Best Utility Stocks in Canada This September 2025
In today's volatile market, Canadian utility stocks continue to be a cornerstone for investors seeking stability and income. As essential service providers, these companies offer reliable returns and are often excellent dividend-paying stocks that can provide steady income streams while maintaining defensive positioning in uncertain economic times. The utility sector remains particularly attractive for those looking to balance their investment portfolios with lower-risk options.
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Summary Table for Best Utility Stocks in Canada This September 2025
| Stock | Dividend | 1-Year Return | Learn More |
|---|---|---|---|
|
Fortis Inc Growth Investment |
No | N/A | Learn More |
|
Emera Inc Dividend Income |
4.7% | N/A | Learn More |
|
Hydro One Limited (H) Dividend Income |
2.77% | 70% | Learn More |
|
Capital Power Corporation (CPX) Dividend Income |
4.25% | 65.48% | Learn More |
|
Brookfield Renewable Partners (BEP.UN) Dividend Income |
5.92% | -5.4% | Learn More |
|
Algonquin Power & Utilities Corp Dividend Income |
4.83% | 2.18% | Learn More |
|
Superior Plus Corp Growth Investment |
No | N/A | Learn More |
1. Fortis Inc
Fortis Inc. stands out as one of Canada's most reliable dividend stocks, with an impressive track record of increasing dividends annually since 1973 and a commitment to 4-6% annual dividend growth through 2029.
Fortis Inc
- Listed on both TSX and NYSE under symbol FTS
- Regulated utility assets providing predictable earnings
- 50+ year history of consecutive dividend increases
- Projected 4-6% annual dividend growth through 2029
Pros
- One of the safest dividend stocks in Canada
- Predictable earnings from regulated utilities
- Strong dividend growth history since 1973
- Defensive business model
Cons
- Moderate yield compared to some alternatives
- Interest rate sensitivity
- Capital-intensive business model
- Trading near analyst price targets
Why is it Our Top Pick?
Fortis offers an exceptional combination of defensive appeal, reliable income generation, and steady growth potential through its regulated utility assets. The company's half-century track record of dividend increases, coupled with its clear growth guidance through 2029, makes it an ideal core holding for income-focused investors.
2. Emera Inc
Emera Inc. is a multinational energy holding company offering investors exposure to North American utility infrastructure with a strong dividend yield of 4.7% and significant growth potential through its capital investment initiatives.
- Geographically diverse energy and services company
- Strong North American utility footprint
- Quarterly dividend payments (Feb, May, Aug, Nov)
- Significant capital investment program
Pros
- Durable dividend yield of 4.7%
- Strong capital investment plan
- Geographic diversification
- Stable utility-based revenue
Cons
- Interest rate sensitivity
- Large debt maturities upcoming
- Refinancing risks
- High interest rate pressure
3. Hydro One Limited (H)
As Ontario's largest electricity transmission and distribution provider serving 1.5 million customers, Hydro One offers investors steady dividend income backed by regulated utility assets and essential infrastructure services.
Hydro One Limited (H)
- Largest electricity transmission and distribution provider in Ontario
- Regulated utility assets providing stable cash flows
- Market capitalization of $29.41B with enterprise value of $47.48B
Pros
- Essential service provider with regulated revenue streams
- Strong market position in Ontario
- Consistent quarterly dividend payments
- Defensive stock characteristics
Cons
- High debt-to-equity ratio of 140.53
- Analysts rate as "Hold" with limited upside potential
- Higher P/E ratio at 23.46x
- Dependent on single geographic market
4. Capital Power Corporation (CPX)
Capital Power Corporation stands out as a growth-oriented North American power producer with strong analyst support, maintaining a "Strong Buy" consensus rating and offering an attractive dividend yield backed by renewable and thermal power generation facilities.
Capital Power Corporation (CPX)
- Develops, acquires, and operates renewable and thermal power facilities
- Present in both Canadian and US markets
- Recently increased quarterly dividend to $0.6910 per share
Pros
- Strong buy rating from 6 out of 7 analysts
- Growing dividend payments over 10 years
- Geographic diversification across North America
- Lower market volatility than average
Cons
- Limited near-term upside potential
- 52-week price volatility ($41.87 to $68.73)
- Power generation sector risks
- Market-dependent revenue streams
5. Brookfield Renewable Partners (BEP.UN)
Brookfield Renewable Partners stands out as a globally diversified clean energy powerhouse, owning and operating a substantial portfolio of renewable power assets across North America, Colombia, and Brazil, with an attractive 5.92% dividend yield.
Brookfield Renewable Partners (BEP.UN)
- Globally diversified renewable energy portfolio
- Investment-grade balance sheet
- Large development pipeline
- Inflation-indexed revenues
Pros
- Substantial clean energy asset base
- Strong management track record
- Inflation-protected revenues
- Investment-grade balance sheet
Cons
- Underperformed market since 2022 (-5.4% return)
- Interest rate sensitivity
- Complex corporate structure
- High enterprise value ($60.02B)
6. Algonquin Power & Utilities Corp
Algonquin Power & Utilities Corp is a diversified international utility company with over $16 billion in assets, offering investors exposure to regulated utilities and renewable energy with a recently reset 4.83% dividend yield.
Algonquin Power & Utilities Corp
- Diversified utility operations
- Renewed focus on pure-play utility business
- $16B+ in total assets
- Regulated revenue streams
Pros
- Undervalued according to analysts
- Strong utility asset base
- Stable regulated income
- Growth potential in core markets
Cons
- Recent 40% dividend cut
- Underperformed industry average
- High debt levels
- Negative short-term returns (-5.90% 1-month)
7. Superior Plus Corp
This Superior Plus Corp offers excellent value for Canadian consumers.
Superior Plus Corp
- Four business segments including U.S. Propane, Canadian Propane, Wholesale Propane, and Certarus
- Leading distributor of propane and compressed natural gas in North America
- Strong market capitalization of $1.8 billion with enterprise value of $3.9 billion
Pros
- Strong analyst support with 5 buy ratings and 1 strong buy rating
- Established Canadian company with significant US presence
- Expected EPS growth of 22.5% per annum
Cons
- High payout ratio of 659.3% raises dividend sustainability concerns
- Significant debt levels and strained balance sheet
- Volatile earnings and sensitivity to weather conditions
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 Utility Stocks in Canada This September 2025
What are the best utility stocks to buy in Canada September 2025?
Fortis Inc (FTS) and Hydro One Limited (H) are leading the Canadian utility sector with dividend yields above 4.2% and 3.8% respectively.
Which Canadian utility stocks have the highest dividend yields in 2025?
Brookfield Renewable Partners (BEP.UN) offers the highest dividend yield at 4.8% among major Canadian utility stocks.
How do I choose the best Canadian utility stocks for passive income in 2025?
Focus on established companies with consistent dividend growth like Emera Inc and Capital Power Corporation (CPX), which have maintained dividend increases for over 10 consecutive years.
