Mike, Author at MOOSE MARKETS

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?

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 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

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

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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.

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.

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

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Where Canada Trades — and Dividends Grow

Every trade, listing, and market movement in Canada traces back to one place — the TMX. But beyond the flashing tickers and daily headlines, this company has built something far more enduring: a stable, cash-generating machine that fuels dividend growth year after year. For investors seeking predictability in an unpredictable market, TMX represents the steady pulse behind Canadian capitalism itself.

The Core Engine Behind Canadian Markets

TMX Group (X.TO) operates the infrastructure that keeps Canada’s markets running. It owns and manages the Toronto Stock Exchange (TSX), TSX Venture Exchange, and Montreal Exchange, while also overseeing clearing and settlement systems through CDS and CDCC. Together, these businesses handle nearly all equity and derivatives trading in Canada — an advantage few competitors can touch.

Over time, TMX has evolved well beyond the traditional exchange model. Its data and analytics divisions — including Datalinx, Trayport, and the newly acquired VettaFi — now deliver global market data and analytics to thousands of clients. More than half of TMX’s revenue comes from recurring contracts, giving it resilience that’s rare among financial infrastructure firms.

X.TO Q2 2025 results graph from its Investors Brochure.

The Investment Thesis: Stability in a Market Built on Movement

Bull Case — The Exchange That Keeps Growing

TMX has transformed itself from a cyclical exchange operator into a diversified fintech platform. Its monopoly on Canadian listings ensures a steady base of transaction and listing fees, while expanding data capabilities are driving higher-quality, recurring cash flow.

Playbook:
TMX earns revenue through trading, clearing, listings, and data. Its flagship exchanges — the TSX and MX — dominate Canadian equities and derivatives. The company’s strategy has been to expand globally through acquisitions like VettaFi and iNDEX Research, strengthening its position in the booming data and analytics space.

Growth Vectors:

Recurring data revenue now exceeds 50% of total sales, insulating TMX from volume swings.
Trayport and VettaFi have delivered double-digit growth in 2025, confirming successful integration.
Issuer services are rebounding as capital markets regain momentum.
EPS growth is projected to stay in double digits through 2026, supported by margin expansion and disciplined capital allocation.

Economic Moat:
TMX enjoys one of the strongest competitive positions in the country. Its regulatory entrenchment and control of national market infrastructure make it nearly impossible to replicate. While global exchanges compete for data and technology clients, TMX’s grip on Canadian listings and clearing systems forms a wide and stable moat for long-term investors.

Bear Case — Even Giants Can Catch the Market’s Cold

Even with diversification, TMX’s performance still depends partly on the health of equity markets. A prolonged downturn in trading or IPO activity could soften revenue growth, while operating leverage can cut into margins during weaker cycles.

Business Vulnerabilities:
TMX’s core exposure to market volumes and capital formation leaves it sensitive to investor sentiment. While recurring revenue helps, transaction-driven income remains significant — and difficult to replace if listings dry up.

Industry & Market Threats:

Capital migration risk to U.S. exchanges if domestic listings falter.
Rising competition from alternative trading systems (NEO, Nasdaq Canada, CSE) could erode share at the margins.
Continuous reinvestment in technology is mandatory to keep pace with global giants like ICE and Nasdaq.

Competitive Landscape:
TMX’s leadership in Canada is secure, but it faces indirect competition from international exchanges expanding into fintech and data analytics. Continued success depends on disciplined integration of new acquisitions and sustained innovation in data solutions.

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.

Latest News — Data Drives Another Strong Quarter

TMX Group reported a solid quarter with revenue up 15% and adjusted EPS up 21%. GAAP EPS was down 28%, reflecting a $0.14 loss per share related to foreign exchange impacts in Q2.

Organic revenue, excluding recent acquisitions such as Newsfile, iNDEX Research, Bond Indices, and ETF Stream, grew 13%, fueled by strong performance across:

Derivatives trading and clearing: +33%
TMX Trayport: +26%
Equities & fixed income trading: +18%
TMX VettaFi: +17%

This reinforces TMX’s strategy of broadening its data ecosystem and maintaining diversified growth across core and adjacent businesses.

