Mike, Author at MOOSE MARKETS

Best Monthly REITs 2025

Retirement’s knocking — but can your income keep up? If you’re dreaming of monthly paychecks without the headaches of tenants or property repairs, Canadian REITs could be your answer.

Most dividends come quarterly. But some REITs? They pay monthly, giving you that steady stream of income retirees love.

What makes REITs great monthly payers?

While most companies pay dividends quarterly, many Canadian REITs opt for monthly distributions. That’s because their rental income arrives monthly — and they’re happy to share it.

Think of REITs like owning a rental empire — without the late-night repair calls. These trusts collect rent monthly from dozens (or hundreds) of properties and pass that income straight to you.

Monthly distribution REITs list

At DividendStocksRock, we track over 1,200 dividend-paying stocks. Only 65 Canadian companies pay a monthly dividend from this list, and over half (34) are REITs.

Want to explore all your monthly income options? Here’s our complete list of Canadian REITs that pay monthly dividends, including their yields and dividend growth history.

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Monthly distributions can feel safe — until they’re not. High-yield funds often cut payouts when you need them most.

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Our Top 3 Monthly REITs

Some of the best Canadian REITs are paying a monthly distribution. We picked three standouts from over 30 monthly-paying REITs based on yield stability, tenant diversification, debt or payout ratios, and long-term growth.

Granite REIT (GRT.UN.TO)

Investment Thesis: Diversified, Disciplined, and Growing

Granite REIT has transformed from a single-tenant industrial landlord into a diversified, growth-oriented real estate investment trust.

Once dependent on Magna International for 98% of its revenue, that figure has dropped to 26.7% as of August 2024. The trust now owns 143 properties across seven countries, with a growing tenant base including Amazon. Backed by a BBB/BAA2 investment-grade rating and a low FFO payout ratio (~70%), Granite offers a 4–5% dividend yield with inflation-beating growth potential.

Strategic acquisitions and developments aligned with e-commerce and supply chain trends continue to fuel expansion and de-risk the portfolio.

Potential Risks: Magna Still Matters

Despite Granite REIT’s successful diversification, key risks remain—most notably its ongoing dependence on Magna, which still accounts for over a quarter of its revenue. Any disruption in Magna’s business could impact Granite’s financial stability.

Broader economic downturns could also reduce demand for industrial space, leading to lower occupancy and rent collections. Rising interest rates present a further challenge, potentially increasing borrowing costs and pressuring profit margins.

The industrial REIT space is also becoming increasingly competitive, with rivals like Dream Industrial and Stag REIT actively pursuing premium tenants and properties, requiring Granite to enhance its value proposition continuously.

CT REIT (CRT.UN.TO)

Investment Thesis: High Yield, Low Risk, and Long Leases

CT REIT is a stable, income-focused real estate investment trust that derives 92% of its rental income from Canadian Tire and its associated brands.

With a robust 6.3% dividend yield and a conservative AFFO payout ratio (~74–75%), it offers reliable monthly income backed by long-term, triple-net leases. The REIT owns 375 properties across Canada and continues to grow through acquisitions, intensifications, and development projects.

While its fortunes are tied closely to Canadian Tire’s performance, the trust benefits from high occupancy, mission-critical assets, and strong pricing power on renewals—making it an appealing choice for conservative, yield-seeking investors.

Potential Risks: When Your REIT Depends on One Retailer

CT REIT’s stability comes with concentrated risk—over 90% of its leasable area is tied to Canadian Tire.

This tight dependency means the REIT’s fortunes rise and fall with its anchor tenant. While Canadian Tire has been resilient, any strategic shift or decline in its performance could have ripple effects on CT REIT.

The trust also faces exposure to interest rate risk due to its $3B+ in debt and operates many properties in secondary markets, which are more vulnerable during economic downturns.

Despite solid management and stable cash flows, CT REIT lacks diversification, making it a high-conviction bet on a single retailer.

Canadian Apartment Properties REIT (CAR.UN.TO)

Investment Thesis: Stable Income with Rental Growth Upside

Canadian Apartment Properties REIT (CAPREIT) is a leading residential REIT with over 48,000 rental suites across Canada and the Netherlands.

Known for its inflation-resistant cash flows and strong occupancy (97.5% in Q4 2024), CAPREIT offers steady income and long-term growth potential. It has delivered high single-digit organic rent growth while engaging in capital recycling—selling nearly $1 billion in Canadian assets in 2024 to optimize its portfolio.

With strategic property acquisitions, strong demand in rental housing, and exposure to international markets, CAPREIT is well-positioned for continued performance amid a tight housing market and rising rental rates.

Potential Risks: From Strong Rents to Squeezed Margins

While CAPREIT remains a top residential REIT, it faces mounting headwinds from rising costs, regulatory risk, and economic uncertainty.

Same-property NOI growth slowed to 3.4% in Q4 2024, as maintenance and repair expenses climbed. A potential shift in Canadian immigration policy could weaken rental demand, while high interest rates continue to pressure REIT valuations and acquisition strategies.

CAPREIT also competes with other major residential REITs and faces new risks through its European exposure, including currency volatility and unfamiliar regulatory landscapes.

Future performance will depend on its ability to maintain occupancy, control costs, and adapt to a changing macro environment.

Each REIT has strengths — whether it’s Granite’s industrial edge, CT’s retail consistency, or CAPREIT’s rental growth. Consider what fits your income goals and risk comfort.

Those REITs are great, but there’s more!

Monthly REITs are a powerful tool — but they’re not the whole picture. Relying solely on high yields can be risky, especially if payouts get slashed.

That’s why we built ‘Dividend Income for Life’ — a strategy that balances immediate income with long-term stability.

Discover the Dividend Strategy Built for Real, Long-Term Income

If you’re counting on monthly distributions to fund your retirement, there’s something you need to know: many of them aren’t sustainable. High yields can vanish overnight with a dividend cut — leaving your income and peace of mind at risk.

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✅ How to build a portfolio that grows your cash flow and preserves your capital
✅ Real data: how dividend growers crushed high-yield stocks over the last decade
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Canadian Banks Ranking 2025

Think all Canadian banks are the same? Think again.

Your choice could mean the difference between market-beating returns and lagging.

A common belief is that all Canadian banks perform similarly because of the country’s strong banking system. Since the 2008 financial crisis, each member of the Big Six (Royal Bank, TD Bank, ScotiaBank, BMO, CIBC, and National Bank) has taken a different path.

They all benefited from the banking oligopoly in Canada to fund new growth vectors. Fifteen years later, picking the wrong bank will leave much money on the table.

While most have outperformed the Canadian stock market for 5, 10, 15, and probably 25 years, as of March 2025, five of six had outperformed the market, and four also outperformed the ZEB.TO equal weight banks ETF over 10 years.

In other words, two are lagging. So which one is best this year and for decades to come?

