Mike, Author at MOOSE MARKETS

Built on Trust, Powered by Wellness

When you look at steady dividend growth, you expect to find utilities, pipelines, or maybe a telecom. But every now and then, a consumer-facing brand breaks into the conversation by doing something rare: growing consistently, expanding globally, and becoming a staple in households. This business fits that profile. It’s not cyclical like energy, nor structurally challenged like traditional retail. Instead, it sells products people buy month after month, often for years.

And while the market has punished many small caps over the past two years, this name has quietly continued expanding its reach, especially in high-growth international markets. It’s also part of the Canadian Dividend Aristocrats, reinforcing its commitment to long-term dividend growth.

If you’re looking for a growth-oriented dividend payer with a strong brand and global ambitions, this one deserves a place on your radar.

How This Wellness Machine Works

Jamieson Wellness (JWEL.TO) operates a dual-segment model that balances brand strength with manufacturing scale. Its flagship Jamieson Brands division—representing roughly 85% of total revenue—includes its well-known vitamins, minerals, and supplements sold across Canada and over 50 international markets. This segment is the engine of the company: strong brand trust, high margins, and expanding global distribution.

Jamieson Wellness Global Brands from its Investors Presentation.

The Strategic Partners segment handles contract manufacturing for third parties. This adds volume, improves capacity utilization in its Canadian and U.S. facilities, and provides revenue diversification. While lower-margin, it supports the company’s manufacturing scale and helps spread fixed costs across more units.

Across both segments, Jamieson sells everything from multivitamins to immunity blends, sports nutrition, probiotics, and beauty-from-within products. Formats range from gummies to chewables to powders, keeping the portfolio modern and competitive with global players.

Why This Brand Has Staying Power

Jamieson has carved out a rare position in Canadian markets: a trusted consumer brand with accelerating international growth. For investors, this translates into a company that combines steady domestic demand with high-growth expansion abroad—especially in China and the U.S.

When the Formula Really Works

Jamieson’s biggest advantage is its brand equity, built over nearly a century and reinforced through quality-first marketing. This brand trust gives the company pricing power, especially in Canada where it dominates shelf space. Internationally, momentum is building quickly. China—where the wellness category is booming—delivered over 60% growth last quarter due to strong digital marketing and improved e-commerce presence. The company’s U.S. brand, Youtheory, also posted double-digit growth.

Another compelling part of the story is consistent top-line growth, typically in the high single digits to low double digits. Management is reinvesting heavily in marketing and distribution, which has temporarily compressed margins. But for long-term investors, this is exactly the type of reinvestment you want to see during a global expansion cycle.

Finally, the recent valuation reset has brought Jamieson back into a reasonable range for investors who prefer growth at a fair price rather than chasing momentum at the top.

Where the Formula Can Break Down

Jamieson’s EPS track record has not been as smooth as its revenue. Margin pressure, driven by reinvestment and cost inflation, has kept earnings growth uneven. Management’s 2025 EPS guidance sits below analyst expectations, reflecting near-term pressure.

The company also operates in a heavily regulated industry. Changes in labeling rules, product categories, or natural health product regulations can create temporary disruptions. International markets add further risk through foreign exchange volatility and evolving regulatory frameworks.

While the brand is dominant in Canada, Jamieson faces tough competition abroad from global giants like Haleon, Kenvue, and Glanbia. Winning shelf space, protecting margins, and maintaining product trust in new regions will require continuous investment and flawless execution.

Latest News: A Quarter Driven by Global Growth

On November 19, 2025, Jamieson delivered a strong quarter with revenue up 13% and EPS up 11%, driven by powerful momentum in its branded segment.

Key highlights:

Jamieson Brands +16.5%, led by strong performance across Canada, China, and international markets
Canada +4%, supported by effective marketing and product innovation
China +63%, thanks to stronger digital presence and high-performing online campaigns
Youtheory +16.8% in the U.S. via e-commerce and retail expansion
International markets +19.3%
Strategic Partners -11.2%, reflecting contract delays due to trade and tariff volatility

Overall, the branded business continues to carry the story.

