In this article, we will take a look at some of the best high growth Canadian dividend stocks.
A Reuters poll of economists expects the Bank of Canada to maintain its overnight interest rate at 2.75% on July 30 for the third consecutive meeting, citing recent upward pressure on inflation and a decline in unemployment. While the central bank has implemented a cumulative 225 basis points in rate cuts since June 2024, it has remained on pause since March as policymakers navigate ongoing uncertainty surrounding US tariff threats. Despite the current hold, a majority of analysts still forecast at least two additional rate cuts by the end of the year.
The direction of Canada’s economic outlook is heavily influenced by trade developments, particularly since over 80% of Canadian exports are routed to the United States. Higher American import tariffs on core goods, including steel, aluminum, and automobiles, have already contributed to a deterioration in business and consumer confidence within Canada. Further complicating the trade environment, a recent proposal by President Donald Trump to implement a blanket 35% tariff on goods not covered under the existing Canada-US-Mexico Agreement has added to the policy uncertainty.
Regarding Trump’s tariff threats, Matthew Holmes, the chief of public policy at the Canadian Chamber of Commerce, recently commented:
“It’s really kind of a decoupling moment that is scary to watch in the short term. In the medium to long term, I have to say, it’s an important wake-up call for Canada. If I look back on this in 20 years, I hope to be able to say that this woke Canada up to the need to be a little more strategic and have a little bit more of its own agency in the economy and in the kind of economy we want.”
But how exactly are these trade tensions rippling through the broader Canadian economy? Canada’s economy posted an unexpected growth of 2.2% in Q1 2025, largely attributed to anticipatory purchasing by American firms ahead of potential tariff increases. Nevertheless, the broader outlook remains clouded by considerable uncertainty surrounding the ongoing US trade negotiations. A new trade deal between Canada and the US is expected in the coming months and will play an important role in shaping the future economic outlook.
With that in mind, let’s take a look at the 10 high growth Canadian dividend stocks that are also on Wall Street’s radar.
Image by Steve Buissinne from Pixabay
Our Methodology
We used the Finviz stock screener to filter out Canadian stocks that pay dividends and have an average 5-year revenue growth of over 10%. The 10 chosen stocks were some of the top high-growth dividend stocks that also received coverage from Wall Street analysts and mainstream media outlets recently. These stocks were favored by top hedge funds in the first quarter of 2025, as per Insider Monkey’s Q1 2025 database. The following list is arranged in ascending order of the number of hedge fund holders.
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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10. Algonquin Power & Utilities Corp. (NYSE:AQN)
Average 5-Year Revenue Growth Rate: 11.77%
Dividend Yield as of July 25: 4.33%
Number of Hedge Fund Holders: 23
Algonquin Power & Utilities Corp. (NYSE:AQN) is one of the best high growth stocks. On June 4, RBC Capital lifted the target price to $6.50 from $6 and reiterated a Sector Perform rating on the stock. This adjustment aligns with the company’s newly introduced “Back to Basics” strategy, outlining EPS targets through 2027, along with a forecasted 8.5% ROE and nearly 5% CAGR in its rate base.
The strategic presentation delivered by Algonquin Power’s management exceeded investor expectations, particularly with respect to the company’s forward-looking guidance through 2027. The greater clarity and specificity provided during the presentation seem to have boosted investor confidence, contributing to a nearly 16% increase in the company’s share price. Moreover, Algonquin’s robust profile is supported by its 28-year history of uninterrupted dividend payouts.
Even though the strategy was well received, RBC Capital kept a Sector Perform rating on Algonquin. The firm explained that they are still concerned about how well the company can follow through on its plans. They also pointed out that the stock seems expensive right now, trading at 21 times and 17 times the expected earnings for 2026 and 2027, based on the company’s guidance, not including HLBV income.
Algonquin Power’s “Back to Basics” plan is a big move to help the company get on stronger financial ground and grow steadily in the next few years.
Algonquin Power & Utilities Corp. (NYSE:AQN), headquartered in Oakville, Canada, is a diversified utility company that specializes in regulated electric, water, wastewater, and natural gas systems.