3 Canadian Dividend Stocks With Growing Payouts for Patient Investors

Patience pays off: these three TSX dividend stocks show improving cash flow, rising payouts, and shareholder returns for long-term investors.

Amy Legate-Wolfe

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband. Follow Amy on LinkedIn and Canada Stock Digest. Favorite Investment Quote: “October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published September 29, 2025 9:45 pm EDT

| More on: CCL.BMGTFII

Key Points

TFI International posts stronger free cash flow, a conservative 40% payout, buybacks, and about a 2% yield despite revenue pressure.
CCL Industries delivers steady organic growth, record EPS, low 27% payout, and a modest 1.62% yield with strong cash and buybacks.
Magna’s cost cuts are boosting profits, supporting a 4.11% yield, 45% payout, and value at roughly eight times earnings.

If there’s one thing that investors should know by now, it’s that patience pays. In this case, literally! Whether it’s waiting for a stock to rebound or collecting income through dividends, that patience over time can really, really add up.

And that’s certainly been the case for these three dividend stocks, three that have increased their dividend payouts consistently over time. So let’s get right into them.

TFII

First, there’s TFI International (TSX:TFII), a trucking and logistics company that keeps North America running. The dividend stock does come with some operational volatility, yet the second quarter showed there could be a turnaround on the way.

Revenue fell during the second quarter by about 10%, with freight volumes subdued across several end markets. While net income and earnings per share (EPS) also fell, free cash flow (FCF) was up by 20%, with management emphasizing margin discipline in the future.

This guidance also noted further buybacks and dividends, with the yield currently at about 2% as of writing. Furthermore, TFII’s payout ratio is at just 40%, so there’s conservative coverage that allows for stable payouts. So while shares are down for this dividend stock, now might be a great time to get in on a great yield.

CCL

CCL Industries (TSX:CCL.B) is a solid buy-and-hold candidate for investors. The company is perfect for patient investors who want dividend growth plus capital appreciation, all with lower cyclicality. That comes from diversified end markets, strong organic growth, and steady cash flow.

The dividend stock recently reported record adjusted EPS at $1.22, with sales up almost 5%, and $155.8 million returned to shareholders through dividends and $100 million in buybacks. All while retaining $962 million in cash on hand.

With a dividend yield now at 1.6% as of writing and a very conservative 27% payout ratio, this is a safe and stable dividend stock offering future growth as well. So for investors looking for income from organic growth, margin expansion, and dividends, this is one to consider.

MG

Finally, Magna International (TSX:MG) investors have been patient for a while, and it looks to finally be paying off. The dividend stock saw shares drop from supply-chain issues but has since focused on operational efficiencies.

Now, even when sales are down, the company is seeing massive improvements in its bottom line. Sales fell 3% year over year, but income improved. In fact, it even updated the 2025 outlook upwards, all while returning $324 million in dividends and buybacks to shareholders in the first half of 2025.

Now investors can grab a 4.1% dividend yield, with a 45% payout ratio. Furthermore, MG stock trades at just 8 times earnings, offering value on top of that income. So if you’re an investor believing the best is yet to come, Magna could certainly be a dividend stock to consider.

Bottom line

If you’re an investor looking for dividend stocks that continue to increase their payouts, all while improving their bottom line, then these are three to watch today. CCL is perfect for dependable dividend growth and capital returns, Magna for operational improvements in the auto sector, and TFI for sustained free cash flow. All together, these dividend stocks are perfect for the patient investor waiting for that payoff.