable ESG stocks in Canada for September 2025?
Focus on established companies with strong ESG scores like Canadian National Railway (CNR.TO) which reduced its carbon emissions by 15% in 2024-2025.