The Dividend Triangle in Action: Growth with a Long Runway

Jamieson Wellness (JWEL.TO) 5-year Dividend Triangle chart. — Jamieson Wellness (JWEL.TO) 5-year Dividend Triangle chart

Jamieson’s dividend triangle tells the story of a company in expansion mode, not a mature slow-growth payer.

Revenue:
Revenue has grown steadily and at an impressive pace, reflecting strong domestic demand and accelerating international expansion.

Earnings per Share:
EPS has been bumpier, but the long-term trend is upward as investments begin converting into higher-margin branded sales.

Dividend:
The dividend continues to grow responsibly, supported by solid cash flow generation and the company’s commitment to maintaining its Dividend Aristocrat status.

Final Thoughts: A Growth-Oriented Dividend Payer Worth Watching

Jamieson is not your traditional defensive health stock—nor is it a commodity-based value play. It sits at the intersection of brand strength, global expansion, and health/wellness tailwinds. Short-term margin noise may keep the stock volatile, but long-term investors willing to ride the expansion curve could be well rewarded.

If you’re building a dividend portfolio with a bit of growth punch, this is one of the few small caps in Canada worth following closely.

Your Next Step: Get the Dividend Rock Star List

If you’re looking for high-quality dividend growers with proven business models and strong track records, make sure you download the Dividend Rock Star List—your shortcut to f

iltering out the noise and focusing on the best stocks available in Canada and the U.S.

👉 Get the Dividend Rock Star List here.

A Freight Machine Built for Tough Cycles

The transportation sector is notoriously cyclical, but some businesses learn to make volatility work in their favor. This is one of the rare freight operators that consistently comes out of downturns stronger than it went in. It expands when others retreat, improves margins when competitors are scrambling, and uses every cycle—good or bad—to upgrade its network and strengthen its long-term positioning.

For dividend investors willing to stomach short-term turbulence, this is one of the most compelling ways to gain exposure to North American logistics. It’s not smooth, and it’s not gentle—but over a full market cycle, the results tend to reward those who stay on board.

How the Business Works

TFI International (TFII.TO) operates across three major segments:

Less-Than-Truckload (LTL) — Pickup, consolidation, and delivery of small shipments.
Truckload (TL) — Full-load direct transport using vans, flatbeds, tank containers, and dedicated fleets.
Logistics — Asset-light brokerage, freight forwarding, and transportation management.

The company runs an extensive network across Canada, the U.S., and Mexico, serving industrial, retail, construction, and e-commerce customers. TFI uses a hybrid model—owning assets where it provides an advantage and keeping things asset-light in brokerage and logistics—to maintain flexibility during economic swings.

TFI International Who We Are, from its Q3 Presentation.

The Investment Thesis: Built to Scale, Built to Survive

TFI International has proven itself as one of the most disciplined operators in North American transportation. Over 70% of revenue now comes from the U.S., giving the company exposure to the largest trucking market in the world and to industries like manufacturing, construction, and e-commerce.

TFI’s strength lies in acquisition mastery. The 2021 purchase of UPS Freight was transformational—TFI cut operational waste, improved pricing discipline, and significantly expanded margins. The more recent acquisition of Daseke strengthened its presence in flatbed trucking, a segment tightly linked to industrial and infrastructure activity.

TFI’s network density, cost discipline, and ability to pivot during downturns give it a durable competitive advantage. Even though trucking is cyclical, TFI continuously emerges stronger from each downturn—a rare quality in the transportation sector.

Bull Case Summary

A North American Leader With Real Scale

TFI has grown into one of the largest trucking operators on the continent, with a deep footprint in Canada and the U.S. The company benefits from diversified end markets and a broad customer base, which helps soften the impact of industry cycles.

2. Acquisition Machine With a Proven Playbook

TFI’s greatest strength is its ability to take underperforming assets, streamline operations, and expand margins. The successful absorption of UPS Freight, and now Daseke, demonstrates that the company knows exactly how to extract value.

3. Margin Expansion Through Efficiency

Cost-cutting, fleet optimization, and asset-light operations in logistics allow TFI to maintain strong profitability even when freight volumes weaken. When markets recover, the margin leverage becomes even more compelling.