The Dividend Triangle in Motion

TMX Group (X.TO) 5-Year Dividend Triangle chart.

TMX’s Dividend Triangle reflects a company quietly compounding shareholder value — with consistent growth in revenue, earnings, and dividends.

Revenue: $2.9 billion and growing, thanks to steady trading and expanding data operations.
Earnings per Share (EPS): $1.49 TTM, backed by recurring income and disciplined cost management.
Dividend: $0.22 per share, with a solid history of increases supported by healthy free cash flow.

Final Thoughts — Owning the Exchange Pays Off

TMX isn’t the kind of stock that will double overnight, but that’s exactly what makes it attractive to dividend growth investors. Its dominance in the Canadian market infrastructure, growing data monetization engine, and consistent free cash flow generation make it a rare blend of stability and modern innovation.

For those seeking long-term compounding, TMX offers something uniquely Canadian — a steady dividend backed by the country’s financial foundation.

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The Best Canadian Dividend Insurance Companies

When markets get choppy, insurance companies often do their best work — quietly stabilizing your portfolio while the rest of the market swings from optimism to panic. These stocks may not lead rallies, but they help investors stay invested when volatility hits.

Canadian insurers bring a unique kind of strength to a dividend growth portfolio. Their business models thrive on risk management, consistent cash flows, and disciplined capital allocation. When well-managed, they deliver the trifecta every long-term investor wants: steady earnings, sustainable dividend growth, and resilience across economic cycles.

Today, we’re looking at four of the strongest Canadian insurance companies — each with its own mix of stability, growth potential, and dividend power.

4. Manulife Financial (MFC.TO)

Investment Thesis

Manulife Financial has rebuilt its reputation since the financial crisis and now stands as a well-diversified global insurance and wealth management powerhouse. With operations in Canada, the U.S., and Asia, it benefits from both mature and high-growth markets. The company’s asset management arm oversees over CAD 1 trillion in assets, generating a steady stream of fee-based income.

Its Asian segment—now roughly 30% of total earnings—is the key growth engine. Rising middle-class populations and underpenetrated insurance markets in countries like China, Japan, and Hong Kong make this region a massive opportunity. The company’s pivot toward behavioral insurance and investment management also supports long-term profitability.

Manulife may not have a strong moat in a commoditized industry, but it has evolved into a leaner, more efficient, and more globally balanced insurer than it was a decade ago.

Manulife (MFC.TO) 5-year Dividend Triangle Chart.

Potential Risks

Manulife’s reliance on capital markets makes it more volatile than some of its peers. A downturn or sharp interest rate decline could compress investment income and returns. Its U.S. operations under John Hancock remain a weak link, with thin margins and fierce competition.

In Asia, while the long-term growth story remains intact, the company faces local competitors with deep roots and faster product innovation. The insurance business is price-driven, limiting differentiation and putting pressure on returns.

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. Great-West Lifeco (GWO.TO)

Investment Thesis

Great-West Lifeco is the definition of a steady compounder. With roots in life insurance, pension management, and asset management, it generates highly predictable cash flows. Its Empower Retirement division is now the #2 U.S. retirement services provider, expanding GWO’s reach into one of the world’s largest pension markets.

The company’s strategy emphasizes fee-based revenue and cost discipline. Recent acquisitions in the U.S. and Japan add diversification, while higher interest rates boost returns on investment portfolios. Its strong connection to Power Corporation provides both stability and a deep distribution network.

While not a fast grower, Great-West Lifeco offers stability and consistent dividend growth—an ideal fit for conservative dividend investors.

Great-West Lifeco (GWO.TO) 5-year Dividend Triangle Chart.

Potential Risks

The flip side of GWO’s stability is limited growth potential. With only 20% of revenue outside North America and Europe, it lacks exposure to high-growth emerging markets. Fee compression in asset management and regulatory capital requirements could also weigh on margins.

Insurance products are largely commoditized, and GWO competes in mature markets with intense pricing pressure. While its cost structure is efficient, sustaining above-average ROE will require continued discipline and favorable market conditions.