Canadian Banks Ranking 2025

#6 ScotiaBank (BNS.TO)

Investment Thesis: International Edge – A Double-Edged Sword

Scotiabank differentiates itself from Canada’s Big Six banks with its extensive international presence, particularly in Latin America. While this provides higher long-term growth potential, it also introduces volatility and risk.

The bank has streamlined its global footprint, focusing on key markets like Mexico, Peru, and Chile. However, it has consistently struggled to outperform its peers.

Growth will depend on optimizing international operations, expanding wealth management, and navigating economic challenges. While Scotiabank benefits from Canada’s highly regulated banking system, its international moat is narrower than competitors, limiting its pricing power abroad.

Potential Risks: Volatility Ahead

BNS’s international presence brings unique risks, including exposure to economic downturns, political instability, and currency fluctuations.

The bank has faced rising provisions for credit losses (PCLs), an inefficient cost structure, and challenges in improving profitability.

Domestically, Scotiabank remains vulnerable to a housing market correction and economic slowdown. Broader macroeconomic risks, such as rising interest rates and trade tensions, add further uncertainty. Despite its international reach, Scotiabank has struggled to achieve superior financial performance compared to its peers, lacking dominant market share in key regions and facing stiff competition in wealth management.

The ONLY List Using the Dividend Triangle

After this first example, you may wonder how I was able to differentiate these positions.

I analyze companies according to their dividend triangle (revenue, earnings, and dividend growth trends), combined with their business model and growth vectors. 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.

#5 Canadian Imperial Bank of Commerce – CIBC (CM.TO)

Investment Thesis: A Safe Bet or a Slow Grower?

CIBC shows a strong focus on domestic retail and commercial banking.

Unlike peers with extensive international exposure, CIBC has pursued U.S. expansion to diversify its revenue streams, particularly in wealth management. However, integrating private banking remains a challenge.

The bank trades at a discount due to its slower growth trajectory, making it appealing to income-focused investors.

Its digital banking platform, Simplii Financial, presents an opportunity for long-term customer retention, while reliance on mortgage lending poses risks in economic downturns. While benefiting from Canada’s banking oligopoly, CIBC lacks the competitive moat of more diversified peers.

Potential Risks: Too Focused on Canada?

CIBC faces significant risks due to its heavy reliance on the Canadian housing market, making it more vulnerable than its peers to rising interest rates and a potential real estate downturn.

The bank’s high exposure to uninsured mortgages could increase loan loss provisions in an economic slowdown. Its domestic concentration further exposes it to Canadian economic cycles, regulatory changes, and potential recessions.

Among the Big Five, CIBC has underperformed in total returns and future growth expectations, with its strong dividend yield coming at the cost of lower capital appreciation. While its U.S. expansion aims to diversify risk, its mortgage-heavy model remains a key weakness.

#4 TD Bank (TD.TO)

Investment Thesis: Canada’s Most American Bank

Toronto-Dominion Bank (TD) stands out due to its strong retail banking franchise and significant U.S. presence.

With the largest branch network of any Canadian bank in the U.S., TD has historically relied on acquisitions and organic expansion for growth. However, recent regulatory scrutiny and an anti-money laundering investigation in the U.S. have limited its expansion opportunities.

While TD benefits from a stable Canadian business, rising interest rates present both an opportunity for higher margins and a risk of loan defaults.

Potential Risks: Can TD Overcome Its U.S. Setback?

TD Bank faces mounting risks due to its U.S. anti-money laundering investigation, which led to a multibillion-dollar fine and asset growth restrictions on its U.S. operations.

This directly impacts TD’s long-term expansion strategy, forcing it to shift focus from aggressive growth to regulatory compliance and operational efficiency.

The bank also remains exposed to the Canadian housing market, where rising interest rates could increase mortgage defaults. Broader economic risks add further uncertainty, including trade tariffs and slowing growth.

While TD’s strong brand and market position remain advantages, regulatory constraints could allow competitors to expand more aggressively, putting TD at a disadvantage.

#3 Bank of Montreal – BMO (BMO.TO)

Investment Thesis: Capital Markets, Wealth Management & U.S. Banking

BMO is a diversified financial institution with a strong presence in Canada and the U.S., generating about one-third of its revenue from U.S. operations.

Its strategic expansion, particularly through the 2023 acquisition of Bank of the West, strengthens its cross-border footprint.

BMO has also been a leader in wealth management and ETFs, leveraging these segments for stable fee-based revenue. However, rising provisions for credit losses (PCLs), integration challenges, and exposure to capital markets introduce volatility to its earnings.

Potential Risks: Can It Manage Rising Risks While Competing with Industry Giants?

BMO’s reliance on wealth management and capital markets for growth exposes it to heightened risk, particularly during periods of economic uncertainty.

Rising provisions for credit losses (PCLs) have significantly impacted earnings, partly driven by the challenges of integrating its Bank of the West acquisition.

The bank faces competitive pressures in traditional banking and the ETF space, where BlackRock (BLK) remains a dominant force.

Additionally, macroeconomic headwinds—including trade tensions and potential recession risks—could lead to earnings volatility. While BMO’s U.S. expansion provides diversification, it also increases exposure to higher credit risks compared to more domestically focused Canadian banks.

#2 National Bank (NA.TO)

Investment Thesis: Western Expansion and Global Investments

NA is the most domestically focused of the Big Six banks, with 73% of its revenue generated in Canada, primarily in Quebec.

Its recent $5B acquisition of Canadian Western Bank is set to expand its presence in Western Canada, creating cross-selling opportunities, particularly in private banking.

The bank has also diversified beyond traditional banking, with significant growth in capital markets, wealth management, and international investments, including ABA Bank in Cambodia and Credigy in the U.S.

Potential Risks: Growing Challenges

National Bank’s strong performance comes with significant risks, primarily due to its heavy reliance on Quebec, which accounts for about 50% of its revenue. This geographic concentration makes it more vulnerable to regional economic downturns than its larger, more diversified peers.

This also explains why it has fallen second this year, considering the economic uncertainty linked to political tensions between Canada and the U.S.

The bank also takes on higher risk through its international investments in Cambodia (ABA Bank) and alternative lending in the U.S. Rising provisions for credit losses, particularly from ABA Bank, add further uncertainty.

Additionally, its exposure to financial markets introduces earnings volatility, while its smaller scale puts it at a competitive disadvantage against Canada’s largest banks.

I discussed NA’s current challenges in more depth in the Q1-2025 earnings review video. You can then fully grasp why it now holds the second position while remaining one of the best banks for investors.

#1 Royal Bank – RBC (RY.TO)

Investment Thesis: Built for Global Growth

RBC is the largest Canadian bank by market capitalization, with a well-diversified revenue model spanning personal and commercial banking, wealth management, insurance, and capital markets.

Over 50% of its revenue now comes from insurance, wealth management, and capital markets, reducing dependence on traditional banking. RBC’s focus on expanding these segments post-2008 has positioned it well for stable cash flows, market-driven profitability, and global growth.