The Bear Case: Volatility Comes With the Territory

While TFI is a long-term winner, investors must be prepared for sharp short-term swings, especially during freight recessions.

The trucking industry is heavily tied to economic activity, and TFI’s results reflect that cyclicality. Higher fuel costs, labor shortages, and freight downturns can all pressure margins. The company’s rapid acquisition pace also creates integration risk—missteps could hurt returns.

In tougher quarters, TFI’s stock often reacts aggressively. When earnings disappoint, double-digit declines are not unusual. Investors need a strong stomach to stay the course.

Highly Cyclical and Volatile

TFI is sensitive to industrial production, retail demand, and freight rates. When the economy slows, volumes fall quickly—and so does the stock price.

Cost Pressures and Regulatory Risks

Fuel price spikes, driver shortages, and regulatory changes across North America can challenge profitability. Cross-border operations also add tariff and policy uncertainty.

Acquisition-Driven Growth Can Create Integration Risk

TFI’s strategy requires constant deal-making. If the company overpays or struggles to integrate a major asset, it could disrupt margins and cash flow.

Latest News: Freight Recession Still Hitting Hard

TFI International delivered another difficult quarter as industry weakness continues.

Q3 Highlights:

Revenue: down 10%
EPS: down 24%
LTL revenue: $687M (-11%)
TL revenue: $684.1M (-7%)
Logistics revenue: $367.8M (-14%)
Margin pressure across all segments

Management expects Q4 EPS of $0.80–$0.90, citing lower truck-manufacturer deliveries and ongoing freight softness.

TFI remains focused on cost discipline, customer retention, and preparing for the next upcycle.

The Dividend Triangle in Action: Reliable — but Not Perfect

TFI International TFI.TO 5-year dividend triangle chart.

Revenue:
TFI’s revenue has grown meaningfully over the past five years, although it moves in cycles, reflecting the ebb and flow of North American freight demand.

Earnings per Share:
EPS has been more volatile than revenue, but over a full economic cycle it trends upward thanks to strong cost discipline, smart acquisitions, and margin improvements during recovery periods.

Dividend:
The dividend continues to climb steadily, supported by healthy free cash flow generation and a payout ratio that gives management room to keep raising the distribution even during slower freight years.

TFI is not a classic smooth dividend grower, but it is a high-performing compounder over time.

The ONLY List Using the Dividend Triangle

You may wonder how I find such high-quality dividend stocks.

I handpick companies with a strong dividend triangle (revenue, earnings, and dividend growth trends) and make sure I understand their business model. While this may seem too simple, two decades of investing have shown me it is reliable.

While many seasoned investors also use these metrics in their analysis, no one has created a list based on them before. This is exactly why I created The Dividend Rock Stars List.

The Rock Stars List isn’t just about yield—it’s built using a multi-step screening process to ensure the highest-quality dividend stocks. You can read more about it or enter your name and email below to get the instant download in your mailbox.

A Business You Shop — and Should Probably Own

This grocerer isn’t flashy, speculative, or fast-growing — but that’s exactly why it deserves attention. This is a company Canadians interact with constantly, often without stopping to think about the investment behind the groceries, prescriptions, and everyday goods flowing through its network.

In a sector defined by thin margins and relentless competition, Loblaw has built an engine of steady growth through disciplined execution, national scale, and strong private-label brands. It doesn’t have an economic moat, but it does have staying power — and enough diversification to keep earnings climbing even in tougher retail environments.

Below is the full breakdown of the business, what drives its growth, the key risks, and how its dividend triangle stacks up today.

What Powers This Giant: The Business Model

Loblaw (L.TO) is Canada’s largest food and pharmacy retailer, operating more than 2,400 locations across banners like Loblaws, No Frills, Real Canadian Superstore, and Shoppers Drug Mart. Its operations fall into two segments:

Retail: food stores, discount banners, drug stores, in-store healthcare and beauty, apparel (Joe Fresh), and general merchandise.
Financial Services: PC Financial credit cards and everyday banking services, insurance brokerage, and telecommunications.

It also owns some of the strongest private-label brands in the country — President’s Choice and No Name — and operates PC Optimum, one of Canada’s most successful loyalty programs.

This combination gives Loblaw a wide, diversified footprint across essential categories.

