Ranking TSX Stocks by Yield and Momentum: My Top Picks for August 2025

Let’s create a passive income portfolio that can stand the test of time.

If you want a mix of high income and strong momentum, a few TSX names stand out as we move through August 2025. Capital Power (TSX: CPX), NorthWest Healthcare Properties REIT (TSX:NWH.UN), Franco-Nevada (TSX: FNV), and Gibson Energy (TSX: GEI) have all been making moves – some quietly building yield, others riding powerful tailwinds. Each comes with its own story, and together cover everything from utilities to gold royalties to essential infrastructure.

dividends can compound over time

Source: Getty Images

CPX

Capital Power has been one of the year’s surprise out-performers, climbing more than 40% over the past 12 months. That rally was fuelled in part by the company’s biggest acquisition ever. That’s the US$2.2 billion purchase of the Hummel and Rolling Hills facilities in the massive PJM power market. This not only expanded its generation capacity by 2.2 gigawatts but also diversified its earnings base.

The dividend, now yielding about 4.6%, was increased for the 12th straight year. Management boosted annual funds from operations guidance to between $950 million and $1.1 billion for 2025, reflecting the accretive impact of these deals. The risk here is that integrating such large acquisitions comes with execution challenges, but so far, the operational track record is holding up.

NWH.UN

NorthWest Healthcare Properties REIT offers a very different picture. The units are up only marginally year over year, but the forward yield of about 7.6% remains eye-catching. The past year has been about balance sheet repair, reducing debt, refinancing, and focusing on core healthcare assets.

Occupancy remains high, and the REIT continues to collect stable rents from hospitals and medical centres across multiple countries. However, the payout ratio is still stretched at close to 300%, meaning distribution growth is unlikely until earnings catch up. If NorthWest can keep trimming leverage and improving cash flow, its high yield could look more secure, but for now, the income comes with higher risk.

FNV

Franco-Nevada has been a star in the momentum category, with shares surging more than 50% in the past year. Record gold prices and a portfolio of high-margin royalty and streaming assets have pushed revenue and net income to all-time highs. In Q2 2025, revenue jumped 42% year over year, and operating cash flow more than doubled.

The dividend stock’s model of collecting royalties without the operating risk of running mines allowed it to maintain fat margins and keep debt off the balance sheet. While the yield is modest at just under 1%, Franco-Nevada’s growth profile is compelling. The main watchpoint is gold prices. Any significant drop could cool the rally, but the asset base is diverse enough to cushion some of that impact.

GEI

Gibson Energy sits somewhere between yield and momentum. The dividend stock is up around 17% over the past year and yields close to 6.7%. The big story in recent months was the completion of the Gateway dredging project, which boosted throughput capacity and helped set volume records.

Infrastructure earnings before interest, taxes, depreciation and amortization (EBITDA) remains steady, and cost savings are feeding directly into higher distributable cash flow. The payout ratio is slightly above the company’s 70–80% target. Yet management expects that to normalize as new projects contribute. One caution is leverage, with net debt-to-EBITDA at 4 times. Yet the extended credit facility to 2030 gives Gibson breathing room to manage it.

Bottom line

These four stocks show that yield and momentum don’t have to be mutually exclusive. Capital Power’s acquisitions have sparked a rerating in the shares while still delivering a healthy payout. NorthWest Healthcare provides one of the highest yields on the TSX, albeit with more financial repair needed. Franco-Nevada offers a low yield but exceptional price performance tied to gold. Gibson Energy combines a strong yield with steady infrastructure growth. Together, these four can bring in around $983 of dividend income by investing $5,000 in each.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
CPX$60.8382$2.76$226.32Quarterly$4,988.06
NWH.UN$4.7551051$0.36$378.36Monthly$4,996.31
FNV$247.2320$2.09$41.80Quarterly$4,944.60
GEI$25.47196$1.72$337.12Quarterly$4,991. 32

For investors, the appeal lies in the blend. That’s high yields from NorthWest and Gibson, capital gains potential from Franco-Nevada, and balanced growth from Capital Power. The challenge is managing the very different risks each carries. But with careful position sizing, this group could deliver a combination of income and momentum that’s hard to find in one place on the TSX.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Capital Power and Gibson Energy. The Motley Fool has a disclosure policy.

More on Dividend Stocks

man with shovel stands by a hole
Dividend Stocks

Forget GICs: This 5.8% Dividend Stock Pays You Monthly

CT REIT (TSX:CRT.UN) stands out as a terrific income play for investors looking for better than GICs.

Read more »

Real estate investment concept
Dividend Stocks

How the FHSA Works, in Plain English

You can hold money market funds like the BMO Money Market Fund (TSX:ZMMK) in an FHSA.

Read more »

Happy shoppers look at a cellphone.
Dividend Stocks

Why I Can’t Stop Thinking About SmartCentres REIT and Its 7.1% Dividend

SmartCentres REIT stands out for its 7.1% yield, and a 25% discount to fair value. Discover why this high-yielding Canadian…

Read more »

Colored pins on calendar showing a month
Dividend Stocks

How to Use a TFSA to Generate $330 in Monthly Tax-Free Income

These two quality monthly-paying dividend stocks can generate over $330 of passive income every month.

Read more »

warehouse worker takes inventory in storage room
Dividend Stocks

REITs Are Falling as Bond Yields Rise: This Canadian Landlord Looks Better After the Selloff

Granite REIT has fallen about 17% from its 52-week high as higher bond yields pressure real estate stocks.

Read more »

dividend stocks are a good way to earn passive income
Dividend Stocks

How to Set Passive Income Goals You Can Actually Reach

Vanguard FTSE Canadian High Dividend Yield ETF (TSX:VDY) and other dividend stocks to consider for big passive income.

Read more »

voice-recognition-talking-to-a-smartphone
Dividend Stocks

I’m passing on Telus After its 55% Dividend Cut: Here’s What I’d Watch Instead

Telus (TSX:T) is getting cheaper, but one TSX telco still looks like a better overall value.

Read more »

Concept of rent, search, purchase real estate, REIT
Dividend Stocks

Housing Needs More Supply: This Canadian Builder Doesn’t Need Home Prices to Boom

Canada needs dramatically more homes, even if home prices don’t rise.

Read more »