While Canadian banking regulations create high barriers to entry, RBC’s strong international presence enhances its resilience. Its brand strength, extensive client base, and broad service offerings make it a dominant force in the financial sector.

Potential Risks: Housing, Regulation, and Market Volatility

Despite its diversified business model, RBC faces key risks, including exposure to the Canadian housing market, regulatory constraints, and economic downturns, just like any other bank.

Rising interest rates could increase mortgage defaults, impacting its loan portfolio and necessitating higher provisions for credit losses (PCLs).

A potential recession could slow lending activity and increase default rates in both personal and commercial banking. Additionally, regulatory changes could limit profitability, while competition from both domestic banks and global financial institutions pressures RBC to innovate and adapt continuously.

All things considered, it remains the best Canadian Bank option for dividend growth investors.

Find Other High-Quality 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!

Final Thoughts: Don’t Overdo It!

I’m a foodie, and I love cooking. I particularly like adding spices to get the right taste in a good recipe.

But one thing I don’t do when I cook is to open my cabinet and select sea salt, pink salt, lava salt, Kosher salt, Celtic salt, smoked salt, and a pinch of Fleur de Sel all for the same recipe.

You probably know why, as the taste would very likely be disgusting.

Like seasoning in a meal, a little exposure to Canadian banks can enhance your portfolio. But overdoing it? That could leave a bad aftertaste. Choose wisely.

Buy and Hold Forever: Top Canadian Stocks for Lifetime Returns

What if you could invest once and never worry again?

That’s the power of forever stocks—companies so strong and reliable that you can buy them, hold them for decades, and sleep soundly at night.

Let’s be clear, my selections aren’t based on timing; I’m not saying that they are great buys right now, but rather that I’d buy any of them and that, if I couldn’t monitor them quarterly as I do (and you should too), I wouldn’t worry much.

Forever stocks share several of these qualities:

Diversification
- Forever stocks are companies that diversify to reduce risk by not relying solely on one market or product for revenue.
Market leaders
- Forever stock companies often dominate their industry or market segment, enjoying a significant market share and strong competitive advantages.
Economies of scale
- The average cost per unit decreases as a company produces more products or services.
Predictable cash flow
- Being able to anticipate consistent and steady incoming cash over time reasonably is crucial for a company’s financial health and sustainability.
Stable or sticky business model
- A stable business operates consistently and predictably; it found a formula for generating revenue and maintaining profitability.
- A sticky business, on the other hand, aims for customer loyalty and retention, and repeat business.
Essential products or services
- Selling essentials—food, medical supplies, energy, communication services, transportation, etc.— produces relatively stable demand and revenue stream, as well as repeat business due to customer loyalty and resilience.
Multiple growth vectors
- Growth vectors are paths to expand business, increase revenue, and enhance market presence.
Long dividend growth history
- Yearly increases over decades mean the company ticks the boxes for many of the qualities described earlier.

This list is partial; clearly, other contenders could be on it. I have covered this part more in-depth on The Dividend Guy Blog.

Brookfield Corporation (BN.TO) – Financials

Brookfield skyrocketed with more than 50% return in 2024. I think there is more to come!

Brookfield is amongst the most prominent players in alternative asset management. As the stock market looks overvalued, many investors will turn toward alternative assets to generate profits and hedge their bets. Those long-term assets require patient capital and a high level of expertise. Brookfield is in a perfect position to provide this service to investors.

Even better, BN invests its capital in its many projects. Therefore, it can double-dip by charging a fee on managed capital and making capital gains when selling assets.

The ONLY List Using the Dividend Triangle

After this first example, 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.

National Bank (NA.TO) – Financials

The bank seems to have done everything right over the past 15 years.

This significant transformation converted a small provincial bank into a serious player in capital markets and the private wealth industries.

The Bank is expected to complete a key acquisition of Canadian Western Bank in 2025, which will bring more capital onto its balance sheet (supporting capital market lucrative operations), more synergies (high cross-selling opportunities between CWB’s commercial clients and private wealth management), and a good presence in Western Canada.

NA is also doing very well in Cambodia (Aba Bank) and through its door into the U.S. (Credigy).

Note that National Bank (NA.TO) is also a Canadian Dividend Aristocrat.

Dollarama (DOL.TO) – Consumer Discretionary

DOL has built a strong brand, and its business model (aimed at low-value items) is an excellent defensive play against the e-commerce threat over the retail business.

As consumers’ budgets are tight, DOL appears to be a fantastic alternative for many goods. Dollarama has consistently increased same-store sales and opened new stores.

Introducing many products under its “home brand” increases the company’s margin. DOL introduced a new price point of $5 for many items, adding flexibility and pricing power.

DOL.TO 10-year dividend triangle: Revenue, EPS, and Dividend Growth.

Alimentation Couche-Tard (ATD.TO) – Consumer Staples

I’ve looked at grocery stores, but they don’t seem to offer many growth opportunities. Don’t get me wrong, they are great companies, but I think ATD will do better.

Things are changing quickly around the 7-Eleven deal. ATD has tried to get to the negotiation table to acquire 7-Eleven for a few months. The Japanese company is trying all means to stay Japanese. The latest chatter was that the son’s founder would repurchase it and make it private. The market liked the idea, and the ATD share price rose again. This story isn’t over yet, one way or another.

For 2025, I see ATD striking another acquisition.

After all, it’s in its DNA. If it’s not 7-Eleven, it will be another chain (maybe Casey’s?… it tried to acquire CASY in 2010). ATD must gain more expertise in growing organically through the sale of ready-to-eat and fresh produce. This is how they can mitigate the impact of slowing fuel and tobacco sales over the next 10-20 years.

Alimentation Couche-Tard (ATD.TO) is another Canadian Dividend Aristocrat part of this list.

Canadian Natural Resources (CNQ.TO) – Energy

CNQ is a rare beast in its environment that has increased dividends for 25 consecutive years. Yes, it even increased its payouts while everybody was on hold or cutting distributions in 2020.

This raises the question: Why is CNQ “oil price resistant”?

The company is sitting on a large reserve of cheap oil. According to management, CNQ is profitable, with an oil price per barrel of around $35-$40. This enables the company to manage production and capex with greater flexibility. They can then slow down CAPEX when the oil price is low and produce less. When we are in “full oil bull mode”, CNQ bolsters CAPEX and boosts production generating maximum cash flow. This is precisely what just happened when CNQ dropped its debt and now focuses on rewarding shareholders with share buybacks and dividend increases.

To be clear, I don’t see CNQ as a super-powered growth stock for the future. However, with a yield above 4% and a resilient business model, that’s the type of business that will either be very good in your portfolio or will go back into hibernation mode, paying a secure dividend. In both scenarios, you can be a winner in the long run.

Waste Connections (WCN.TO) – Industrials

If you are looking for a beast in the industrial sector, you should probably look toward the waste management industry.