2. Sun Life Financial (SLF.TO)

Investment Thesis

Sun Life combines traditional insurance with a powerful asset management and group benefits platform. With over CAD 1 trillion in assets under management, it earns nearly half its profits from wealth and asset management—a steady, fee-based source of income that cushions against insurance volatility.

Its group benefits and dental insurance operations give it scale and recurring cash flow, particularly after acquiring DentaQuest, making it the #2 dental benefits provider in the U.S. Sun Life’s strength lies in diversification: Canada provides steady profits, Asia offers long-term growth potential, and its U.S. business adds scale.

The company has positioned itself as a balanced player in an unpredictable industry, with strong capital discipline and an eye toward gradual, sustainable growth.

Sun Life Financial (SLF.TO) 5-year Dividend Triangle Chart.

Potential Risks

Sun Life’s results are highly tied to interest rate movements and financial markets. A sustained decline in rates would pressure margins and profitability. In addition, its international operations—especially in Asia—remain smaller than Manulife’s, limiting its global growth potential.

The company also operates in an increasingly commoditized industry where pricing remains a key battleground. Asset management, while profitable, faces fee compression from low-cost giants like BlackRock and Vanguard.

A Steady Pace Toward Dividend Growth

🔗 Full Sun Life Analysis

1. Intact Financial (IFC.TO)

Investment Thesis

Intact Financial is the heavyweight of Canada’s property and casualty (P&C) insurance industry. Unlike its life insurance peers, Intact’s strength lies in underwriting excellence and data-driven pricing. Through acquisitions like RSA Insurance (U.K./Canada) and OneBeacon (U.S.), Intact has become a diversified, international P&C leader.

It continues to grow organically, targeting 10%+ annual growth in net operating income per share (NOIPS). The company’s multichannel approach—through BrokerLink, Belairdirect, and commercial lines—spreads risk and enhances resilience.

Intact’s profitability metrics remain best-in-class, supported by AI-based risk modeling and cost efficiency. Even as catastrophic losses rise, its underwriting discipline ensures steady returns.

Intact Financial Group (IFC.TO) 5-year Dividend Triangle Chart.

Potential Risks

The biggest threat to Intact comes from nature itself. Catastrophe losses from floods and wildfires reached $1.5 billion in 2024, and the trend isn’t slowing. These unpredictable events make quarterly results volatile.

Additionally, insurance regulation—especially in auto insurance markets like Ontario—can cap pricing flexibility. In the U.S. and U.K., Intact faces fierce competition and integration challenges, especially as it scales its commercial footprint.

Despite these challenges, Intact’s data advantage and risk management culture keep it a step ahead of its peers.

Final Thoughts – The Pillars of Dividend Stability

Canadian insurance companies won’t be the most exciting holdings in your portfolio—but they might be among the most dependable. They bring balance when growth stocks stumble, and they keep cash flow rising even through recessions and market noise.

Here’s how they stack up:

Intact Financial – Best-in-class underwriting and risk management.
Sun Life – Diversified with strong asset management exposure.
Great-West Lifeco – A defensive dividend compounder.
Manulife – Global reach with a powerful growth engine in Asia.

Each of these insurers plays a different role, but together they demonstrate a straightforward truth: dividend growth thrives on financial discipline—and few sectors embody that better than Canadian insurance.

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

Navigating Complexity in the Supply Chain

Investors often overlook smaller software firms because they lack the scale of global tech giants. Yet, some carve out profitable niches by focusing on where complexity and mission-critical operations create durable client relationships. That’s exactly the case here: a Canadian software provider turning supply chain headaches into sticky, recurring revenue streams.

A Software Specialist with Global Reach

Tecsys Inc. (TCS.TO) is a Canadian small-cap software company that develops and markets enterprise-wide supply chain management solutions. Its offerings cover warehouse management, transportation logistics, point-of-use distribution, and order management.

The company’s solutions are delivered through its Elite Enterprise, Elite Healthcare, Omni Retail, and Streamline platforms, supported by its Itopia infrastructure. Tecsys also provides consulting, training, cloud services, and customer support.

With more than 1,000 clients worldwide, Tecsys has built particular strength in healthcare, retail, and distribution verticals—industries where managing complexity can’t be left to generic systems. Over 50% of revenue now comes from recurring contracts, underscoring the resilience of its model.

