Canadian Utilities Hits 54-Year Dividend Growth, A Record of Stability

By Janet Adams

CALGARY, AB – January 08, 2026 – Canadian Utilities Limited (TSX: CU) has once again solidified its reputation as a pillar of financial consistency, announcing a one percent increase to its quarterly common share dividend. While the modest bump may seem routine, the milestone it represents is anything but: this marks the 54th consecutive year the company has raised its payout to shareholders, the longest track record of any publicly traded Canadian company.

The Board of Directors declared a first-quarter dividend of 46.23 cents per share, up from the 45.77 cents paid in the preceding four quarters. The dividend is scheduled for payment on March 1, 2026, to shareholders of record as of February 5, 2026. This unwavering commitment to growing shareholder returns places the ATCO-owned company in an elite global category of 'dividend aristocrats,' making it a cornerstone for income-focused portfolios.

In addition to the common share dividend, the company also declared quarterly dividends for eight series of its Cumulative Redeemable Second Preferred Shares. All announced dividends are designated as 'eligible dividends' for Canadian tax purposes.

A Legacy of Unmatched Shareholder Returns

Achieving over half a century of consecutive dividend increases is a feat that speaks volumes about a company's long-term financial discipline and operational resilience. Canadian Utilities has navigated numerous economic cycles, from recessions and market downturns to periods of high inflation and fluctuating energy prices, all while consistently rewarding its investors. This track record is not accidental but the result of a deliberate corporate strategy focused on stable, predictable growth.

A look at recent history illustrates this methodical approach. The dividend per share stood at 0.4442 CAD in 2022, rising to 0.4486 CAD in 2023, 0.4531 CAD in 2024, and 0.4577 CAD in 2025. The latest increase continues this pattern of steady, incremental growth, which analysts see as a sign of prudent management that prioritizes sustainability over aggressive, potentially risky, hikes. For investors, particularly retirees and those seeking reliable income streams, this predictability is a highly valued commodity in an often-volatile market.

The Financial Bedrock of Consistency

The ability to fund 54 years of dividend growth is rooted in a robust financial foundation built on regulated and long-term contracted assets. The company's recent financial performance underscores this strength. For the full year 2024, Canadian Utilities reported adjusted earnings of $647 million, or $2.38 per share, a notable increase from the $596 million, or $2.21 per share, recorded in 2023.

Crucially, the company is reinvesting heavily to secure future earnings. It plans to deploy a minimum of $6.1 billion in capital expenditures between 2025 and 2027, with the vast majority directed toward its regulated utilities. These investments in electricity and natural gas transmission and distribution infrastructure expand the company's rate base, which directly supports future earnings and, by extension, its capacity to continue raising dividends. In 2024 alone, 92% of the $1.61 billion in capital spending was allocated to its regulated utility segments.

Furthermore, the company maintains a healthy financial posture by managing its payout ratio carefully. With a dividend cover of approximately 2.0, Canadian Utilities pays out only about half of its earnings as dividends. This moderate approach ensures that sufficient capital is retained for reinvestment in growth projects and operational maintenance, safeguarding the dividend's long-term sustainability.

Diversification as a Pillar of Strength

Underpinning Canadian Utilities' financial resilience is a diversified global business model that balances stability with strategic growth. The corporation, with its $24 billion in assets and approximately 9,100 employees, operates through three primary segments that provide both geographic and operational diversification.

• ATCO Energy Systems: This is the company's core, comprising regulated electricity and natural gas utilities in Canada and international electricity operations. These assets provide highly predictable, regulated returns that form the bedrock of the company's cash flow.
• ATCO Australia: This segment develops, owns, and operates energy and infrastructure assets Down Under, including regulated natural gas distribution services in Western Australia. This provides geographic diversification within a stable, developed market.
• ATCO EnPower: Focused on the future of energy, this segment pursues growth in sustainable solutions, including electricity generation, energy storage, industrial water, and cleaner fuels. Projects like the Atlas Carbon Storage Hub signal a commitment to participating in the global energy transition, opening new avenues for long-term profitability.

This structure allows the company to generate reliable cash flow from its regulated base while strategically investing in growth areas that promise future returns, creating a balanced portfolio that can withstand shocks in any single market or sector.

Market Confidence and a Defensive Appeal

The market's reaction to Canadian Utilities' steadfast performance has been consistently positive. Analysts maintain a favorable outlook, with recent ratings pointing to a 'Buy' consensus and a price target of C$47.00. The stock is widely viewed as a classic 'defensive' holding—an asset that tends to perform reliably regardless of the broader economic climate due to the essential nature of its services.

With a forward dividend yield of approximately 4.28% prior to the announcement, the stock already offered an attractive income proposition. The 54-year growth streak, however, is its key differentiator, setting it apart from peers in the utilities sector. While other utilities offer stable dividends, few can claim a history of growth that spans more than five decades. This distinction reinforces investor confidence and solidifies the company's role as a safe-haven investment for those looking to build wealth steadily and shield their portfolios from volatility.

As Canadian Utilities moves forward with its significant capital investment plan and strategic positioning in sustainable energy, it appears well-equipped to continue building on its unparalleled legacy of shareholder value creation.