Waste Connections has refined its expertise in acquiring and integrating smaller players in the same industry. Its business model is recession-proof, as solid waste is a given regardless of the economic cycle.

I also like the fact that WCN offers a recurring service and is fully integrated. Management has been adept at integrating their acquired companies. Therefore, the business is not only growing but also becoming more profitable.

The company has the size to enjoy the resulting economies of scale. Its dividend payment is low, but its dividend growth is strong.

WCN.TO 10-year dividend triangle: Revenue, EPS, and Dividend Growth. — DOL.TO 10-year dividend triangle: Revenue, EPS, and Dividend Growth.

CCL Industries (CCL.B.TO) – Materials

Finding an international leader with a well-diversified business based in Canada is rare.

Through the significant acquisition of business units from Avery (the world’s largest supplier of labels) in 2013, the company has set the tone for several years of growth. Bolstered by its previous successes, CCL also bought Checkpoint, a leading developer of RF and RFID, and Innovia in the past few years and announced more acquisitions in 2021.

The company can still generate organic growth (roughly 4-5%) on top of its growth through acquisitions.

Granite (GRT.UN.TO) – Real Estate

Granite is a very frustrating REIT to hold.

I love the investment thesis, which includes the strong need for industrial properties, GRT’s ability to grow its business while growing FFO per unit and distribution increases intact, and the high occupancy rate. The financial metrics back this investment thesis, such as revenue, funds from operations, FFO per unit, payout ratio, and occupancy rate, all look good.

Why is GRT frustrating to hold?

Because it simply doesn’t get any love from the market. Despite its good numbers, GRT lags the market and fails to generate positive returns. This is among the rare REITs exhibiting AFFO per unit growth while issuing more units to finance growth.

Fortis (FTS.TO) – Utilities

Fortis invested aggressively over the past few years, resulting in solid growth from its core business.

Investors can expect FTS’ revenues to grow as it expands. Bolstered by its Canadian-based businesses, the company has generated sustainable cash flows, leading to four decades of dividend payments.

The company’s five-year capital investment plan is approximately $25 billion between 2024 and 2028, $2.7 billion higher than the previous five-year plan. The increase is driven by organic growth, reflecting regional transmission projects for several business segments. Only 33% of its CAPEX plan will be financed through debt, while 61% will come from cash from operations. Chances are that most of its acquisitions will happen in the U.S.

We also like the company’s goal of increasing its exposure to renewable energy from 2% of its assets in 2019 to 7% in 2035.

FTS.TO 10-year dividend triangle: Revenue, EPS, and Dividend Growth.

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!

Canadian Dividend Rock Stars List

I used to think that dividend stocks with a yield lower than 3% were worthless. Two decades of investing proved me wrong!

The Canadian Rock Stars List is a selection of the safest dividend stocks in Canada, identified through a rigorous screening process.

Unlike traditional high-yield lists, this selection combines dividend growth, financial strength, and credit stability to determine the best long-term holdings for investors seeking both income and growth.

Dividend Growth Investing = Safe Investing, More Money, Less Stress

“When you have confidence, you can have a lot of fun. And when you have fun, you can do amazing things.”

~Joe Namath

My entire portfolio is invested in dividend growth stocks.

Some holdings act as fixed income, offering a stable dividend yield and being able to weather market storms. Some others are my growth equity, providing lower yields but strong dividend growth and stock price appreciation potential.

Combining various dividend growers will create a balance where your portfolio will help you retire stress-free.

Even Vanguard—a pioneer in ETF investing—conducted studies on recent market history and concluded that dividend growers are among the best-performing assets.

Performance of dividend-oriented equity stategies figure by Vanguard — Performance of dividend-oriented equity strategies figure by Vanguard.

According to Vanguard’s study over these 20 years, dividend growth stocks not only beat the market, but they did it with less volatility.

While dividend growers usually give investors less volatility, you will still go through challenging periods where your favorite holdings will show red numbers. This is where you may start losing confidence and wondering if it would be appropriate to cash your profits and protect your capital.

The Ultimate Safe List to Get Dividend Growth Stock Ideas

To help you build a solid portfolio with dividend growth stocks, I have created the Canadian Rock Stars List, showing about 300 companies with growing trends.

You can read on to understand how it is built and why it’s the ultimate list for Canadian dividend investors, or you can skip to the good stuff and enter your name and email below to get the instant download in your mailbox.

How Has the Canadian Rock Stars List been Built?

This Canadian dividend stocks list has been created with the help of our investment membership; Dividend Stocks Rock. The market will keep throwing you curveballs, so let’s make sure you don’t whiff on them.

We have a clear strategy: we focus on dividend growth stocks.

We handpick companies showing a strong dividend triangle (revenue, earnings, and dividend growth trends) and make sure we understand their business model. Since our model is easy to understand and we know why we use it, we never doubt ourselves.

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.

Here’s how we select the best Canadian dividend stocks:

Revenue & Earnings Growth—Minimum 1% annualized growth over 5 years (adjusted for market cycles).
Dividend Growth—Minimum 5% annual dividend growth over 5 years.
Financial Strength—We use Refinitiv’s StarMine Credit Score to assess a company’s ability to handle debt and maintain dividends. It ranks a company’s 1-year default probability from 1-100, with higher scores indicating lower bankruptcy risk.
Value Analysis—We integrate the StarMine Value Score and analyze six valuation metrics to avoid overpaying. It ranks stocks (1-100) based on their valuation, with higher scores indicating better value. It evaluates six key metrics: EV/Sales, EV/EBITDA, P/E, Price/Cash Flow, Price/Book, and Dividend Yield.
ESG Considerations—The Refinitiv ESG Combined Score evaluates a company’s Environmental, Social, and Governance (ESG) performance, factoring in reported data and controversies. A higher score (1-100) indicates more substantial corporate responsibility, while legal or ethical issues can lower a company’s rating.

It’s a stronger list than the dividend aristocrats, as we combine various metrics on top of dividend growth.

By filtering the market to find Canadian stocks showing growing sales, earnings, and dividends, we are convinced we can pick among the best Canadian dividend stocks, period.

The Dividend Triangle is key to identifying safe Canadian stocks

With a smart combination of three metrics, you’ll be able to pick the best stocks from our list. You can quickly identify safe investments using the dividend triangle:

Revenues

A business is not a business without revenues.

What is the difference between a company with growing revenues versus a company showing stagnating results? Companies with several growth vectors will ensure consistent sales increases year after year. I’m a big believer in “offense is the best defense.” Whenever we are about to face a recession, I want to make sure I have companies that have shown past revenue growth.

This is an excellent indicator that their business model is doing well and that they won’t enter a recession in a position of weakness.

Earnings

You cannot pay dividends if you don’t earn money.