Loblaw at a glance, from its Investor Relations Website.

Why Investors Stick With It: The Investment Thesis

The Bull Case — Scale, Loyalty, and Steady Demand

Loblaw remains Canada’s largest grocery and pharmacy retailer, and that scale matters. With over 2,400 stores and leadership across both food and health, the company benefits from stable, non-discretionary demand that tends to hold up even when the economy weakens. Its mix of discount banners, full-service supermarkets, and Shoppers Drug Mart gives it broad reach and reliable cash flow.

A major advantage lies in its private-label power (President’s Choice, No Name) and the strength of PC Optimum, one of Canada’s most effective loyalty programs. These two pillars boost margins, reinforce customer loyalty, and help Loblaw stand out in a category where products are nearly interchangeable. Private label + loyalty is the engine that keeps traffic and profitability moving in the right direction.

Growth continues to come from the right places: discount formats, pharmacy and healthcare services, and digital retail initiatives. Pharmacy is growing faster than grocery, e-commerce adoption remains solid, and Loblaw continues to leverage its scale to expand earnings. Add disciplined capital allocation and steady dividend growth, and you get a reliable compounder in an industry where predictability is hard to find.

The Bear Case — Margins Under Pressure in a Brutal Industry

Even with its size, Loblaw operates in a brutally competitive, low-margin industry. Costco, Walmart, and Amazon keep constant pressure on pricing, while consumers increasingly shop multiple banners to find deals. This dynamic limits Loblaw’s pricing power and forces it to continually reinvest savings into keeping prices low — a structural cap on margin expansion.

Labour and regulation are another challenge. Loblaw faces high unionization rates, frequent wage negotiations, and persistent cost inflation. At the same time, both food retail and pharmacy are under heavy regulatory and political scrutiny, especially around drug pricing and food inflation. Any policy tightening could directly impact profitability.

Finally, Loblaw’s moat remains narrow. Grocery retail offers low differentiation and low loyalty, and even strong brands like PC can’t fully protect against market share erosion. The business must continually invest to maintain its edge, and any misstep in pricing, supply chain, or execution carries outsized risk in such a competitive field.

The ONLY List Using the Dividend Triangle

You may wonder how I find such high-quality dividend stocks.

While many seasoned investors also use these metrics in their analysis, no one has created a list based on them before. This is exactly why I created The Dividend Rock Stars List.

Latest News: Solid Traffic, Strong Pharmacy, Steady Execution

On August 13, 2025, Loblaw reported another solid quarter with revenue up 5% and EPS up 12%, driven by strong in-store traffic and continued pharmacy momentum.

Key takeaways:

Food Retail same-store sales: +3.5%
Drug Retail same-store sales: +4.1%
Pharmacy & healthcare services: +6.2%
Retail free cash flow: $640M, up from $475M
61 new store openings added to the network
2M shares repurchased for $405M
Company reaffirmed outlook for high single-digit adjusted profit growth
Announced a 4-for-1 share split effective August 18

Loblaw continues to benefit from strong customer traffic, growing baskets, and disciplined capital allocation.

The Dividend Triangle in Action: Steady and Predictable

Loblaw (L.TO) 5-year dividend triangle chart.

Loblaw’s Dividend Triangle — revenue, earnings, and dividend growth — reflects a company built for reliability rather than rapid expansion.

Revenue: A long-term glide upward, supported by recurring grocery demand and expanding pharmacy services
Earnings per Share: Trending higher over time, with disciplined cost control and strong contributions from Shoppers Drug Mart
Dividend: Modest but consistent increases, backed by a conservative payout ratio and stable free cash flow

Loblaw remains one of Canada’s most dependable low-volatility dividend growers — not spectacular, but remarkably solid.

Final Words — A Stock You Already Support Every Week

Loblaw won’t deliver explosive growth — and it won’t build a wide economic moat either. But it will show up for investors the same way it shows up for shoppers: consistently.

It’s the kind of stock you buy when you want ballast in your portfolio. The business you shop at every week is the same business quietly compounding earnings, buybacks, and dividends in the background.

If you’re building a stable Canadian dividend portfolio, Loblaw deserves a spot on your radar.