Also, keep in mind that TCS revenues are generated in the U.S. (72%), Canada (18%), and the rest of the world (10%), primarily in Europe.

Tecsys Global Reach and Financial Strength per its FY2026 Q1 Investors Presentation.

Why Investors Should Pay Attention

Bull Case – Growth Through Healthcare and SaaS

Tecsys operates in a lucrative niche. Its software helps hospitals, retail chains, and industrial firms manage complex distribution networks. These systems are mission-critical, making customer churn rare once the software is in place.

Recurring revenue strength: SaaS and maintenance now represent nearly 60% of total revenue, creating visibility for investors.
Healthcare pipeline: Healthcare remains the standout vertical, with a 20% YoY pipeline increase and multiple new Integrated Delivery Networks (IDNs) signed. Hospitals are notoriously sticky clients due to long implementation cycles.
SaaS migration: Cloud transitions are accelerating. Management expects SaaS revenue to grow by 30% in fiscal 2025, with total revenue climbing toward $196.7M by 2026.
Financial flexibility: Tecsys has no long-term debt and holds a net cash position of about $21M, giving it room to reinvest in growth or acquisitions.

This combination of recurring income, industry focus, and conservative balance sheet makes Tecsys an appealing small-cap growth play.

Bear Case – Small Fish in a Big Pond

As promising as the growth story is, Tecsys faces challenges tied to its size and market positioning.

Execution risk: With a small market cap, earnings and cash flow can swing quarter-to-quarter depending on project timing. EPS has been volatile, as the dividend triangle shows.
Expense pressures: Inflation and tight labor markets have increased compensation costs. Talent retention in particular is critical for keeping service delivery on track.
Competition: Global giants like Oracle and SAP bundle supply chain solutions into their enterprise packages, undercutting Tecsys on pricing. The company must keep innovating to defend its niche.
Macro exposure: While healthcare demand is resilient, clients in retail or industrial sectors may cut IT budgets during slowdowns, delaying or canceling projects.

In short, Tecsys must execute flawlessly and remain innovative to compete with larger players while preserving its small-company agility.

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Latest News: A Quarter of Shifts

On September 10, 2025, Tecsys reported a mixed quarter:

Revenue: Up 9% year-over-year.
EPS: Flat, reflecting expense pressures.
By segment:
- SaaS revenue +25% to $19.14M
- Professional services +20% to $16M
- Maintenance & Support -10% to $7.86M
- License revenue -90% to $0.09M
- Hardware -29% to $2.84M

The story is clear: Tecsys is steadily transitioning away from on-premise licenses and hardware toward SaaS and services. This transition temporarily flattens margins but is expected to drive stronger recurring cash flows in the long run.

The Dividend Triangle in Action: Consistent Increases

Tecsys (TCS.TO) 5-year Dividend Triangle chart.

Dividend growth investors need to understand that Tecsys is not a high-yield play. The yield is modest, but the company has built a habit of consistent—if cautious—dividend increases. Here’s how the dividend triangle looks:

Revenue: Solid upward trend, now at $177.6M, reflecting SaaS migration and customer growth.
Earnings per Share (EPS): Volatile, sitting at $0.30 TTM. Lumpy results come with the territory for small-cap tech.
Dividend: Steady growth from $0.07 to $0.085, showing management’s willingness to reward shareholders even as the company reinvests in growth.

For income investors, Tecsys’s dividend won’t pay the bills, but it does send a clear message: management is confident in long-term cash generation.

Final Take: Small but Mighty in Its Niche

Tecsys isn’t about blockbuster growth or outsized dividends. Instead, it’s a story of a focused software firm with sticky customers, a clean balance sheet, and a strong pipeline in healthcare—a sector where reliability trumps cost-cutting.

The risks are real: small size, lumpy earnings, and heavyweight competitors. Yet the company’s recurring revenue base, SaaS migration, and deep industry expertise make it a worthwhile watchlist candidate for dividend growth investors seeking diversification into Canadian tech.

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The Dividend Rock Star List is updated monthly with over 350 screened dividend stocks, complete with safety scores and valuations.