Then again, this is a straightforward statement. Still, if earnings don’t grow strongly, there is no point in thinking that the dividend payment will increase indefinitely. Keep in mind that the EPS is based on a GAAP calculation. This makes EPS imperfect, as accounting principles are not aligned with cash flow.

This means you are better off looking at the EPS trend over 3, 5, and 10 years. Use an adjusted EPS that discounts those one-time events revealed by the company to have a clear view of what is happening. Some companies could “play around” with earnings for a year or two, but you can’t create a trend out of thin air.

Dividends

Finally, dividend payments are the *obvious* backbone of any dividend growth investing strategy. But I don’t focus on the actual dollar amounts or the yields because we focus solely on dividend growth.

Dividend growers show confidence in their business model.

This is a statement claiming that the company has enough money to grow its business and reward shareholders simultaneously. It also tells you that the business can pay off its financial obligations and invest in new projects (CAPEX). No management team will increase its dividend if it lacks the cash to run its business.

The Dividend Rock Stars List: The ONLY List Using the Dividend Triangle

The dividend triangle is an exclusive concept developed at Dividend Stocks Rock (DSR).

While many seasoned investors use these metrics in their analysis, no one has created a list based on them before.

Don’t waste any more time with complex strategies and dozens of metrics duplicating each other: focus on quality and download the list with filters now.

What Does a Strong Dividend Triangle Look Like?

Putting those metrics into a stock screener is one thing, but knowing what to do with them is another.

The problem with a simple stock screener is that it will give me the 3-year or 5-year annualized growth, but I can’t see the trend.

A strong Dividend Triangle should show steady revenue, earnings, and dividend growth over time. The trend over the past five years for each metric is long enough to show the current tendency and highlight some jumps or drops I must investigate.

Below is an example of two dividend stocks:

🟢 Strong Dividend Triangle Example (National Bank of Canada – NA.TO)

Revenue: Consistent annual growth of 5%+
EPS: Follows revenue growth, ensuring profitability
Dividend Growth: Resumes steady increases after economic downturns

A decrease in earnings during the pandemic led to a pause (forced by regulators) in dividend growth. Now that the pandemic is behind us, National Bank is back on the Rock Stars list with a strong dividend growth potential.

🔴 Weak Dividend Triangle Example (Algonquin Power & Utilities – AQN.TO)

Revenue: Inconsistent growth due to high debt and acquisitions
EPS: Declining due to rising borrowing costs
Dividend Growth: ❌ Cut after financial struggles in 2022 and again in 2024

Download the Exclusive Dividend Rock Stars List

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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.

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✅ 10+ Metrics with filters

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Canadian Dividend Aristocrats 2025

We look at the Canadian Dividend Aristocrats for 2025, what they are, who they are, and why they matter to dividend growth investors. See some of our favorite aristocrats and why we like them, and learn where to find stocks that are right for you.

What’s a Canadian Dividend Aristocrat?

It’s a Canadian company showing five consecutive years with a dividend increase. Aristocrats are solid companies with a robust balance sheet.

Why do they matter to you?

Dividend growers tend to outperform the market over a long period, and with less volatility. Dividend growers = more money and less stress. Investing in Canadian dividend growers should lead to recurrent investment income and help you achieve your retirement goals.

Can you invest in any Canadian Dividend Aristocrat and make money?

NO. This guide to Canadian Dividend Aristocrats provides you with a list of stocks and a methodology to select the right companies for your portfolio. We also share our favorite Canadian aristocrats.

Canadian Aristocrats and U.S. Aristocrats

The Canadian Dividend Aristocrats list is the little brother of a much more extensive and world-known dividend growers list. The popular U.S. Dividend Aristocrats List includes companies with over 25 consecutive years of dividend increases. What about Canadians? Do we have companies showing 25+ years of consecutive dividend increases?

While Canada has a few companies that achieved that feat, the Canadian Dividend Aristocrats list would be too short if we included them using the US requirement. Canadian aristocrats are companies that increased their dividends for at least five consecutive years.

While many investors might think 5 years is insufficient to give such an elite title to a company, I disagree. I love picking stocks that have just started increasing their dividends on their way to a great future. It’s a unique opportunity to select high-quality companies and enjoy stock price appreciation. We all wish we had bought shares of Coca-Cola (KO) 50 years ago when it was a young dividend grower. You have a similar opportunity with the Canadian dividend aristocrats.

Skip to the Good Stuff: Canadian Rock Stars List

Don’t get me wrong, I like the Canadian Aristocrats and will share more about them below. However, I believe there’s a better way to select dividend growers that will thrive for decades.

I have created a list showing about 300 companies with growing revenue, earnings per share (EPS), and dividend growth trends. Focusing on trends rather than numbers gives you a better perspective on past, present, and future growth.

The Dividend Rock Stars List is the best place to start your stock research. Get it for free by entering your name and email below.

What it Takes to Become a Canadian Dividend Aristocrat?

Canadian companies don’t have to show 25 years of consecutive dividend increases, unlike U.S. aristocrats. Even the 5-year minimum requirement isn’t as strict as you might think. The requirements Canadian companies must meet to earn the title are:

The company’s common stock is listed on the Toronto Stock Exchange (TSX) and is a constituent of the S&P BMI Canada. Stocks listed on the TSX Venture aren’t eligible.
The company’s market capitalization (Float-adjusted) is at least $300M. We want companies of a minimal size. Yet $300M is relatively permissive.
The company increased its regular cash dividends for five consecutive years, but companies can pause their dividend growth policy for a maximum of 2 years within said 5-year. In other words, if the company intends to share the wealth, it has a good chance of being included among the elite dividend growers.

Needless to say, it’s easier to become a Canadian aristocrat than a U.S. aristocrat! To do that, U.S. companies must:

Be a member of the S&P 500.
Show 25+ consecutive years of dividend increases.
Meet specific minimum size & liquidity requirements.

It would be foolish to think that any aristocrat out of the list makes a good investment. We regularly see companies added or withdrawn from the list on both sides of the border. The list you see in 2025 shows only those who survived the test of time.

Canadian Dividend Aristocrats for 2025

There are 92 Canadian dividend aristocrats in 2025. You’ll find very few Technology companies as that sector is not known for steady cash payments to shareholders. However, you’ll see many Financial Services and Industrials companies. Those two sectors have been and continue to be well-established dividend payers in Canada.

As shown below, half the Canadian dividend aristocrats are in the Financials, Industrials, and Real Estate sectors and about 22% are in the Communication Services and Utilities sectors. Industrials, Consumer Staples, Consumer Discretionary, and Materials each represent 4% to 9% of aristocrats. There are none in healthcare.

CDN Aristocrats Sector Allocation. Source: BlackRock

Here are the Canadian dividend aristocrats as of 2025, grouped by sector.

