Utilities generate the power, move the natural gas, and carry the connections Canadians rely on every day. That essential-service revenue is why income investors have leaned on the sector for decades.

This year, Canadian utilities have given investors plenty to think about. One high-profile dividend cut grabbed the headlines. But it also put the whole sector on display, and what investors found underneath looks as strong as it has in years.

The TELUS Reset

In late-July, TELUS reset its quarterly dividend, cutting the payout by 55%. The move is expected to generate approximately $2.7 billion in cumulative savings through 2028, with cash being directed toward paying down debt.¹

A dividend cut is never welcome news. But look at what TELUS is doing with the money: paying down debt today to put the business on firmer footing tomorrow. The company itself framed the reset as a way to support deleveraging and fuel long-term growth.¹ That’s a deliberate trade-off, a smaller payout now in exchange for a stronger foundation later.

Elsewhere in The Sector, The Story is Growth

Fortis has increased its dividend for 52 consecutive years, a streak few companies in any sector can match, and expects that record to extend through the end of the decade.²

Pipelines are just as busy. Enbridge added another billion dollars to its secured project backlog this summer, bringing the total to approximately $41 billion.³ Enbridge calls it the best environment for growth in ten years.³

And this buildout is far from finished. To keep up with demand, annual worldwide grid investment will need to rise by roughly 50% by 2030.⁴

The Demand Story Is Just Getting Started

Why all the spending? The world needs more electricity. Data centres are pushing demand higher, and that climb is expected to continue through the end of the decade.⁴

The same story has been unfolding at home. Alberta’s grid operator now has more data centre proposals than it can connect in the short term.⁵ That gap between demand and supply will take years to close, and Canada’s power producers and pipelines sit on the right side of it.

Single Ticker Exposure to The Canadian Utilities Story: UTES

Canadian utilities offer what few sectors can right now: essential services, steady revenues, growing dividends, and a demand tailwind that is only building. The Evolve Canadian Utilities Enhanced Yield Index Fund (UTES) is an index-based ETF that invests in Canada’s major utility, pipeline, and telecommunications companies, the businesses that keep the country’s power, energy, and connections running. The value of that structure is balance. The impact of any one company’s setback is diluted across the broader portfolio, which is designed to capture the sector’s direction rather than a single headline. The fund pairs an active covered call strategy on up to 33% of the portfolio with modest leverage that seeks to amplify income and pays distributions monthly.

For investors seeking single-ticker access to the sector’s steady dividends and its growing role in powering that demand, UTES offers a straightforward way to participate.

For more blogs like this, insights on investing and investment products, sign up for our weekly newsletter.

Sources

1. https://www.telus.com/en/about/news-and-events/media-releases/telus-reports-second-quarter-2026-financial-and-operational-results-and-resets-quarterly-dividend-to-support-deleveraging-and-fuel-long-term-growth. July 31, 2026
2. https://www.fortisinc.com/news/news-releases/detail?id=9776. February 12, 2026
3. https://www.enbridge.com/media-center/news/details?id=123885. July 31, 2026
4. https://www.iea.org/reports/electricity-2026/executive-summary. 2026
5. https://www.cbc.ca/news/canada/calgary/ai-data-centre-alberta-electricity-9.6977136. November 12, 2025

 

DISCLAIMERS

Published August 19, 2026.

Evolve Funds Group Inc. is the investment fund manager and portfolio manager. Evolve Canadian Utilities Enhanced Yield Index Fund (UTES) are offered by Evolve Funds Group Inc. and distributed through authorized dealers.

The information contained herein is a general description and is not intended to be specific investment advice to any particular investor nor intended to be investment or tax advice. You should not act or rely on the information contained herein without seeking the advice of an appropriate professional advisor. The information is intended for informational purposes as a summary only, does not constitute an offer to sell any securities or a legally binding obligation, and is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the prospectuses found at https://evolveetfs.com/

Leverage increases risk.

Commissions, trailing commissions, management fees and expenses all may be associated with exchange traded funds (ETFs) and mutual funds. Please read the prospectus before investing. ETFs and mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.

Certain information contained in this document is obtained from third parties. Evolve Funds Group Inc. believes such information to be accurate and reliable as of the date hereof, however, we cannot guarantee that it is accurate or complete or current at all times. The information provided is subject to change without notice.

Certain statements contained herein are forward-looking. Forward-looking statements (“FLS”) are statements that are predictive in nature, depend upon or refer to future events or conditions, or that include words such as “may,” “will,” “should,” “could,” “expect,” “anticipate,” “intend,” “plan,” “believe,” or “estimate,” or other similar expressions. Statements that look forward in time or include anything other than historical information are subject to risks and uncertainties, and actual results, actions or events could differ materially from those set forth in the FLS. FLS are not guarantees of future performance and are by their nature based on numerous assumptions. Although the FLS contained herein are based upon what Evolve Funds Group Inc. and the portfolio manager believe to be reasonable assumptions, neither Evolve Funds Group Inc. nor the portfolio manager can assure that actual results will be consistent with these FLS. The reader is cautioned to consider the FLS carefully and not to place undue reliance on FLS. Unless required by applicable law, it is not undertaken, and specifically disclaimed that there is any intention or obligation to update or revise FLS, whether as a result of new information, future events or otherwise.