With inflation cooling and the Bank of Canada holding rates steady, many investors are starting to wonder if interest rates have finally peaked. If so, this could mark a shift in market dynamics, especially for dividend stocks that were hit hard by rising borrowing costs. The good news is that some Canadian stocks stand to benefit if rates stay flat or begin to decline. If you’re building a portfolio for the next stage of the cycle, three names on the TSX stand out: goeasy (TSX:GSY), SmartCentres REIT (TSX:SRU.UN), and Brookfield Infrastructure Partners (TSX:BIP.UN).
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goeasy
Let’s start with goeasy. This alternative lender has been a growth story over the last decade, expanding its loan book while steadily increasing its dividend. In the most recent quarter, goeasy reported revenue of $392 million, up 9.9% from the same period last year. However, adjusted net income came in at $60 million, down about 9% year over year, with earnings per share (EPS) landing at $3.53. That missed analyst expectations but still reflects solid profitability. The dividend stock’s total loan portfolio grew to $4.8 billion, a 24% increase, even as higher rates weighed on consumer affordability.
If interest rates are indeed peaking, this could be a turning point for goeasy. Lower rates would mean lower borrowing costs, which could reduce credit stress on customers and improve loan performance. It would also help the dividend stock maintain or grow its margins. As of now, goeasy pays an annual dividend of $5.84 per share, for a yield around 3.5%. That payout has been growing steadily for years and with rate relief possibly ahead, the trend could continue. GSY is a dividend stock with both growth and income appeal.
SmartCentres
Now let’s look at SmartCentres REIT. This real estate investment trust (REIT) owns and manages a large portfolio of retail-focused properties across Canada, many of which are anchored by Walmart. In a world of e-commerce, SmartCentres has held up better than expected thanks to its focus on essential retail and stable tenants. In the first quarter of 2025, the dividend stock posted revenue of $234 million, up 7.8% year over year. It did report a net loss of $7.9 million, but this was mostly due to non-cash fair value adjustments rather than operational issues.
SmartCentres pays a distribution of about $1.85 annually. At a recent share price just above $25, that gives it a yield of roughly 7.3%. That kind of income is rare among large Canadian REITs, and it looks sustainable. If interest rates fall, the trust could refinance some of its debt at better terms, freeing up more cash flow for distributions or new development. That would be a welcome change after two years of navigating higher rates and inflation pressures.
BIP
Finally, there’s Brookfield Infrastructure Partners. This name gives investors access to a diversified global portfolio of critical infrastructure – think utilities, pipelines, rail, and telecom towers. It’s a long-term compounder with reliable cash flow and a generous distribution. In the first quarter of 2025, Brookfield reported strong financial results, with funds from operations well ahead of estimates and a quarterly distribution of US$0.43 per unit, up 6% from the prior year.
Brookfield’s assets tend to benefit when rates fall. Some of its debt is floating-rate, and lower rates reduce financing costs across the portfolio. More importantly, infrastructure becomes more attractive to investors when bond yields decline, which can push up valuations. Brookfield has also built inflation protection into many of its contracts, so it continues to grow even during volatile periods. It’s a stable holding with global exposure and long-term cash flow.
Bottom line
These three dividend stocks offer a compelling strategy if you think interest rates have peaked. Goeasy brings high growth potential, SmartCentres delivers generous monthly income, and Brookfield Infrastructure offers global diversification with inflation-linked contracts. All three are poised to benefit from easing financial conditions and could help you position your portfolio for the next phase of the market cycle. When interest rates start to decline, this kind of mix could offer the right balance of income, resilience, and upside.