Core Sectors

Financials

Bank of Montreal (BMO.TO)	Intact Financial (IFC.TO)
Brookfield Asset Management (BAM.TO)	Manulife (MFC.TO)
Brookfield Corp (BN.TO)	National Bank (NA.TO)
CIBC (CM.TO)	Power Corporation (POW.TO)
Equitable Group (EQB.TO)	Royal Bank (RY.TO)
Fiera Capital Corp (FSZ.TO)	ScotiaBank (BNS.TO)
First National Financial (FN.TO)	Sun Life Financial (SLF.TO)
Great West Life (GWO.TO)	TD Bank (TD.TO)
Industrial Alliance (IAG.TO)	TMX Group (X.TO)

Consumer Staples

Alimentation Couche-Tard (ATD.TO)	Maple Leaf Foods (MFI.TO)
Empire Co (EMP.A.TO)	Metro (MRU.TO)
George Weston (WN.TO)	Premium Brands (PBH.TO)
Jamieson Wellness (JWEL.TO)	Saputo (SAP.TO)
Loblaw (L.TO)	The North West Company (NWC.TO)

Information Technology

Enghouse Systems (ENGH.TO)

Open Text Corporation (OTEX.TO)

Growth Sectors

Industrials

ADENTRA (ADEN.TO)	Hammond Power Solutions (HPS.A.TO)
Aecon Group (ARE.TO)	Savaria Corporation (SIS.TO)
Badger Daylighting (BDGI.TO)	Stantec (STN.TO)
Boyd Group Services (BYD.TO)	TFI International (TFII.TO)
Canadian National Railway (CNR.TO)	Thompson Reuters (TRI.TO)
Cargojet (CJT.TO)	Toromont Industries (TIH.TO)
Exchange Income Fund (EIF.TO)	Waste Connections (WCN.TO)
Finning Intl (FTT.TO)

Consumer Discretionary

Canadian Tire Corporation (CTC.A.TO)	Magna International (MG.TO)
Dollarama Inc (DOL.TO)	Restaurant Brands International (QSR.TO)

Income sectors

Real Estate

Allied Properties REIT (AP.UN.TO)	InterRent REIT (IIP.UN.TO)
Canadian Apartment Properties REIT (CAR.UN.TO)	Killam Apartment REIT (KMP.UN.TO)
CT REIT (CRT.UN.TO)	Minto Apartment REIT (MI.UN.TO)
FirstService Corp (FSV.TO)	Storagevault Canada (SVI.TO)
Granite REIT (GRT.UN.TO)

Utilities

AltaGas (ALA.TO)	Fortis (FTS.TO)
Atco (ACO.X.TO)	Hydro One (H.TO)
Canadian Utilities (CU.TO)	TransAlta Corp (TA.TO)
Emera (EMA.TO)

Communication Services

BCE (BCE.TO)	Quebecor (QBR.B.TO)
Cogeco (CGO.TO)	Telus (T.TO)
Cogeco Cable (CCA.TO)

Volatile Sectors

Materials

Altius Minerals (ALS.TO)	Stella-Jones (SJ.TO)
CCL Industries (CCL.B.TO)	West Fraser Timber (WFG.TO)
Franco-Nevada Corp (FNV.TO)	Wheaton Precious Metals Corp (WPM.TO)
Nutrien (NTR.TO)

Energy

Canadian Natural Resources (CNQ.TO)	Parkland Corporation (PKI.TO)
Enbridge (ENB.TO)	Pembina Pipeline (PPL.TO)
Gibson Energy (GEI.TO)	South Bow (SOBO.TO)
Imperial Oil (IMO.TO)	TC Energy (TRP.TO)
North American Construction (NOA.TO)	Tourmaline Oil (TOU.TO)

Even Better than an Aristocrat?

At Dividend Stocks Rock (DSR), we go further with our Canadian Rock Stars list, which we update and publish monthly. That list is even stronger than the Canadian Dividend Aristocraft list because we look beyond dividend growth. It is based on a combination of three metrics that I call the Dividend Triangle.

To be on the Rock Stars list, companies must show dividend, revenue, and EPS growth over 5 years. Growing revenue and profits fuel future dividend increases and make them more secure.

This simple focus on three metrics reduces your research time and helps you find companies with robust financials. Many aristocrats are on the Rock Star list, but not all. Also, the list includes many additional metrics and filters to help you narrow your search.

Download the Canadian Rock Stars list. We update it monthly!

Top 3 Canadian Dividend Aristocrats 2025

Using the methodology above, I’ve selected my favorite Canadian Aristocrats, who are also DSR Canadian Rock Stars.

Alimentation Couche-Tard (ATD.TO)

Investment Thesis: Big Dividends and Bigger Acquisitions

In the long term, dividend payouts should grow in the double digits, and investors should see strong stock price growth. ATD’s potential is directly linked to its capacity to acquire and integrate additional convenience stores. Management has proven its ability to pay the right price and generate synergies for each acquisition. ATD exhibits a solid combination of the dividend triangle: revenue, EPS, and strong dividend growth. The company counts on multiple organic growth vectors such as Fresh Food Fast, pricing & promotion, assortment, cost optimization, and network development. ATD has a growth plan (10 for the win) to generate over $10B in EBTIDTA in 2028. This includes a mix of organic growth and acquisitions.

In 2023, ATD confirmed the acquisition of 2,193 stores from TotalEnergies for €3.1B (100% of retail assets in Germany and the Netherlands and a 60% controlling interest in the Belgium and Luxembourg entities). This will significantly expand ATD’s exposure to the European market and increase its total number of stores to surpass 16,000 worldwide.

ATD Eyes 7-Eleven: A Game-Changer or a Waiting Game?

In mid-2024, the company announced its intention to acquire Seven & I (7Eleven), the world’s largest (by number) convenience store operator. We are still in the first innings of this soap opera, and nothing is telling us there will be an agreement. 7-Eleven is playing hard to get. You are better off waiting to see if an accepted deal is on the table before calculating the future debt ratio!

Potential Risks: Expansion Challenges

Growers by acquisition are all vulnerable to occasionally making a bad purchase. While ATD’s method of acquiring and integrating more convenience stores has proven successful, it is essential for them not to grow too fast or become too eager, leading to possibly overpaying in the name of growth. The company exhibited this when it tried to acquire the French grocery store Carrefour. Still, we don’t think the next acquisition should be a source of concern with the current management team. The company is back into another drama with its will to acquire 7-Eleven.

EV Disruption, Declining Tobacco Sales & Economic Uncertainty

Investors are also worried about the potential impact of electric vehicles on fuel sales, but we believe ATD will overcome this challenge by installing superchargers. Another secular trend is the decline in cigarette sales. ATD sells a lot of tobacco and alcohol products. It must shift its product offering toward food and fresh produce (that’s already the plan).

Finally, the economy impacts ATD’s revenue and earnings. In 2024, we saw a weakening dividend triangle, which has started to raise concerns from the most pessimistic investors.