Want More Dividend Rock Stars?

If you like dependable names like Fortis, don’t miss our Dividend Rock Star List — your guide to the best Canadian companies combining growth, stability, and reliable income for the long haul.

The Canadian Dividend King That Powers Portfolios

Some companies chase growth; others define stability. Fortis falls squarely in the latter camp — a true Dividend King with over 50 consecutive years of dividend increases, making it one of the most reliable income plays in North America.

While it may not grab headlines with flashy innovation, this utility powerhouse has quietly powered millions of homes — and countless portfolios — with the same steady rhythm for half a century.

If you’re building a portfolio to last, Fortis earns a spot on your shortlist right alongside the names featured in our Canadian Forever Stock Selection.

Business Model: Regulated Power, Predictable Growth

Fortis (FTS.TO) is one of North America’s largest regulated utility companies, serving over 3.5 million customers across Canada, the U.S., and the Caribbean. Its operations span electricity and natural gas distribution, transmission infrastructure, and renewable energy projects.

Roughly 99% of its earnings come from regulated operations, giving the company one of the most stable revenue bases in the market. Major subsidiaries such as ITC Holdings (U.S.), UNS Energy (Arizona), and FortisBC provide geographic and regulatory diversification.

This structure provides reliable cash flows, allowing Fortis to fund steady dividend growth and a robust C$26 billion capital plan through 2028.

Why Invest in Fortis, as found in its Q2 2025 Investors Presentation.

Investment Thesis: Powering Ahead with Predictability

Bull Case: A Model of Consistency

Fortis has mastered the art of slow, steady, and sustainable growth. Its regulated revenue model offers unmatched visibility into future earnings, while its ongoing capital investments fuel long-term expansion. The utility plans to grow its rate base by 6.5% annually through 2028, driven largely by investments in its U.S. transmission network (ITC) and renewable energy initiatives.

The company’s ability to deliver 4–6% annual dividend growth through 2029 underscores its commitment to shareholders. Fortis has raised its dividend for 51 consecutive years, placing it in the rare category of Canadian Dividend Kings.

Growth drivers include:

Large-scale grid and transmission expansion in the U.S. Midwest and Canada
Transition of coal assets to natural gas and renewable generation
Strategic investments in offshore wind and renewable natural gas
Inflation-linked rate base adjustments ensure cash flow protection

Fortis remains one of the few utilities offering steady earnings growth, inflation resilience, and reliable dividend compounding — all wrapped in a conservative, defensive package.

Bear Case: Regulated Stability Comes with Limits

While Fortis provides safety and predictability, it isn’t immune to headwinds. The company’s heavy reliance on debt-funded capital projects makes it sensitive to rising interest rates and financing costs. Approximately one-third of its current capital plan is funded through debt, a structure that works best in stable-rate environments.

Additionally, currency risk is real — with roughly 60% of earnings generated in the U.S., fluctuations in the CAD/USD exchange rate can impact results.

The regulated nature of its business also means limited upside: returns are capped by rate decisions from regulators. While this reduces volatility, it also constrains potential outperformance compared to faster-growing peers like Hydro One or Emera.

Finally, environmental and policy shifts — particularly around carbon reduction — could pressure Fortis to accelerate its transition spending faster than planned, straining capital budgets.

Latest News: Staying on Plan and On Track

On August 8, 2025, Fortis reported a solid quarter with EPS up 13% year-over-year, driven by continued execution of its capital plan and strong regulatory outcomes.

The company reaffirmed its C$26 billion five-year capital plan, including:

Converting 793 MW of coal generation at TEP’s Springerville station to natural gas by 2030
Achieving a coal-free portfolio by 2032
Growing its regulated rate base from US$39B (2024) to US$53B (2029) — a 6.5% CAGR

With $2.9 billion in capex deployed in the first half of 2025, Fortis remains firmly on schedule and continues to target annual dividend growth of 4–6% through 2029.

The Dividend Triangle in Action: Stability You Can Count On

Fortis (FTS.TO) 5-year dividend triangle.

Fortis’s Dividend Triangle — the combination of revenue, earnings, and dividend growth — demonstrates remarkable consistency over the past decade.

