My family often asks me about different investments and whether I think these could be a solid buy. Yet my answer is always the same: when it comes to your own investments, there is far too much to consider to be a simple yes or no.
That being said, there are a few companies that look like they might offer a solid jump-off point. Ones that I would recommend my family, at the very least, look into, rather than just take my word for it and buy immediately. And that’s what I’d recommend for Motley Fool investors as well. Today, let’s look at three that provide a solid jump-off point on the TSX.
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FTS
First, we have Fortis (TSX:FTS), offering a great investment for those wanting lower volatility, a regulated utility, and stable dividends set to grow further by 4% to 6% through 2029. What’s more, recent earnings prove why the dividend stock is still so strong.
Net earnings in the second quarter hit $384 million, predictable income and low volatility continuing to support future buys among investors. The dividend stock offers a low beta of just 0.32 and trades at about 19 times earnings. With a dividend yield at 3.56% as of writing, supported by a 72% payout ratio, it’s a dividend stock any family member can rest easy grabbing and holding long term.
MRU
Another strong option is Metro (TSX:MRU). This consumer stock is a defensive option with a modest yield and steady cash flow. The dividend stock also operates under a 0.24 beta, with solid free cash flow. It’s an excellent option for investors wanting growth and income, while remaining fairly conservative.
The second-quarter report showed solid revenue and earnings, with diluted earnings per share (EPS) hitting $4.61, a 9.3% year-over-year growth. It also comes with a 1.59% dividend yield and 31% payout ratio, making it quite conservative and therefore well-covered. So, if you want a balanced approach, this one is a prime option for today’s investor.
EMP
Finally, we have Empie (TSX:EMP.A), another grocery stock that’s been returning not just through dividends to shareholders, but also through buybacks. The first quarter saw improvements as well, with EPS hitting a record $0.91 for the quarter, and sales up 1.5%. The company continues to invest heavily in store renovations, all while supporting investors through buybacks.
While the yield is smaller at 1.79%, its payout ratio is a conservative 27.5%. So, again, there are no worries about a cut any time soon. Furthermore, the stock looks valuable, trading at just 15.1 times earnings. So, with $400 million in buybacks planned for 2026, now is a great time to get in on the dividend stock.
Bottom line
All three of these dividend stocks are great options for investors looking for growth and income. However, the type of stock depends on the family member’s preferences. For instance, Fortis is great for conservative, income-first investors. Metro is great for a balanced family member wanting long-term growth. Empire is good for the younger family member who is willing to watch operations expand. Altogether, these are three dividend stocks that certainly belong on any watchlist.
