If I had $50,000 to invest today, I’d be laser-focused on building a resilient, dividend-paying portfolio with quality Canadian companies. Dividend investing isn’t just about income — it’s about identifying companies with durable earnings, strong fundamentals, and the ability to grow payouts consistently. That combination not only protects capital but also delivers long-term upside through compounding.
Here’s how I’d approach it, with three hand-picked TSX stocks forming the foundation of my strategy.
1. Brookfield
Brookfield (TSX:BN) is a global investment powerhouse, managing assets across infrastructure, renewable energy, real estate, and private equity. While the stock’s dividend yield is modest at around 0.5%, don’t let that fool you — this is a growth machine.
Brookfield earns both steady management fees and lucrative performance fees when it exits investments and achieves target returns for its investors. Over the past decade, the stock has delivered annual returns of around 17%, but in the last 12 months alone, the stock returned 34%.
At around $94 per share, analysts consider the stock fairly valued. Investors interested in a long-term compounder might start with a half position now (say, $2,500) and wait for broader market pullbacks to top up.
Brookfield’s 10% dividend-growth rate over the past decade speaks to its confidence and profitability.
2. Loblaw
Loblaw (TSX:L) is Canada’s largest grocery and pharmacy chain, with banners like Loblaws, No Frills, Zehrs, and Shoppers Drug Mart under its belt. It’s a classic defensive stock — people need groceries and medications regardless of market cycles.
The company continues to grow steadily, with plans to open 80 new stores and 100 new pharmacy clinics across the country this year. That kind of expansion shows continued strength in the underlying business. Since 2024, Loblaw shares have climbed over 80%, and now appear to be pausing — a healthy breather after a strong run.
At around $54 per share, it trades slightly above historical valuation averages, but analysts still consider it fairly valued. The stock yields about 1%, backed by a 7.4% 10-year dividend-growth rate and a recent 10% hike — clear signs of a thriving business.
3. Sun Life
Sun Life Financial (TSX:SLF) is a blue-chip insurer with a strong footprint in life and health insurance, wealth management, and asset management. For income-focused investors, it offers the most attractive dividend yield of the three, currently around 4.2%.
Its 10-year dividend growth rate of 8.4% suggests consistent and disciplined capital return to shareholders. At under $84 per share, the stock trades at a reasonable price-to-earnings ratio of 11.7, roughly in line with its long-term average. That valuation, paired with its growth profile, makes Sun Life an attractive holding for both income and stability.
Building the portfolio
With $50,000, I’d aim to eventually build positions in 10 high-quality Canadian dividend stocks, allocating about $5,000 to each. For these three, I’d begin with $2,500 in each — half positions — and wait for pullbacks or broader market weakness to add the remaining amounts.
This staggered approach helps manage risk while taking advantage of volatility. Each of these companies not only pays dividends but also has a track record of growing them, which is the real key to compounding wealth over time.
Investor takeaway
Dividend investing in Canada doesn’t have to be boring — especially when you’re targeting companies with strong growth profiles alongside income. Brookfield, Loblaw, and Sun Life offer a compelling mix of sectors, stability, and dividend growth potential.
With $50,000, this is exactly where I’d start.
