Beat the TSX? It’s Easy With These Cash-Gushing Dividend Stocks

Not only do these stocks produce income through dividends, but also through growth over the years!

Amy Legate-Wolfe

Author Bio Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Her work can also be found at Canada's National Observer, where she writes on the business side of climate action. Before joining Motley Fool Canada, Amy wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Social Media Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published June 13, 2025 4:40 pm EDT

| More on: FCR.UNIGMSIA

With rising costs and market uncertainty, income-producing investments are more important than ever. Dividend stocks paying consistently and offer long-term potential can help investors weather economic storms. That’s where these stocks come in. They may not be flashy, but they gush cash, and that’s exactly what many Canadians need right now.

senior man smiles next to a light-filled window — Source: Getty Images

IGM

IGM Financial (TSX:IGM) is one of the largest asset managers in Canada. The financial services firm owns IG Wealth Management and Mackenzie Investments, among other businesses. It makes money from management fees tied to the assets it oversees. And right now, business is good.

In its most recent earnings report, IGM posted adjusted net earnings of $237.8 million, up 5.9% year over year. Assets under management and advisement reached a record $278.8 billion. That’s a big deal, especially during volatile markets.

The dividend stock offers a dividend yield of about 4.7%, which is supported by consistent earnings and strong profit margins. IGM isn’t a high-growth play, but it’s dependable. The dividend stock has increased its dividend over time and remains well capitalized. That makes it a steady choice for investors seeking income with a side of growth.

First Capital

Then there’s First Capital REIT (TSX:FCR.UN), which owns and operates open-air retail properties in urban neighbourhoods across Canada. Its tenants include grocery stores, banks, pharmacies, and other essential services. These kinds of businesses tend to be stable through economic cycles, which makes First Capital’s revenue stream more predictable.

As of its last update, the REIT owns over 22 million square feet of commercial space valued at nearly $10 billion. It pays out a monthly dividend, with an annualized yield around 5.4% at writing. That’s well above the TSX average.

In the past year, the dividend stock has returned over 25%, showing that investors are rewarding its performance and defensive nature. For those seeking income without sacrificing long-term reliability, First Capital is a strong pick.

Sienna Senior Living

Sienna Senior Living (TSX:SIA) offers something different. It owns and operates retirement residences and long-term care facilities, mostly in Ontario and British Columbia. With Canada’s population aging rapidly, demand for senior care continues to grow.

In the first quarter of 2025, Sienna reported revenue of $200.5 million, a 12.5% increase from last year. While net income dipped slightly to $0.18 per share, the dividend stock remains profitable. It recently acquired new properties in Alberta, further expanding its footprint.

Sienna offers a dividend yield of about 4.5% at writing, with monthly payments that have remained consistent. Even as labour and occupancy challenges impact the sector, Sienna continues to invest in its operations and future growth. It’s not the flashiest name on the market, but it’s a stable income stock with long-term demographic tailwinds.

Bottom line

All three stocks offer reliable dividends backed by real cash flow. Each come from different sectors, finance, real estate, and healthcare, but share a common trait: consistency. While tech and growth stocks might dominate headlines, dividend stocks quietly reward patient investors through thick and thin. These businesses don’t rely on market hype. They generate revenue, pay dividends, and reinvest in growth. And right now, a $7,000 investment equally spread could bring in $256.12 in annual dividend income!

COMPANY	RECENT PRICE	NUMBER OF SHARES	DIVIDEND	TOTAL PAYOUT	FREQUENCY	INVESTMENT TOTAL
IGM	$44.76	67	$0.5625	$37.69	Quarterly	$2,998.92
FCR.UN	$17.69	169	$0.89	$150.41	Monthly	$2,988.61
SIA	$13.75	218	$0.312	$68.02	Quarterl	$2,997.50

As Canadians shift their financial priorities, these types of dividend stocks can play an important role in a balanced portfolio. Many people are pulling back, adjusting spending, and seeking stability. Stocks like IGM Financial, First Capital REIT, and Sienna Senior Living offer exactly that. They provide income in good times and bad, giving investors peace of mind.