Dividend investing isn’t just about collecting a big, chunky dividend yield. It is about picking stocks that can generate income effectively and sustainably for years and even decades.
Since inflation remains elevated, it is crucial to own stocks that consistently and predictably increase their dividends. These stocks may not always have the largest dividend yield. However, as businesses grow earnings per share, their dividend per share tends to grow in lockstep with the company.
Earnings growth tends to translate into share appreciation. That combination of income and growth is just about as good as it gets for a dividend investor. If you are looking for some stocks with this combination, here are three that yield 2% or more (and are worth buying today).
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An infrastructure play for dividends and growth
Secure Waste Infrastructure (TSX:SES) is an attractive stock for income, value, and growth. This stock yields a 2.6% dividend. Over the past few years, Secure has transitioned from a cyclical energy services company to a resilient infrastructure business.
It operates over 80 strategically located landfills and waste treatment sites across Western Canada. It caters mainly to the energy industry and industrial sector. In many instances, it is the only provider of waste solutions in its region. Consequently, it has a very dominant operating moat.
Over 80% of Secure’s income is contracted or recurring. The company generates industry-leading margins and strong free cash flows. Despite all this, this stock trades at a significant discount to other waste management peers.
To bridge the gap, the company has been aggressively buying back stock. It has bought back 7% of its share already in 2025 alone. With Secure, you collect a nice dividend and get to enjoy the opportunity for its valuation to re-rate over time.
A turnaround transportation story
TFI International (TSX:TFII) is the value play contrarian investors should look at. If you look at its stock this year, it doesn’t look too appealing.
Its stock is down nearly 40% this year. The company has been hit by a very challenging freight environment that is compounded by Trump’s tariff/trade war. It also had some operational issues last year.
Luckily, the company has noted some good momentum in correcting those issues. Under the hood, TFI is positioning itself for a freight recovery. When that occurs, earnings could rebound quickly.
In the meantime, TFI yields 2.11%. It has grown its dividend by an 18% compounded annual growth rate (CAGR) in the past five years. Even in a tough market, it generates a lot of cash. It is likely to keep growing its dividend in the future.
A top bank for dividend growth
Many Canadians may not recognize it, but National Bank of Canada (TSX:NA) has been one of the best-performing bank stocks in Canada for years. Its stock is up 126% in the past five years.
National has a key focus on the Quebec market. This market tends to be less cyclical than the rest of Canada. It has been a major reason for National’s strong, consistent results.
National also invests in largely niche areas of the banking market. While these are smaller markets, it can be a dominant player in them.
It just made a big move into Western Canada by buying Canadian Western Bank. National is known for being a great operator. It is likely to reap significant synergies and growth from the transaction over time.
National only pays a 3.3% dividend yield (lower than many competitors). Yet, with a record of over 10% compounded annual dividend growth, your yield on cost could grow quickly after buying this dividend stock.
