How I’d Invest $250,000 in Canadian Dividend Stocks to Never Worry About Money Again 

Have you received a windfall gain of $250,000? If you are considering investing in real estate, it will give you a 2%–3% taxable rental yield. Moreover, you have to pay for maintenance, legal fees, property taxes, and other repairs and commissions.

In contrast, Canadian dividend stocks can give you a 5.4% yield, grow your principal amount, and increase this yield to 10.8% in 10 years. This is a conservative estimate; it is the minimum you can expect. There is a possibility that your portfolio could grow your dividend faster.

Three dividend stocks to fight inflation

Some stocks can give inflation-adjusted payouts for years to come as their cash flows are consistent and sustainable.

CT REIT (TSX: CRT.UN) is the real estate arm of Canadian Tire. Their business structure is such that CT REIT has the first right to buy, develop, and lease stores for its parent. The retailer deducts rent and, as a shareholder of the REIT, earns distributions from that rent. Since the REIT does not need to worry about occupancy, its cost is low. Moreover, it increases rent by 1.5% annually. The new developments earn it higher rent and help grow distributions by 3% every July.

Power Corporation of Canada (TSX: POW) is a financial services holding company that earns regular cash flow from the dividends of its operating companies, Great-West Life Co. and IGM Financial. Its diversified portfolio of life insurance and wealth management across Canada, the United States, Europe, and China gives it an advantage to navigate risks and rewards across the financial sector. Except for the 2008 financial crisis, when POW paused dividend growth for six years, the company has grown its dividend by 7% annually.  

Telus Corporation (TSX: T) pays dividends from the subscription money it collects. Despite structural and technological changes in the telecom sector, Telus continued to grow dividends annually by 7%. However, it has slowed its dividend growth to a 3–7% range for the coming three years (2026-2029) due to price competition and high debt.

The regulatory change of network sharing has discouraged investments in fibre network infrastructure by slimming the scope to increase average revenue per user. The reduced dividend growth rate reflects this change.

Two dividend stocks to boost purchasing power

You could consider using the dividends from the above three stocks to fund daily expenses such as utilities, fuel, groceries, and basic medical care. For other expenses that need higher purchasing power, consider stocks that are growing their business.

Canadian Natural Resources (TSX: CNQ) has Canada’s largest oil and gas reserves. Last year, it purchased more reserves, which increased its debt. However, the low maintenance and high output from its reserves give CNQ a cost advantage. It calculates its cost per barrel by including maintenance costs and dividends. The company has been growing its dividends at a 10-year compounded annual growth rate (CAGR) of 22% by increasing production and changing its product mix. Its synthetic crude oil helps it realize a higher price, and a strong balance sheet helps it thrive even when the WTI crude price is low.

goeasy (TSX: GSY) is a non-prime lender that generates dividends from the interest it collects on the loans. The lender has been growing its loan portfolio by offering new loans and ancillary services, accessing new distribution channels, and entering new provinces. More loan means more interest and higher dividends. That explains the 10-year dividend CAGR of 31.9%. However, the growth rate fluctuates depending on credit risk.

Investing $250,000 in Canadian stocks

A $50,000 investment in each stock could help you earn $13,335 annually. I have taken a conservative approach and halved the dividend growth of four out of five stocks for the next 10 years.