With the Canadian stock market surging nearly 22% over the past year and trading near all-time highs, it is becoming harder to uncover high-quality stocks that are still trading at a discount, especially those offering attractive, sustainable dividends. But that’s exactly what makes this opportunity so compelling. While many stocks are climbing, one top-notch Canadian company has seen its share price fall sharply — yet its fundamentals and dividend-growth story remain intact.
Let’s dive into TFI International (TSX:TFII), a transportation and logistics giant that’s down 38% from its 52-week high. For long-term investors looking to lock in “fast dividends” with the potential for powerful total returns, this could be the perfect moment to act.
Why you might consider TFI International
Despite its recent pullback, TFI International is no slouch. The trucking company boasts a strong track record of growing dividends — even through challenging economic cycles. Its last dividend increase in December 2024 was a hefty 12.5%, continuing a trend that has seen its dividend climb at a 10-year compound annual growth rate of 11.7%. This kind of consistent, double-digit growth is rare on the TSX and signals a shareholder-friendly management team focused on returning capital.
From a sustainability standpoint, TFI’s dividend appears rock solid. Its trailing-12-month payout ratio sits at just 36% of net income and only 20% of free cash flow — well below danger zones, suggesting the dividend is not only safe but has room to grow.
At its current price point near $124 per share, the yield might look modest at 2%, but don’t be fooled: this is a fast-growing income stream, not a stagnant one. And when dividends grow rapidly and are backed by earnings, they tend to drive strong capital appreciation over time.
A proven wealth builder
Long-term investors have already seen what TFI International can do. Over the past 10 years, the stock has delivered an astonishing 19.7% annualized total return per year. To put that in context, a $10,000 investment made a decade ago would now be worth over $60,000 — more than double the $25,420 you would have from investing in a broad Canadian stock market exchange-traded fund (ETF) over the same period.
This kind of performance shows that TFI International isn’t just a dividend grower — it’s a compounder. And thanks to its recent price dip, investors have a chance to buy into that compounding engine at a reasonable valuation.
Is now the right time to buy?
Analysts currently view the stock as fairly valued, which might not scream “bargain,” but when paired with a 38% decline from its highs and a resilient business model, it presents a decent entry point for a starter position for long-term investors. The company continues to generate strong free cash flow, and any normalization in shipping demand could reignite earnings momentum.
For investors seeking a mix of dividend growth, long-term upside, and a proven track record, TFI International might be worth a closer look as a top Canadian stock candidate. It may not deliver overnight fireworks, but with “fast dividends” and the potential for recovery-fueled gains, it’s a stock that could pay off handsomely over time.
