I’d Put $7,000 in This Canadian Dividend Knight Without Hesitation

Dependable, rewarding, and built for the long term — this top Canadian dividend stock is worth considering right now.

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If you’re not in the habit of investing regularly, then the times you do invest need to count. That’s why, if I had $7,000 ready to go, I wouldn’t overthink it. Instead, I’d put it straight into some of Canada’s most dependable dividend-paying stocks. While such stocks might not surge overnight, they keep growing steadily in the background and give me a sense of confidence through market ups and downs.

When you have a fundamentally strong business that’s raised dividends for years and stayed rock solid in tough times, you should hold on. Let me show you a top Canadian dividend stock I’d buy today with $7,000 and how it can strengthen your portfolio for years to come.

A top bank stock with consistent dividends

So, if I had to pick just one top Canadian dividend stock today, Bank of Nova Scotia (TSX:BNS), or Scotiabank, would be right at the top of my list. As one of Canada’s largest and most established financial institutions, it offers a full range of banking, investment, and wealth management services across several countries.

After a tough patch earlier this year, BNS stock has been steadily climbing. Over the last 30 days, it has jumped nearly 14% to currently trade at $72.91 per share with a market cap of $90.8 billion. The bank also rewards investors with attractive quarterly dividends with an annualized yield of just over 6%.

Signs of stability in the numbers

A key reason behind this rebound in BNS stock is the clarity and discipline the bank is showing, especially in an uncertain environment. Despite macroeconomic concerns and geopolitical noise, Scotiabank has continued focusing on building client relationships and streamlining its operations.

In its latest quarter ended April 2025, the bank reported adjusted earnings of $1.52 per share. Although that’s slightly down from last year due to higher provisions for credit losses, its overall financial growth trend remained stable. Scotiabank’s quarterly revenue rose 8.7% YoY (year over year) to $9.08 billion.

Another positive takeaway from its latest earnings was how well many of its segments performed. For example, the bank’s international banking saw a 7% YoY jump in adjusted earnings, and its global wealth management arm posted a strong 17% increase from a year ago.

Built for the long term

Notably, Scotiabank is investing smartly in areas that will help it grow for years to come. It’s deepening customer relationships, especially in advice-driven banking. At the same time, it’s cutting inefficiencies and improving productivity in its international operations. These moves are likely to help the bank grow more consistently while keeping risk in check.

Similarly, the bank’s sale of non-core assets like CrediScotia in Peru, along with strategic shifts in Colombia, Costa Rica, and Panama, demonstrates how it is streamlining its footprint. That will help it free up capital for stronger growth markets.

Considering these factors, if you’ve got $7,000 sitting idle and want to put it to work in a top Canadian dividend stock right now, Scotiabank makes a strong case for itself.

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Bank Of Nova Scotia. The Motley Fool has a disclosure policy.

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