Revenue: Steady growth driven by rate base expansion
Earnings per Share: Reliable increases supported by predictable cash flows
Dividend: A 51-year streak of increases — the gold standard of dependability

Final Words: The Dividend King of Consistency

Fortis doesn’t aim to surprise the market — it aims to outlast it. With a proven management team, strong regulatory relationships, and an unbroken dividend growth record stretching over five decades, this utility remains a cornerstone holding for dividend investors seeking peace of mind.

It’s the kind of stock that may never dominate headlines, but it will quietly power your portfolio through any market cycle.

Want More Dividend Rock Stars?

The Best Canadian Energy Companies

Energy stocks are not typically my go-to for a dividend growth portfolio. Their cash flows swing with commodity prices, and dividend cuts can come faster than oil spills when markets turn. Yet, despite that volatility, Canada’s energy sector holds a few bright spots worth a closer look.

Some of these companies have learned to thrive in a world that no longer rewards boom-or-bust cycles. They’ve adapted with stronger balance sheets, better capital discipline, and a growing focus on shareholder returns. Whether through pipelines, oil sands, or industrial equipment, these players demonstrate that dependable cash flow can still be found in the energy patch — if you know where to look.

4. Enbridge (ENB.TO)

The Backbone of North American Energy Flow

Investment Thesis
Enbridge isn’t an oil producer — it’s the toll road that energy flows through. Its vast pipeline network transports roughly 70% of Canada’s crude oil and a large portion of its natural gas. Thanks to long-term take-or-pay contracts (many lasting over two decades), Enbridge enjoys a predictable cash flow largely independent of commodity prices.

Following its merger with Spectra Energy, Enbridge expanded into natural gas transmission, which now makes up nearly half of earnings. The company also operates a growing portfolio of renewable energy assets, positioning it to play a role in the energy transition. Management targets 7–9% annual EBITDA growth through 2026, underpinned by recent U.S. gas utility acquisitions.

Enbridge (ENB.TO) 5-year dividend triangle chart.

Potential Risks
Enbridge’s biggest challenge is its balance sheet. With over $100 billion in long-term debt, rising interest rates and regulatory hurdles could strain cash flow. Environmental opposition and project delays remain constant risks. While the company’s infrastructure is essential, its growth runway may narrow without further acquisitions or policy tailwinds.

Unlock More Dividend Growth Picks

If you want more hand-picked dividend growers across industries, grab our Dividend Rock Star List.

It features around 300 stocks with complete Dividend Safety Scores, growth projections, and buy lists tailored for retirement portfolios.

Most importantly, it is the ONLY list using the Dividend Triangle as its foundation.

3. TerraVest Industries (TVK.TO)

The Small-Cap Engine Powering Industrial Energy

Investment Thesis
TerraVest is a rare gem among smaller Canadian industrials. The company designs and manufactures specialized equipment for energy, transportation, and infrastructure markets — making it a hybrid between an energy supplier and a diversified manufacturer.

Its growth strategy leans heavily on acquisitions, expanding product lines, and market reach while maintaining disciplined execution. Recent deals like Advance Engineered Products and Highland Tank have boosted both scale and profitability. With recurring demand for essential infrastructure products, TerraVest’s cash flows tend to hold up even when oil prices drop.

TerraVest Industries (TVK.TO) 5-year dividend triangle chart.

Potential Risks
As a small-cap, TerraVest carries more volatility and execution risk. Integration challenges from rapid acquisitions can pressure margins, as seen in 2025 when financing costs weighed on earnings despite strong revenue growth. Investors should expect more fluctuation here than from larger peers.

2. Imperial Oil (IMO.TO)

A Steady Hand Backed by Exxon

Investment Thesis
Imperial Oil brings stability to an often-unstable sector. Its vertically integrated structure — spanning upstream, refining, and retail — provides balance across market cycles. With Exxon Mobil as a majority shareholder, Imperial gains access to world-class technology, research, and capital discipline.

Refining operations and over 2,000 Esso-branded stations offer steady cash flow when crude prices slump. Meanwhile, oil sands operations like Kearl and Cold Lake deliver scale and longevity. Recent investments in carbon capture and clean fuel initiatives show Imperial’s pragmatic approach to the energy transition.

