The ongoing drawdown in the equity markets allows you to purchase quality dividend stocks at a discount and benefit from an attractive yield. In addition to a steady stream of passive income, Canadian investors are poised to profit from long-term capital gains, too, by holding fundamentally strong TSX stocks in April 2025.
In this article, I have identified two magnificent TSX dividend stocks you can buy with $25,000 right now.
Is this TSX dividend stock a good buy right now?
Great-West Lifeco (TSX:GWO) unveiled medium-term financial objectives at its investor day, raising its base RoE (return on equity) target to 19% or higher and introducing a new capital generation goal exceeding 80% of base earnings.
The financial services company, which manages over $3 trillion in assets under administration, outlined how its four business segments are positioned to deliver consistent growth. Moreover, Chief Executive Officer (CEO) Paul Mahon emphasized that Great-West’s shift to capital-efficient businesses over the past five years has strengthened its financial performance.
Empower, its U.S. retirement business aims to deliver double-digit earnings growth by expanding wealth management operations. The segment has identified $1 trillion in potential rollovers from retirement plans over the next five years, offering a growth opportunity in the mass affluent market segment.
In Canada, Great-West highlighted its leadership positions in group benefits and wealth management, targeting mid-single-digit earnings growth through operational efficiency and deeper client relationships. The segment consistently generates 80-90% of its earnings as remittable capital.
The European division expects mid-single-digit earnings growth driven by Ireland’s growing wealth market and expansion in the U.K. bulk annuity sector, where it aims to increase market share from 3% to 6%.
Capital and Risk Solutions, the company’s reinsurance arm, highlighted its disciplined approach and ability to deliver consistent earnings despite industry volatility. The segment provides significant diversification benefits to the overall portfolio.
Chief Financial Officer Jon Nielsen noted the company plans to invest at least $250 million in transformation charges over the next 36 months to drive efficiency gains across its operations, supporting its enhanced financial objectives.
Is CPKC stock a good buy right now?
Canadian Pacific Kansas City (TSX:CP) CEO Keith Creel remains optimistic about the company’s growth trajectory despite trade tensions and the tariff war. CPKC also highlighted how the railroad’s unique tri-country network positions it to benefit from shifts in the supply chain.
Speaking at JPMorgan’s industrials conference, Creel emphasized that CPKC is approaching its second anniversary as the only railroad connecting Canada, the U.S., and Mexico. Despite weather challenges in Canada, the company expects to close out a strong first quarter, maintaining confidence in its 12-18% earnings growth guidance for the year.
While acknowledging tariff concerns, Creel outlined how CPKC’s network enables it to serve as a “market maker” during trade disruptions. The railroad has already begun facilitating new cross-border shipments, including Canadian food products to Mexico and Canadian aluminum to Mexican manufacturers, effectively creating a land bridge between Canada and Mexico that bypasses U.S. markets when necessary.
CPKC continues to advance growth initiatives, such as its partnership with Americold, to create temperature-controlled shipping corridors for agricultural products. The cold storage facility in Kansas City, opening this summer, will include Mexican customs inspectors, simplifying border procedures for perishable goods.
CPKC’s cross-border intermodal service between the U.S. and Mexico has seen a 43% growth compared to last year, taking market share from trucking by offering faster transit times than its competitors. The recently completed second international bridge at Laredo enhances capacity and fluidity at this critical border crossing point.
CPKC offers shareholders a forward yield of just 0.7%. However, the top TSX stock has returned more than 1,400% to shareholders in the past two decades.
