While there are several Canadian stocks that could reward you with attractive dividends, it’s not easy to find ones that offer both stability and peace of mind in today’s uncertain economic environment. Some yields look tempting at first glance, but the risks hiding underneath can often make you think twice. That’s why Foolish Investors may want to turn their focus to companies with a strong financial foundation, reliable business models, and a solid track record of returning capital to shareholders.
In this article, I’ll talk about two top Canadian dividend stocks that have built reputations around stability and now offer dividend yields that are not only attractive but feel incredibly safe.
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Great-West Lifeco stock
If we’re talking about safe Canadian dividend stocks to buy, Great-West Lifeco (TSX: GWO) is hard to ignore. This Winnipeg-based insurance and financial services firm has carved out a strong footprint across Canada, the U.S., and Europe, operating under well-known brands like Canada Life, Empower, and Irish Life.
After rallying by over 25% in the last year, its shares currently trade at $52.02 apiece, giving it a market cap of $48.5 billion. At this market price, it offers a 4.7% annualized dividend yield, paid quarterly.
In the first quarter of 2025, Great-West posted a 5% YoY (year-over-year) rise in its base earnings to $1.03 billion with the help of solid performance in its retirement and wealth businesses. Notably, the company’s U.S. operations led the charge with 13% YoY growth in base earnings, mainly supported by strong rollover sales and retirement plan wins at Empower. Similarly, its Canada and Europe divisions saw modest changes, with the Europe segment showing a 6% YoY increase in base earnings due to new annuity business and wealth flows.
More importantly, Great-West Lifeco is continuing to shift toward higher-growth, capital-efficient businesses. It’s reducing risk exposure in areas like reinsurance and focusing more on wealth and retirement services — segments that bring recurring income and long-term scalability. That’s why, for investors looking for a safe dividend stock with decades of experience and a forward-looking strategy, GWO stock checks the right boxes.
IGM Financial stock
IGM Financial (TSX: IGM) could be another top company that fits well into the list of safe dividend stocks to buy. Headquartered in Winnipeg, it mainly focuses on wealth and asset management through IG Wealth Management and Mackenzie Investments.
Following an 18% run over the last year, IGM stock currently trades at $46.10 per share with a market cap of $10.9 billion. It has an attractive 4.9% annualized dividend yield, also paid quarterly.
In the first quarter of 2025, IGM’s adjusted net earnings jumped 5.9% YoY to a record $237.8 million. During the quarter, the company’s assets under management and advisement climbed by more than 9% YoY to hit a new high of $275 billion, while its total assets, including strategic investments, climbed to $503.6 billion.
As IGM continues to deepen its reach by leveraging partnerships and growing its institutional business, its long-term growth outlook looks solid. Moreover, with a strong balance sheet, rising assets, and a focus on scalable growth, it has the potential to keep rewarding income-focused investors for years to come.
