The Trusty Dividend Stocks That Earn Their Keep

Want dependable income? These two Canadian dividend stocks offer stable payouts and growth without chasing risky high yields.

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 October 14, 2025 5:00 pm EDT

| More on: CMGRT.UN

Income is the main goal behind investing, and that’s why dividend stocks can be so immensely popular. But while a high yield can look nice on the surface, that can change fast if there’s a dividend cut or returns are in the negative direction.

That’s why it’s important to find trustworthy dividend stocks. These are companies quietly doing their job year after year, without the need to dazzle investors with headlines or major hype. So let’s look at what makes a trusted dividend stock, and two that fit the bill.

Silver coins fall into a piggy bank. — Source: Getty Images

Trusted passive income

The main reason dividend stocks can be trustworthy comes down to the reliability of cash flow. A company can’t pay dividends without steady money coming in, so the most trustworthy dividend payers usually have recurring revenue built into their business. Furthermore, these companies are disciplined, knowing the limits and staying within them without stretching a trend or overpaying on an acquisition.

That’s why the payout ratio can be so important, with between 40% and 70% hitting the sweet spot. Just enough to leave room for dividends and investments to grow. This also means looking to the dividend stock’s balance sheet strength. Debt can be a dividend killer, so making sure a company has the cash available to keep growing dividends is key.

An easy way to discover all this? Look backwards. Dividend stocks with a long history of increases are a green flag, along with business quality. These are companies paying out dividends through pandemics, downturns, anything. Plus, they continue to have avenues for growth. All considered, these are trusted and true dividend stocks. So, here are two that fit the bill.

GRT.UN

First, we have Granite REIT (TSX:GRT.UN), a trusted monthly dividend real estate investment trust (REIT) in the industrial, commercial, and logistics real estate sector. These properties include warehouses, distribution centres, logistics facilities and more. And these properties are supported by long-term lease agreements, providing stable income to support the dividend.

Right now, the company’s dividend sits at 4.5% at writing, yet it remains well supported with a payout ratio at 62% at writing. Furthermore, it looks downright valuable while trading at forward 12.5 times earnings and 0.89 times book value! Analysts continue to rate the stock a strong buy, thanks to growth in net operating income and leasing activity in the United States.

Even better? There’s likely more to come. GRT is a dividend stock operating in the light industrial property sector. This is where ecommerce, storage, shipping, and more all combine to create a massive opportunity as the shipping space continues to expand. As long as the company keeps up leasing momentum and occupancy, it’s a solid dividend stock to consider.

CM

Another trusty dividend stock to consider is Canadian Imperial Bank of Commerce (TSX:CM). This is one of the Big Six banks, but not the biggest, offering room for expansion. The dividend stock operates in Canadian retail and business banking, commercial banking and wealth, U.S. commercial banking and wealth, and capital markets. This provides it with solid revenue through fees, trading and capital markets activity, as well as wealth and investments.

As for the dividend, CM stock offers a quarterly dividend that has long been on the rise, with 14 years of consecutive dividend increases. As of writing, it offers a 3.5% dividend yield, supported by a healthy 46% payout ratio. Furthermore, its third-quarter earnings came in strong for 2025, with net income rising to $2.1 billion and capital markets profit jumping 87%!

What’s more, Canadian banks are part of a group that don’t allow for outsiders to simply edge in on their operations. Given CIBC is one of the top performers, it’s certain to stick around for decades to come, not just years. Yet despite the trusted performance, it still trades at just 12.6 times earnings, offering a great way to jump in.

Bottom line

All together, if you’re looking for two dividend stocks offering up massive long-term income, you want to find a great deal and great performance. CM and GRT have it in spades, offering up massive income for investors looking to keep their portfolio safe while growing.