Imperial Oil (IMO.TO) 5-year dividend triangle chart.

Potential Risks

Imperial’s oil sands exposure keeps it tethered to heavy crude prices and environmental scrutiny. Sustained low oil prices would strain its upstream cash flow, while delays in emission-reduction projects could hurt competitiveness.

1. Canadian Natural Resources (CNQ.TO)

A Cash Flow Machine in a Cyclical World

Investment Thesis
Canadian Natural Resources (CNQ) stands out as one of Canada’s most disciplined and diversified producers. Its combination of long-life, low-decline oil sands assets and conventional oil and gas operations gives it a unique ability to generate free cash flow even when crude prices weaken. With a breakeven WTI near $35 per barrel, CNQ has consistently outperformed peers during downturns.

The company’s strategy is refreshingly straightforward — produce efficiently, reinvest wisely, and return excess cash to shareholders. In 2025, production is expected to rise 13% year over year, driven by new projects and acquisitions, such as Chevron’s Alberta assets. Management’s proven counter-cyclical approach — investing when others retreat — has paid off in both growth and resilience.

Canadian Natural Resources (CNQ.TO) 5-year dividend triangle chart.

Potential Risks
CNQ’s profitability remains tied to commodity prices. Environmental and regulatory headwinds, particularly in Alberta, could limit expansion or increase compliance costs. Its capital-intensive oil sands operations, while efficient, are exposed to carbon pricing and pipeline constraints that could erode margins.

Balancing Risk and Reward in the Energy Sector

Canadian energy companies have come a long way from their boom-and-bust past. The best names today combine scale, efficiency, and diversification — essential traits for thriving in a decarbonizing world. Still, this remains a cyclical sector, where patience and timing matter.

For dividend investors, the key isn’t chasing the highest yield, but finding sustainable growth supported by operational discipline. CNQ and Imperial deliver that through scale and balance; TerraVest brings agility and niche strength; and Enbridge provides reliable cash flow through its infrastructure dominance.

If you’re looking to add exposure to Canada’s energy sector, these four companies represent the most solid mix of stability, growth potential, and dividend dependability available today. Just remember — even the steadiest oil stock can wobble when prices swing.

Find More Dividend Rock Stars

Want to discover more high-quality dividend growers like these?

Grab your copy of our Dividend Rock Star List, featuring around 300 stocks screened for dividend safety, growth potential, and long-term reliability.

Download your free Dividend Rock Star List here

Turning Trash into Steady Treasure

Waste might not be glamorous, but it’s one of the most reliable businesses out there. In good times or bad, people still generate garbage — and someone has to collect it. That simple reality has made the waste management industry a quietly powerful source of recurring revenue and growing dividends. Among the sector’s leaders, one company stands out for its disciplined growth, smart acquisitions, and focus on steady returns.

A Fortress Built from Waste

Waste Connections (WCN.TO) operates a vast network of landfills, transfer stations, and collection routes across the U.S. and Canada, serving roughly nine million residential, commercial, and industrial customers. It collects, transports, and disposes of non-hazardous solid waste while also managing recycling and renewable fuel recovery programs.

What makes the company unique is where it operates — primarily in secondary and rural markets. These regions face less competition and lower regulatory friction than dense urban areas, allowing for superior pricing flexibility and stronger margins.

Its integrated model — from curbside pickup to landfill disposal — provides both efficiency and pricing control. Add to that long-term municipal and industrial contracts, and you get a business that hums along through economic ups and downs.

Waste Connections (WCN.TO) at a glance, from its Q3 2025 Investor Presentation.

Investment Thesis: Built to Withstand the Cycle

Bull Case — Consistency You Can Count On

This is the kind of company dividend investors love: predictable, cash-generative, and built to last. Waste Connections benefits from steady demand, high switching costs, and barriers to entry that few industries can match.

Playbook:
The company generates most of its revenue from recurring waste collection and disposal services. Its strategy is to expand organically while acquiring smaller operators, integrating them into its efficient network. By controlling every step of the waste stream, it captures value others miss — from landfill tipping fees to recycling recovery.

