Beat the TSX With These Cash-Gushing Dividend Stocks

Learn how recent macro events have affected stocks on the TSX, and find out which stocks are thriving despite challenges.

Puja Tayal

Author Bio

Puja Tayal grew up in a small-business family where dinner conversations often centred on working capital and savings. Her early experiences with investing, particularly during the 2008 financial crisis, shaped her approach to understanding markets and evaluating investment opportunities. She began her career at a mutual fund company before moving into investor education and financial writing for asset and wealth management firms. Before joining The Motley Fool, Puja wrote for Market Realist, where she extensively covered the semiconductor industry. Her published work has also appeared in The Indian Express. Puja believes every stock has a story that can help investors understand its potential returns. She combines business analysis with different investing approaches to help investors make informed decisions and align their portfolios with their long-term financial goals. Outside of finance, Puja enjoys long drives, catching up with friends, watching superhero and science-fiction movies, and managing her family portfolio. She also has a keen interest in artificial intelligence and its potential to reshape the world.

Education

Bachelor's degree in Accounting and Finance, University of Mumbai (2007)
CFA Level I

Areas of Expertise

Qualitative company analysis, management strategy, risk assessment, long-term investing, portfolio diversification and rebalancing, dividend reinvestment, cyclical growth opportunities, compounding strategies, growth stocks, and dividend stocks.

Social Media Profiles

Favorite Investment Quote

"Risk comes from not knowing what you're doing." — Warren Buffett

Published May 4, 2025 9:15 am EDT

The TSX has had a roller coaster ride since Donald Trump became the U.S. president. Canada has already been facing political uncertainty, which pushed the federal elections early to April 28, 2024. The stock market doesn’t like uncertainty, especially macro uncertainty. This is because government policies and macro events can alter the business environment. Companies have no control over them. All they can do is navigate the environment.

The recent business environment was not optimistic for oil, materials, and finance stocks. However, two stocks moved in the opposite direction and beat the TSX by a high margin.

Canadian dollars are printed — Source: Getty Images

Two stocks that beat the TSX in 2025

The TSX Composite Index fell 0.75% year to date, with a sharp 11% correction between April 2 and 8 when Trump announced retaliatory tariffs. The TSX fell because finance, materials, and energy stocks make up a significant portion of the market cap.

AltaGas stock

AltaGas (TSX: ALA) stock rallied 19.7% year to date, fell 8% during the retaliatory tariff announcement, and fully recovered when they were paused for 90 days. Behind the company’s contrarian move is its significant presence in the United States.

It earns 56% of its earnings before interest, taxes, depreciation, and amortization (EBITDA) from its U.S. gas utilities and 12% from natural gas exports to Asian markets. Although AltaGas is a Canadian energy and utility company, it is not affected by tariffs. Moreover, the company is looking to expand its U.S. operations by tapping top data centre locations.

The company has recently completed its restructuring, which has improved its cash from operations. It aims to maintain its dividend payout ratio at around 50-60% of normalized earnings per share (EPS) and grow dividends at an average annual rate of 5% till 2029.

If other stocks in your portfolio are hit by the tariffs, AltaGas can help you hedge against the tariff war and beat the TSX in 2025.

Power Corporation of Canada

Power Corporation of Canada (TSX: POW) stock surged 15% year to date, experienced an 8.7% dip during the reciprocal tariffs in early April, and then recovered. POW is a financial holding company with holdings in insurance, asset management, and alternative investment companies.

Behind the rally were strong earnings from its insurance arm, Great-West Life. Insurance companies tend to do well amid uncertainty as more people buy cover when they see a surge in risk.

POW has been restructuring its portfolio, which has helped it earn significant gains. The company also increased its quarterly dividend by 8.9%. It is a good stock to buy as it can hedge against economic uncertainty with the insurance arm and ride the recovery rally with IGM Financial.

Final thoughts

Both companies are seeing growth in their cash flows, and cash is the king in turbulent times. Their positive cash flow growth makes them a good hedge against tariffs and can preserve your portfolio’s overall value.