Fortis (FTS.TO)

Investment Thesis: A Powerhouse in Growth & Dividends

Fortis invested aggressively over the past few years, resulting in solid growth from its core business. An investor can expect FTS’ revenues to grow as it expands. Bolstered by its Canadian-based businesses, the company has generated sustainable cash flows leading to four decades of dividend payments. The company has a five-year capital investment plan of approximately $25 billion between 2024 and 2028. This plan is $2.7 billion higher than the previous five-year plan. The increase is driven by organic growth, reflecting regional transmission projects for several business segments. Only 33% of its CAPEX plan will be financed through debt, while 61% will come from cash from operations. Chances are that most of its acquisitions will happen in the U.S. We also like the company’s goal of increasing its exposure to renewable energy from 2% of its assets in 2019 to 7% in 2035. FTS reported Capital expenditures of $2.3 billion in the first half of 2024, keeping its $4.8 billion annual capital plan on track.

Investing Big in U.S. Transmission & Renewables

Fortis is advancing its strategic initiatives by focusing on regulated growth and sustainability. The company is progressing with key transmission investments, including the MISO Long-Range Transmission Plan, where ITC expects at least $3 billion in capital investment for projects in Michigan and Minnesota. Fortis is also exploring opportunities to expand and extend growth beyond the current capital plan, with potential investments in renewable gases and transmission projects supporting the delivery of offshore wind.

Potential Risks: Interest Rates, Regulations & Currency Risks

Fortis remains a utility company; in other words, don’t expect astronomical growth. However, Fortis’ current investment plan is enough to make investors smile. Fortis made two acquisitions in the U.S. to perpetuate its growth by opening the door to a growing market. However, it may be difficult for the company to grow to a level where economies of scale would be comparable to that of other U.S. utilities. The risk of high prices for other U.S. utilities is also present. Fortis runs capital-intensive operations, making its business model sensitive to interest rates. Finally, as most of its assets are regulated, each increase is subject to regulatory approval. While FTS has a long history of negotiating with regulators, demand for rate increases may be revised. Please also note that Fortis’ revenue is subject to currency fluctuations between the CAD and USD currencies.

National Bank (NA.TO)

Investment Thesis: Winning Formula – Diversification, Acquisitions & Strong Dividends

NA has targeted capital markets and wealth management to support its growth. Private Banking 1859 has become a serious player in that arena. The bank opened private banking branches in Western Canada to capture additional growth. The bank now shows great diversification across its various business segments (with 50% of its revenue outside of classic savings & loans activities). Since NA is heavily concentrated in Quebec, it concluded deals to provide credit to investment and insurance firms under the Power Corp. (POW). In 2024, National Bank announced the acquisition of Canadian Western Bank (CWB.TO) for $5B. The deal is not closed yet (it is expected to close only at the end of 2025). If it happens, it will boost NA’s presence in Western Canada and open the door to more cross-selling opportunities amongst this new book of clients, as CWB doesn’t currently offer a service such as Private Banking 1859.

From Quebec to Cambodia

The stock has outperformed the Big 5 for the past decade as it has shown strong results. National Bank has been more flexible and proactive in many growth areas, such as capital markets and wealth management. Currently, NA is seeking additional growth vectors by investing in emerging markets such as Cambodia (ABA bank) and the U.S. through Credigy. We wonder if it can achieve more success than BNS on international grounds. This is one of the rare Canadian stocks having a near-perfect dividend triangle.

Potential Risks: Market Volatility & Economic Shifts

National Bank is still highly dependent on Quebec’s economy, as about half of its revenue comes from this province. As a hyper-regional bank, NA is more vulnerable to local economic events. This has not affected the bank significantly, but we advise keeping track of its credit loss provisions. Recessions and rising interest rates could also affect the bank’s debt portfolio. Financial markets’ revenues are also highly volatile. We often mention that financial markets could save or wreck the day–NA may experience a bad quarter if the stock market becomes bearish.

Overall, the bank has performed very well, but it usually takes more risk to identify growth vectors (such as the ABA bank investment and capital markets). So far, it has paid off, but it does not mean it will always be this way. Remember that investments in emerging markets are unpredictable and could shift very quickly.

Get More Stock Ideas: The Canadian Rock Stars List

Are you curious about the other Rock Stars on the list? Access to about 300 companies showing a positive dividend triangle (5-year revenue, earnings per share (EPS), and dividend growth trends) with filters.

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Best Canadian Stocks to Buy in 2025

Most of the best Canadian stocks pay a dividend. Known for their stability when markets are rough, they also provide income to investors quarterly. Companies in sectors such as utilities, REITs, and banks can protect you against market fluctuations and severe losses.

Yet, not all dividend-paying companies are good investments. Investing in dividend stocks can lead to painful losses and income cuts. The risk of falling for dividend traps or seeing your retirement income plummet due to the wrong stock selection is too frequent.

The market creates bubbles and hurts your portfolio. You worked hard to invest money, and you shouldn’t lose it to the wolves of Bay Street. There is a way you can invest safely in Canadian dividend stocks. We have selected some high-quality stocks to make your life easier.

Best Canadian Dividend Stocks for 2025

When I built my retirement portfolio, I focused on companies showing a combination of safe income and steady growth. My choices include Canadian Dividend Aristocrats (companies showing several years of consecutive dividend increases). I added a few more metrics and used the DSR stock screener to refine my research.

Here are some of the best Canadian Dividend Stocks for 2025:

#10 Telus (T.TO)

#9 Granite REIT (GRT.UN.TO)

#8 Hydro One (H.TO)

#7 Dollarama (DOL.TO)

#6 Canadian Natural Resources (CNQ.TO)

#5 CCL Industries (CCL.B.TO)

#4 Brookfield Corp (BN.TO)

#3 Brookfield Renewables (BEPC.TO)

#2 National Bank (NA.TO)

#1 Alimentation Couche-Tard (ATD.TO)

More Stock Ideas and Sectors’ Insights

Get the Best from the Markets

It is possible to build a portfolio from Canadian dividend stocks only. However, the S&P 500 has outperformed the Canadian market for decades. You might consider adding a few US companies to take advantage of these outstanding returns. I have created a top stocks booklet to help you out.

Each year, I compile a list of stocks expected to do better than the market for Dividend Stocks Rock members. I review the 11 sectors for them and include top picks for each. I’ve decided to share three with you: Communication Services, Consumer Staples, and Industrials. The booklet is a great place to find dividend growth stocks that offer Canadian and US diversification.

Download 6 of my top 27 for 2025 right here:

#10 Telus (T.TO)

About a year ago, Telus was upgraded to a PRO rating of 5. I thought the company would bounce back faster, but it wasn’t the case. My long-term view of Telus hasn’t changed, though.

While the company reported modest revenue growth throughout the year, its cash flow metrics (cash flow from operations, free cash flow and capital expenditure) have improved significantly. The company is covering their dividend from free cash flow and interest charges are under control.

It took longer than expected, but I believe Telus will get out of this rut and make investors happy. It’s only a matter of time.

