In this article, we will take a look at the 10 Best Canadian Dividend Stocks to Buy for the Next 5 Years.
On June 25, Canada’s main stock index held on to its early gains as strength in the metals, mining, and industrial sectors lifted the market. The S&P/TSX Composite Index closed up 0.33% at 34,850.21 after giving back some of its earlier gains during the trading session. Corbin Footitt, a portfolio manager at Verecan Capital Management, made the following comment:
“There is potential for Canada to sustain its outperformance, though a rebound in AI-driven stocks could see U.S. equities regain the lead.”
He added that the TSX’s recent strength has been largely driven by gold and a handful of technology stocks. “If either weakens, the market lacks broader depth,” he added.
Dividend-paying companies make up a significant share of the Canadian equity market. These businesses are typically well-established, financially sound, and operate stable businesses. Dividends also play an important role in long-term investment returns. They can help offset losses during market downturns while adding to total portfolio returns when markets are rising.
According to RBC Global Asset Management, dividends contributed an average of 3.2% annually to the S&P/TSX Composite Total Return Index over the 44 years through 2020. That accounted for about one-third of the index’s average annual total return.
The report also found that companies paying dividends have historically outperformed the broader index. In addition, dividend-paying stocks have generally experienced lower volatility than companies that do not pay dividends during the same period.
Given this, we will take a look at some of the best dividend Canadian stocks to invest in.
Photo by Karolina Grabowska: https://www.pexels.com/photo/hands-holding-us-dollar-bills-4968630/
Our Methodology:
For this article, we screened for dividend companies that trade on US exchanges. From that group, we focused on dividend stocks with consistent policies, sound balance sheets, and strong financials. Next, we identified stocks that are expected to grow their earnings by at least 10% over the next 5 years, and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10. Silvercorp Metals Inc. (NYSEAMERICAN:SVM)
Number of Hedge Fund Holders: 19
On June 25, Roth Capital raised its price recommendation on Silvercorp Metals Inc. (NYSEAMERICAN:SVM) to $14 from $13.75. It reiterated a Buy rating on the stock. The analyst said the move came after the company unveiled a development plan for the Chaarat ZAAV project in Kyrgyzstan. According to Roth, Silvercorp is making a meaningful financial commitment to the project, a step the firm views favorably because of its long-term potential.
Silvercorp also delivered a strong finish to fiscal Q4 2026. The company kept production running through the Chinese New Year. It produced about 1.5 million ounces of silver and 2,492 ounces of gold, equal to roughly 1.6 million silver-equivalent ounces. The quarter also marked a record for revenue. Silvercorp generated $147.4 million after selling around 1.5 million ounces of silver, 2,623 ounces of gold, 13.6 million pounds of lead, and 3.9 million pounds of zinc. Revenue nearly doubled from the same quarter a year ago, largely because the average realized silver price climbed 183% to $78.6 per ounce. Silver made up 78% of the company’s total quarterly revenue.
The company’s cash cost per ounce of silver, net of by-product credits, improved to negative $1.92 from $2.49 a year earlier. This improvement was mainly driven by the adoption of a more mechanized and lower-cost shrinkage mining method.
Silvercorp Metals Inc. (NYSEAMERICAN:SVM) is a Canadian mining company that produces silver, gold, lead, and zinc. The company focuses on acquiring, exploring, developing, and mining mineral properties.
9. Magna International Inc. (NYSE:MGA)
Number of Hedge Fund Holders: 25
On June 4, Citi raised its price recommendation on Magna International Inc. (NYSE:MGA) to $75 from $58. It reiterated a Neutral rating on the stock. The firm believes Magna stands to benefit from improving demand trends in North America and recent business wins. Even so, Citi sees the shares as fairly valued at current levels.
Earlier in May, TD Securities also increased its price objective on Magna to $76 from $75. It kept a Buy rating on the shares. The firm described the company’s first-quarter results as solid. Analyst Brian Morrison said in a research note that Magna is well-positioned to deliver results at the mid-to-high end of its guidance. TD also views the post-earnings pullback in the stock as a buying opportunity.
Magna International Inc. (NYSE:MGA) is a Canada-based mobility technology company. It supplies automotive components and systems, with expertise in body and chassis products, all-wheel-drive and front-wheel-drive systems, transmissions, latches, mirrors, and contract vehicle assembly.
