When it comes to building a robust investment portfolio, Canadians often gravitate towards blue-chip dividend stocks. However, there’s a compelling case for considering mid-cap companies that offer both growth potential and reliable dividends. Let’s delve into three such TSX-listed stocks for investments that are worth your time and, of course, your money.
Capital Power
Capital Power (TSX:CPX) has been making waves in the energy sector. In its recent earnings report, the company announced a net income of $665 million for the fiscal year 2024, reflecting a slight decrease from the previous year. Despite this, Capital Power exceeded analysts’ expectations, showcasing its resilience in a challenging market.
The dividend stock achieved a significant milestone with the commercial operation of the Genesee Repowering project, positioning itself for growth in the U.S. market. With a history of dividend growth and guidance of 6% annual growth through 2025, Capital Power remains committed to enhancing shareholder value.
CIBC
Canadian Imperial Bank of Commerce (TSX:CM) recently reported a robust first quarter for 2025. The bank’s adjusted net income rose to $2.18 billion, up from $1.77 billion in the same period last year. This uptick was driven by the strength of its capital markets unit, which saw a net income of $619 million — a 19% increase year over year.
With a forward annual dividend yield of 4.43%, CIBC continues to be a reliable choice for dividend-seeking investors. The dividend stock’s strong performance amidst favourable economic conditions underscores its stability in the Canadian banking landscape.
goeasy
Finally, goeasy (TSX:GSY), a lesser-known gem, has been delivering impressive results. In the fourth quarter of 2024, the dividend stock reported a record adjusted diluted earnings per share of $4.45, marking an 11% increase from the previous year. Over the past five years, goeasy has achieved an average annual earnings growth rate of 31%, reflecting its strong operational performance.
The dividend stock also announced a dividend increase, demonstrating its commitment to returning value to shareholders. With a forward annual dividend yield of 3.59%, goeasy offers an attractive proposition for investors seeking growth and income.
Looking ahead
Over the past year, Capital Power’s stock has experienced a 33.09% increase, reflecting investor confidence in its strategic initiatives. CIBC’s stock has seen a 30.78% rise over the same period, bolstered by strong financial results. goeasy’s stock has been more volatile, with a 52-week range between $153.30 and $206.02. Yet its consistent earnings growth and dividend increases make it a noteworthy contender.
Looking ahead, these dividend stocks are well-positioned to navigate the evolving economic landscape. Capital Power’s focus on sustainable energy projects aligns with global trends towards cleaner energy sources. CIBC’s diversified revenue streams and strong capital markets performance provide a solid foundation for future growth. Plus, goeasy’s expansion in the alternative financial services sector offers significant growth potential, especially as it continues to innovate and meet the needs of underserved markets.
Bottom line
While traditional blue-chip dividend stocks have their merits, exploring mid-cap companies like Capital Power, CIBC, and goeasy can offer a balanced mix of stability, growth, and income. These dividend stocks demonstrated strong financial performance, a commitment to shareholder returns, and promising prospects, making them worthy considerations for every Canadian investor’s portfolio.
