Safe and Steady: A 4.8% Yield from 2 Delicious Dividend Stocks

When the markets get rocky and the headlines get spicy, it’s nice to know that some things in life, and investing, stay satisfyingly steady. That’s where Canadian dividend stocks like Restaurant Brands International (TSX:QSR) and Pizza Pizza Royalty (TSX:PZA) come in. These fast-food powerhouses may serve up very different flavours, but they share a commitment to consistent dividends. As one reports earnings this week, investors hungry for yield and stability may want to dig in.

QSR

Let’s start with the bigger fish, or in this case, the global burger, donut, and chicken empire. Restaurant Brands International (RBI) owns Tim Hortons, Burger King, Popeyes, and Firehouse Subs. It’s the heavyweight here, with a $30.8 billion market cap and over 32,000 restaurants worldwide. Despite some sluggishness in the first quarter of 2025, the business still delivered 2.8% system-wide sales growth and reaffirmed guidance for 8% or more organic adjusted operating income growth in 2025.

RBI’s Q1 results revealed total revenue of US$2.1 billion, up from US$1.74 billion a year ago, but operating income dipped 20%. Still, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) grew to US$642 million, and adjusted diluted earnings per share (EPS) came in at US$0.75, beating estimates. The real highlight? The $0.62 per share quarterly dividend, which works out to a forward yield of 3.6% for Canadian investors.

Looking ahead to Q2 earnings this week, investors should watch for a pickup in comparable sales, especially in Tim Hortons and Burger King. Management hinted at improving momentum in Q2, and with inflation easing in North America, more customers might be returning to their regular coffee and burger runs. Analysts will also be focused on updates from the “Reclaim the Flame” program for Burger King U.S., which aims to boost profitability with store remodels and digital investments. So far, $143 million of the planned $550 million investment has been deployed.

PZA

Now onto a much more modest, but equally reliable, income stock: Pizza Pizza Royalty. With a forward yield of 5.9% at writing, this one’s less flashy but undeniably juicy for passive income seekers. PZA doesn’t run the pizza business directly. Instead, it collects royalties based on sales at 797 Pizza Pizza and Pizza 73 restaurants in its royalty pool.

In its first quarter of 2025, Pizza Pizza reported a 1.2% rise in same-store sales and a 1.6% increase in royalty pool system sales. Adjusted EPS remained flat at $0.23, but the company maintained its monthly dividend of $0.0775 per share. With a payout ratio of 117% and a working capital reserve of $5.2 million, the company seems comfortable keeping distributions stable, even during softer seasonal quarters.

What makes PZA especially appealing is its low volatility. With a beta of just 0.67 and a loyal customer base, the company doesn’t need to grow rapidly to remain rewarding. In fact, the Pizza Pizza brand has continued to see steady guest traffic and higher cheque sizes, despite a tighter consumer environment. Its plan to grow the traditional restaurant network by 2% to 3% this year offers just enough expansion to keep things interesting.

Bottom line

Together, QSR and PZA offer Canadian investors a blended yield of about 4.8% at today’s prices, with the added bonus of brand recognition and recession-resistant appeal. RBI offers long-term upside and global diversification, while Pizza Pizza brings in that sweet, predictable royalty income with less volatility. Together, $5,000 invested in each stock could bring in $474.50 annually!

They’re not without risk. RBI’s international plans are ambitious and debt-heavy, and PZA is tied closely to Canadian consumer habits. Yet both have a strong dividend track record and continued potential to deliver steady income. For income investors looking for safety with a side of ketchup, this pair might just be the perfect combo.