#9 Granite REIT (GRT.UN.TO)

Granite is a very frustrating REIT to hold. I love the investment thesis which includes the strong need for industrial properties, GRT’s ability to grow its business while growing FFO per unit and distribution increases intact and the high occupancy rate. The financial metrics back this investment thesis as revenue, Funds from operations, FFO per units, payout ratio and occupancy rate are all looking good. Why is GRT frustrating to hold? Because it simply doesn’t get any love from the market. Despite its good numbers, GRT lags the market and fails to generate positive returns.

With a low FFO payout ratio (68% for the first 9 months of 2024), shareholders can enjoy a 4.5% yield that should grow and match (or beat) the inflation rate. This is among the rare REITs exhibiting AFFO per unit growth while issuing more units to finance growth.

#8 Hydro One (H.TO)

From time to time, I hear that Hydro-Quebec should go public and unlock tons of value. However, I understand the government’s provincial point of view of keeping this amazing asset for themselves. Do you know why? Because Hydro-Quebec pays a generous dividend to the government each year!

Well, Hydro One is in a similar situation but you have the possibility of getting a piece of the cake as the Ontario Government decided to sell a part of its stake in this beauty. With 99% of its operations being regulated and 98% of its electric lines being in Ontario, an investment in Hydro One is a pure play on Ontario’s power development. This is the pure definition of a sleep-well-at-night investment. The company expects to invest $1.3B to $1.6B in CAPEX yearly until 2027 which will support their EPS growth guidance of 4-7% and dividend growth of about 5%. The province enjoys a strong and diversified economy and Hydro One will continue to grow by walking in the province’s path.

#7 Dollarama (DOL.TO)

I’m kicking myself for not having Dollarama in my portfolio. Maybe in another life!

DOL has built a strong brand, and its business model (aimed at low-value items) is an excellent defensive play against the e-commerce threat over the retail business. As consumers’ budgets are tight, DOL appears to be an amazing alternative for many goods. Dollarama has been able to increase same store sales along with opening new stores consistently. The introduction of many products under its “home brand” increases the company’s margin. DOL introduced a new price point of $5 for many items, which lends additional flexibility and pricing power.

#6 Canadian Natural Resources (CNQ.TO)

CNQ is a rare beast in its environment that has increased dividends for 25 consecutive years. Yes, it even increased its payouts while everybody was on hold or cutting distributions in 2020. It brings the question: why is CNQ “oil price resistant”?

The company is sitting on a large reserve of cheap oil. According to management, CNQ is profitable with an oil price per barrel of around $35-$40. This enables the company to manage production and capex with greater flexibility. They can then slowdown CAPEX when the oil price is low and produce less. When we are in “full oil bull mode”, CNQ bolsters CAPEX and boosts production generating maximum cash flow. This is exactly what just happened where CNQ dropped its debt and now focuses on rewarding shareholders with share buybacks and dividend increases.

To be clear, I don’t see CNQ as a super powered growth stock for the future. However, with a yield above 4% and a resilient business model, that’s the type of business that will either be very good in your portfolio, or it will go back into hibernation mode paying a secure dividend. In both scenarios, you can be a winner over the long run.

#5 CCL Industries (CCL.B.TO)

Finding an international leader with a well-diversified business based in Canada is rare. Through the major acquisition of business units from Avery (world’s largest supplier of labels) in 2013, the company has set the tone for several years of growth. Bolstered by its previous successes, CCL also bought Checkpoint, a leading developer of RF and RFID, and Innovia in the past few years and announced more acquisitions in 2021. The company is still able to generate organic growth (roughly 4-5%) on top of its growth through acquisitions.

#4 Brookfield Corporation (BN.TO)

I’m keeping BN among my top picks for a third year in a row. The 2024 selection paid off as Brookfield skyrocketed with more than 50% return. I think there is much more to come! Brookfield is amongst the largest players in alternative asset management. As the stock market looks overvalued, many investors will turn toward alternative assets as a way to generate profits and hedge their bets. Those long-term assets require patient capital and a high level of expertise. Brookfield is in a perfect position to provide this service to investors. Even better, BN invests its own capital in many projects. Therefore, it can double-dip by charging a fee on managed capital and making capital gains when selling assets.

#3 Brookfield Renewables (BEPC.TO)

BEP enjoys large-scale capital resources and has the expertise to manage its projects across the world. Management aims for a 5-9% annual distribution increase, backed by double-digit guidance that includes a mix of organic and M&A growth. Investors gravitate toward clean energy, and BEP is well-positioned to attract them.

Following an impressive stock price surge through 2020, the stock has been trending down for the past two years, although there is nothing to worry about. The rise of interest rates on bonds combined with the incredible ride BEP has had is responsible for this correction. In late 2023, management reaffirmed its strong position and ability to generate strong returns over the long haul. The latest results in early 2024 confirmed that BEP is still focused on growth opportunities. In Q2 of 2024, management highlighted the important contract signed with Microsoft to supply 10.5GW to support MSFT’s AI and cloud business energy needs. This could open the doors to more deals with corporations in the future.

#2 National Bank (NA.TO)

There is no secret here as I’m a National Bank fan. It seems that the bank has done everything right over the past 15 years. This big transformation converted a small provincial bank into a serious player in capital markets and the private wealth industries. The Bank is expected to complete a key acquisition of Canadian Western Bank in 2025 which will bring more capital onto its balance sheet (supporting capital market lucrative operations), more synergies (high cross-selling opportunities between CWB’s commercial clients and private wealth management) and a good presence in Western Canada. NA is also doing very well in Cambodia (Aba Bank) and through its door into the U.S. (Credigy).

#1 Alimentation Couche-Tard (ATD.TO)

I might never have another choice for Canadian than Couche-Tard. I’ve looked at grocery stores, but Metro (MRU.TO) and Loblaws (L.TO) don’t offer many growth opportunities. Don’t get me wrong, they are great companies, but I think ATD will do better.

Things are changing quickly around the 7-Eleven deal. ATD has tried to get to the negotiation table to acquire 7-Eleven for a few months now. The Japanese company is trying all means to stay Japanese. The latest chatter was that the son’s founder would buy it back and make it private. The market liked the idea, and the ATD share price rose again. This story isn’t over yet one way or another.

For 2025, I see ATD striking another acquisition. After all, it’s in its DNA. If it’s not 7-Eleven, it will be another chain (maybe Casey’s?… it tried to acquire CASY in 2010). ATD must gain more expertise in growing organically through the sale of read-to-eat and fresh produce. This is how they can mitigate the impact of slowing fuel and tobacco sales over the next 10-20 years.

More Stock Ideas and 3 Sectors’ Insights

In the Top Dividend Stocks for 2025 booklet, you get six dividend stock ideas and learn about their sectors. Get a clear vision for the Communication Services, Consumer Staples, and Industrials so that you do not hesitate when looking at your portfolio.

Download our booklet now!