3 Wealth-Building Dividend Stocks to Buy With $500 Right Now

Wondering how you can earn dividend income and grow your wealth? Here are 3 quality dividend stocks to buy with $500 right now.

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Key Points

  • Three dividend picks to buy with $500: Intact (IFC, 2%), National Bank (NA, 3.3%), and Exchange Income (EIF, 3.6%).
  • All show dividend-growth histories and defensive/diversified businesses — recent pullbacks or momentum make them timely entry points.
  • Five top Canadian stocks our Foolish experts like even better than National Bank of Canada.

Plenty of Canadians choose to build wealth by designing a stock portfolio that collects regular dividends. Stock markets can be volatile. It pays to have some dividend income for market corrections. If you are looking for some ideas on how to boost your dividend income, here are three quality dividend stocks I’d put $500 into right now.

A top Canadian insurance stock for solid total returns

Intact Financial (TSX:IFC) may not have the largest dividend yield, but it has an exceptional dividend growth record. This stock yields 2% today. However, it has increased its dividend per share for 20 consecutive years. IFC stock’s dividend has risen by a 10% compounded annual growth rate (CAGR) over the past 10 years!

Intact has used a smart consolidation strategy to become the largest property and casualty insurer in Canada. The company has used its scale to become one of the best-priced and most competitive providers in the country. It consistently delivers returns on equity that are far superior to industry averages.

This dividend stock has pulled back 11% in the past six months. However, it has delivered great low-teens total returns for shareholders for years. The drawdown creates an attractive opportunity to start building a position with $500 of capital.

A top Canadian bank with a growing dividend

Another dividend stock to buy now is National Bank of Canada (TSX:NA). Canadian bank stocks have been having a stunning year of strong outperformance. Up 14% this year, National has been one of the worst-performing Canadian banks in 2025. However, over the long term, National has performed the best in Canada.

National has a specific focus on the Quebec market. This market is unique from the rest of Canada. National has found a way to dominate there. It tends to focus on niche services and then operate those with excellence.

It is completing a similar playbook in Western Canada with its acquisition of Canadian Western Bank. This should be a very accretive move that will provide substantial operating and financial synergies. It may be a near-term drag on earnings, but long term it should pay off.

Right now, National Bank stock yields 3.3%. It has a great record of growing that dividend, so you can expect your yield on cost to keep rising.

A diversified stock for capital gains and dividends

If you are looking for a diversified business, Exchange Income Corporation (TSX:EIF) is interesting. Like its peers above, it doesn’t have a huge yield. It pays a 3.6% dividend. That yield is down after the stock has delivered an impressive 24% return so far this year.

Exchange operates a mix of aerospace, aviation, and industrial businesses in Canada and abroad. It tends to focus on specialized niche aviation services to northern and remote communities in Canada. In the past three years, revenues have increased by a 17% CAGR and earnings per share have risen by a 9% CAGR. In its recent quarter, revenues rose 9%, income rose 23%, and the company raised its annual guidance.

Exchange has increased its dividend 17 times in the past 20 years. This stock has grown that dividend by a 5% compounded annual rate. Exchange is an interesting, diversified business to own for a mix of capital gains and attractive dividends.

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool recommends Intact Financial. The Motley Fool has a disclosure policy.

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