Investing in the equity markets is a proven strategy for deriving inflation-beating returns over time. However, it’s essential to buy quality stocks and hold them for at least a decade to benefit from the power of compounding and the underlying volatility surrounding this asset class.
Canadian investors should consider gaining exposure to dividend growth stocks to benefit from capital gains and a steady stream of passive income. In this article, I have identified three top Canadian dividend stocks you can buy right now for growth and income.
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Savaria stock
The first TSX stock on my list is Savaria (TSX:SIS), which delivered impressive results for fourth quarter (Q4) and full year 2024. It reported an adjusted EBITDA (earnings before interest, tax, depreciation, and amortization) margin of 19.2% in Q4 and 18.6% for the year, marking a 310 basis point improvement over 2023.
The accessibility and patient care equipment manufacturer demonstrated operational resilience by successfully implementing its “Savaria One” strategic initiative, which delivered over $30 million in EBITDA improvements.
Patient care posted its strongest quarter ever, with a 23.1% EBITDA margin and 20.6% organic growth. The North American accessibility segment maintained momentum throughout 2024, while European operations focused on margin improvement over volume, resulting in a 480 basis point margin increase.
While newly imposed tariffs on Canadian exports to the U.S. present near-term challenges, Chief Executive Officer (CEO) Sébastien Bourassa outlined a multi-faceted response strategy, including price adjustments, potential production shifts to existing U.S. facilities, and supply chain optimization. Savaria has 60,000 square feet of available capacity in its Greenville facility that could be utilized for final assembly.
Management revised 2025 guidance to $925 million in revenue with adjusted EBITDA margins between 17% and 20%. The TSX stock offers a dividend yield of 3.3% in April 2025. It also trades at a 50% discount to consensus price targets.
CNQ stock
Canadian Natural Resources (TSX:CNQ) is among the largest companies on the TSX. Earlier this year, the energy giant unveiled an ambitious 2025 budget targeting production growth while maintaining a disciplined approach to capital allocation. CNQ estimates production will grow by 12% year over year to 1.53 million barrels of oil equivalent per day (BoE/d) in 2025.
CNQ’s strategic advantage stems from its diverse asset portfolio, with over half of production coming from long-life, low-decline, or zero-decline assets. This results in a remarkably low corporate decline rate of 11%, requiring less maintenance capital and generating more predictable free cash flow.
CNQ’s 2025 capital budget of $6 billion is designed to deliver value growth across its conventional E&P (exploration and production) business and long-life thermal and oil sands assets. Management highlighted the balanced production mix targeted for 2025:
- 47% high-value synthetic crude oil, light crude, and NGLs (natural gas liquids)
- 26% heavy oil
- 27% natural gas
Canadian Natural Resources currently offers you a yield of 5.7% and trades at a 40% discount to consensus price targets.
Brookfield Asset Management stock
The final TSX dividend stock on the list is Brookfield Asset Management (TSX:BAM), which is among the largest alternative asset managers globally. In Q4 of 2024, Brookfield reported record fee-related earnings of US$677 million, up 17% year over year.
In 2024, the asset manager grew its fee-bearing capital by 18% to US$539 billion and announced a 15% dividend increase, reflecting management’s confidence in continued growth.
Brookfield’s strategic positioning appears exceptionally strong. CEO Bruce Flatt highlights three powerful secular tailwinds driving BAM’s business: the ongoing digitalization boom fueled by artificial intelliegence, the need to double global electricity generation in coming years, and the continued expansion of private credit markets.
BAM stock offers a tasty dividend yield of 3.2% and trades at a discount of 11% to consensus price targets.