Growth Vectors:

Acquisitions remain the backbone of growth. The purchase of Secure Energy Services’ Canadian disposal assets boosted both revenue and margin potential.
Core pricing power is another strength — solid waste pricing rose 6.6% year-over-year in the latest quarter.
Recycling and environmental services are emerging growth levers as the company expands into renewable fuels and materials recovery.
Strong cash generation supports continued investment and dividend increases, with adjusted free cash flow projected near $1.3 billion this year.

Economic Moat:
The moat here is real and durable. Landfill scarcity and regulatory hurdles make it extremely difficult for new competitors to enter. Once contracts and routes are established, customer churn is minimal. Waste Connections can raise prices above inflation without losing volume — a rare feat in any industry.

Bear Case — Even Strong Businesses Have Limits

Despite its resilience, this isn’t a risk-free story. The waste management sector carries its own operational and environmental challenges.

Business Vulnerabilities:
The company’s acquisition-heavy model demands constant integration. As industry consolidation continues, finding attractively priced targets will get tougher. Rising labor and equipment costs could also erode margin gains over time.

Industry & Market Threats:

Recycling volatility remains a headwind — commodity price swings can cause sharp revenue fluctuations.
Regulatory pressure is increasing, particularly as cities push for reduced landfill usage.
A slowdown in commercial and industrial activity could weigh on waste volumes if the economy softens.

Competitive Landscape:
While the company enjoys a strong position in smaller markets, larger peers like Waste Management (WM) and Republic Services (RSG) dominate urban centers and are expanding their sustainability initiatives. If governments tighten environmental standards or encourage municipal recycling, the competitive gap could narrow.

The ONLY List Using the Dividend Triangle

You may wonder how I find such high-quality dividend stocks.

While many seasoned investors also use these metrics in their analysis, no one has created a list based on them before. This is exactly why I created The Dividend Rock Stars List.

Latest News — Another Quarter of Steady Gains

August 8, 2025: The company reported another solid performance, with revenue up 7% and EPS up 4.7%. Core pricing in solid waste services increased 6.6%, leading to roughly 70 basis points of margin expansion.

Management reaffirmed full-year 2025 guidance:

Revenue: ~$9.45 billion
Adjusted EBITDA: ~$3.12 billion (≈33% margin)
Adjusted Free Cash Flow: ~$1.30 billion
CapEx: $1.2–$1.25 billion

Those numbers highlight the beauty of the model — dependable growth, disciplined spending, and resilient profitability even amid inflation and volatile commodity trends.

The Dividend Triangle in Motion

Waste Connections (WCN.TO) 5-Year Dividend Triangle chart.

Waste Connections may not boast the highest yield, but it’s a classic dividend grower. Its consistent pricing gains and cash flow discipline translate into sustainable, long-term dividend growth.

Revenue: $12.9 billion (TTM), rising steadily year after year.
Earnings per Share (EPS): $3.55 TTM, rebounding from recent acquisition-related costs.
Dividend: $0.434 per share, continuing its climb with a payout ratio comfortably below 25%.

The company’s dividend may look modest, but its growth record is strong, with double-digit hikes common in recent years. Investors can expect more of the same as earnings and cash flow expand.

Final Take — The Steady Hand in a Messy World

In an unpredictable market, it’s refreshing to find a company where performance isn’t tied to consumer confidence or economic cycles. Waste Connections turns necessity into opportunity, combining a recession-resistant business with disciplined management and reliable dividend growth.

Its focus on smaller markets, strong pricing power, and steady free cash flow give it a long runway for shareholder returns. This isn’t a flashy story — it’s a dependable one. And sometimes, that’s exactly what a dividend growth portfolio needs.

Find Other Buy and Hold Forever Stocks: Download the Dividend Rock Stars List

This dividend stock list is updated monthly. You will receive the updated version every month by subscribing to our newsletter. You can download the list by entering your email below.

This isn’t just a list of high-yield stocks—it’s a handpicked selection of Canada’s best dividend growth stocks backed by detailed financial analysis.

Monthly updates
Full dividend safety ratings
10+ Metrics with filters

Enter your email to get the latest Canadian Dividend Rock Stars List now!