8. Triple Flag Precious Metals Corp. (NYSE:TFPM)
Number of Hedge Fund Holders: 26
On June 15, BofA lowered its price recommendation on Triple Flag Precious Metals Corp. (NYSE:TFPM) to $39 from $40. It reiterated a Buy rating on the stock. The analyst said the company’s newly announced gold stream on the long-life Ravenswood mine is expected to add about 11,000 ounces of annual gold production.
On June 12, Triple Flag announced that its wholly owned subsidiary, Triple Flag International Ltd., had agreed to acquire a gold stream on the producing Ravenswood Gold Mine in Queensland, Australia. The deal includes an upfront cash payment of $440 million. Unless otherwise indicated, all amounts are expressed in US dollars.
The company said the transaction is expected to provide immediate cash flow and increase its exposure to gold production from Queensland’s largest gold mine. It is supported by target gold deliveries over the next two years. Following the completion of a recent A$830 million investment, the Ravenswood Mine has been capitalized to continue its ramp-up. Annual gold production is expected to exceed 200,000 ounces by 2028. The mine produced 134,000 ounces of gold in 2025.
According to the Wood Mackenzie total cash and sustaining capital gold cost curve estimate for 2026, the Ravenswood Mine’s life-of-mine average cost ranks in the first half of the industry cost curve.
Triple Flag Precious Metals Corp. (NYSE:TFPM) is a precious metals streaming and royalty company. It provides investors with exposure to gold and silver through a portfolio of 237 assets, including 17 streams and 220 royalties, primarily located in the Americas and Australia.
7. TFI International Inc. (NYSE:TFII)
Number of Hedge Fund Holders: 29
On June 23, Goldman Sachs raised its price recommendation on TFI International Inc. (NYSE:TFII) to $168 from $145. It reiterated a Buy rating on the stock. The analyst said the firm’s outlook for less-than-truckload (LTL) and truckload stocks has improved through 2028. Higher upside scenarios reflect the possibility of a stronger freight recovery cycle. The analyst added that despite the sector’s sharp recent share gains, continued early-cycle momentum and the beginning of earnings upgrades support a constructive view if demand rebounds faster than expected.
On June 15, Citi also raised its price goal on TFII to $188 from $163. It maintained a Buy rating on the shares. The analyst noted that many trucking stocks are trading near all-time highs, reflecting “elevated optimism,” according to a research note. At the same time, Citi has become more cautious on the trucking sector and downgraded four companies in the group.
TFI International Inc. (NYSE:TFII) is a transportation and logistics company that operates across the United States, Canada, and Mexico through its subsidiaries. The company operates through three business segments: Less-Than-Truckload (LTL), Truckload (TL), and Logistics.
6. TransAlta Corporation (NYSE:TAC)
Number of Hedge Fund Holders: 36
On June 10, TD Securities resumed coverage of TransAlta Corporation (NYSE:TAC) with a Buy rating. It also set a C$26 price target on the stock. The update came following the completion of the company’s bought deal equity offering. The firm said the stock’s 13% pullback since the announcement of TransAlta’s acquisition of Colorado gas-fired peaking assets reflects concerns about the assets’ characteristics and the company’s valuation. Even so, TD Securities believes the acquisition aligns with TransAlta’s strategy to expand its presence in the Western US. The firm also expects near-term progress on the broader Alberta data center opportunity.
Earlier, on June 4, Reuters reported that TransAlta would acquire two natural gas-fired peaking facilities near Denver, Colorado, from Blackstone for about $1 billion. It would strengthen its position in the Western US power market. Power producers have been adding flexible gas-fired generation capacity to meet rising electricity demand as the industry prepares for rapid growth in consumption, driven in part by power-hungry data centers.
The two facilities, Mountain Peak Power and Canyon Peak Power, have a combined generation capacity of 318 megawatts. They are fully contracted under long-term tolling agreements with investment-grade customers for more than 25 years. The transaction includes assuming $750 million in project-level debt and raising about $250 million in equity through a C$350 million bought deal share offering.
The facilities are expected to generate about $80 million in annual adjusted core profit and approximately $33 million in free cash flow, with additional upside from performance incentives.
TransAlta Corporation (NYSE:TAC) owns, operates, and develops a diversified fleet of power generation assets across Canada, the United States, and Australia. The company supplies affordable, energy-efficient, and reliable electricity to municipalities, businesses, medium and large industrial customers, and utility providers.
While we acknowledge the potential of TAC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than TAC and that has 100x upside potential, check out our report about the cheapest AI stock.
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