Short-term market pullbacks can create opportunities for investors to acquire fundamentally sound dividend stocks at more attractive valuations, lock in higher yields, and enhance total long-term return potential. Emera, Fortis, and Toronto-Dominion Bank each possess stable regulated or diversified business foundations, long-standing records of continuous dividend growth, and clearly defined capital investment plans, making them noteworthy candidates for income-focused and long-term investors when share prices retreat.
Emera is an attractive dividend stock to buy on a pullback. The company owns a portfolio of regulated electric and natural gas utility assets that generate stable earnings and reliable cash flows even under uncertain economic conditions. Over the past year, the stock has risen more than 27%, driven by its defensive business model, disciplined capital investments, and growing energy demand. Emera has increased its dividend for 19 consecutive years and currently pays a quarterly dividend of C$0.73 per share, yielding approximately 3.8%. Looking ahead, management expects annual dividend growth of 1% to 2%, supported by a C$20 billion capital investment plan. This plan is expected to expand Emera’s regulated asset base and drive long-term earnings growth. Investments in solar energy, grid modernization, energy storage, transmission and distribution, and natural gas infrastructure position Emera to benefit from rising electricity demand while returning substantial cash to shareholders.
Fortis is another Canadian dividend stock worth buying on a pullback. Driven by its resilient business model, growing dividend, and rising electricity demand, this utility company’s share price has advanced approximately 30% over the past year. Fortis derives its earnings from regulated electric and natural gas transmission and distribution operations. Because these businesses generate predictable revenues and cash flows, the company is less exposed to commodity price volatility and broader economic cycles, providing a solid foundation for maintaining and enhancing shareholder returns. Fortis has increased its annual dividend for 52 consecutive years and offers a dividend yield of 3.2%. Going forward, Fortis anticipates medium-term annual dividend growth of 4% to 6%, backed by a C$28.8 billion capital investment program. This investment is expected to expand the company’s regulated asset base, drive sustained earnings growth, and strengthen its ability to continue returning capital to shareholders. The ongoing increase in electricity demand also provides additional tailwinds for the company’s long-term development.
Toronto-Dominion Bank is one of the most attractive Canadian dividend stocks to buy on a pullback, with its share price advancing more than 76% over the past year. This financial services giant has paid dividends for over 169 consecutive years and has maintained an average annual dividend growth rate of approximately 8% over the past decade. The bank’s ability to sustain dividend growth is underpinned by a diversified revenue base, strong momentum across its business segments, and an ongoing focus on operating efficiency. With a dividend payout ratio of roughly 40% to 50%, Toronto-Dominion Bank retains ample capacity to reinvest in its business while sustaining a growing dividend. Looking ahead, steady growth in loans and deposits, a diversified operating platform, margin improvements, and ongoing efficiency-enhancement initiatives are expected to support continued earnings growth. In addition, strategic acquisitions could further strengthen its competitive position, providing another catalyst for long-term growth and future dividend increases.
