These Are My 5 Favourite Dividend Stocks to Buy Now

Now might be the time to add some dividend income to your portfolio. Here are five of my favourite Canadian dividend stocks to buy now.

Key Points
  • With the TSX near all‑time highs, consider holding defensive Canadian dividend stocks to earn income and cushion a potential market correction.
  • Five top picks with attractive dividend yields: EIF (3.45%); PPL (5.4%); FTS (3.5%); NPI (4.7%); PRL (~3.15%).
  • Want to see our experts favourite stock picks right now? Check out these five stocks right now!

Canada has a bunch of great dividend stocks in a wide mix of sectors. With the TSX near all-time highs, it doesn’t hurt owning a few dividend stocks. If the market corrects, you can at least earn a nice stream of income to offset any losses. Here are five dividend stocks I would be happy to hold right now.

dividends grow over time

Source: Getty Images

A top industrial conglomerate

Exchange Income Corporation (TSX: EIF) has provided a nice total return profile over the years. Its stock is up 137% in the past five years. If you add in dividends, an investor would have earned a 200% total return!

Exchange has a unique mix of aerospace, aviation, and industrial businesses across Canada. The company focuses on niche and difficult-to-get-to regions in Canada where it can be a dominant player. It has enjoyed several big contract wins in 2025. Its acquisition of Air North will take some time to integrate but is expected to meet a long-term 15% return hurdle rate.

Exchange pays a $0.22-per-share monthly dividend. That equals a 3.45% dividend yield.

An energy infrastructure stock with an attractive dividend yield

Pembina Pipeline (TSX: PPL) stock has underperformed the TSX and its pipeline peers in 2025. That should create a value opportunity for patient investors.

Pembina is one of Canada’s largest energy collecting, processing, and transporting companies. The company is making good progress in building its LNG export facility in British Columbia. Powering data centres could be another big opportunity in the future.

Even though it has a great balance sheet and good prospects for mid-single-digit growth, Pembina trades at a discount to peers. Its stock yields a 5.4% dividend today.

A safe and steady utility stock for dividend growth

If you are worried about a recession or a stock market slowdown, Fortis (TSX: FTS) is a great stock to hold. It has a very low beta, which means its stock returns do not correlate with the broader market.  

Fortis has a very stable business. It transmits and distributes power and natural gas. 99% of Fortis’s business is regulated. Everyone needs electricity and heating/cooling. As a result, demand for its services does not fluctuate much.

Fortis pays a 3.5% yield. It has raised its dividend for 51 consecutive years. It has a target to grow about 4-6% a year and raise its dividend by a similar rate

A renewables business for a turnaround

After a few down years, Northland Power (TSX: NPI) stock has started to recover. The company operates substantial wind, solar, and battery storage assets around the world.

It is set to complete two very large offshore wind projects in the next two years. Once complete, Northland’s cash flow profile should drastically improve. Sentiment for the stock is improving as the market anticipates an on-time and on-budget completion.

Investors can collect an attractive 4.7% dividend yield while they wait for that to happen. After completion, dividend growth could be a prospect for investors.

A very cheap growth stock

Propel Holdings (TSX: PRL) is the higher risk, more speculative pick amongst these stocks. It provides small consumer loans to the non-prime segment in Canada, the United States, and the U.K.

The stock has not performed well in 2025. It is down 32%. A close Canadian peer, goeasy, was hit with a short report that unnerved investors. That same sentiment has affected Propel’s valuation.

Today, it trades with a forward price-to-earnings ratio of only seven. Yet Propel is expected to grow earnings by more than four times that rate this year. A recent acquisition in the U.K. is diluting earnings in the near term but should be long-term accretive for growth and profitability.

This is a volatile stock, so position size it accordingly. It pays a 3.15% dividend yield right now.

Fool contributor Robin Brown has positions in goeasy and Propel. The Motley Fool has positions in and recommends Propel. The Motley Fool recommends Fortis and Pembina Pipeline. The Motley Fool has a disclosure policy.

More on Dividend Stocks

happy woman throws cash
Dividend Stocks

The Ideal TFSA Stock: A 5.9% Yield-Paying Constant Cash

Enbridge’s predictable cash flows, substantial growth pipeline, and long history of dividend increases underpin its long-term investment appeal for TFSA…

Read more »

woman gazes forward out window to future
Dividend Stocks

Dividend Income in Retirement: What Could Go Wrong?

Dividend investing is a proven way to create income in retirement but you must know the risks you need to…

Read more »

The TFSA is a powerful savings vehicle for Canadians who are saving for retirement.
Dividend Stocks

A 5% Monthly Payer I’d Buy for My TFSA: About $100 a Month on $24,000

Canada’s largest residential landlord offers a high yield, reliable monthly income, and a tax-sheltered foundation for TFSA investors.

Read more »

Two seniors walk in the forest
Dividend Stocks

Can Dividends Replace a Paycheque in Retirement?

Can dividends in retirement replace your paycheque? Explore how Scotiabank, RioCan REIT, and Fortis can help build a steady retirement…

Read more »

Sliced pumpkin pie
Dividend Stocks

The Fees That Quietly Eat Into a Small Investment

Many funds charge outrageous fees, but broad market index funds like the iShares S&P/TSX Capped Composite Index ETF (TSX:XIC) usually…

Read more »

dividends grow over time
Dividend Stocks

The U.S. Dollar is Rising Again: Here’s What VFV Investors Should Know

VFV investors receive both U.S. equity returns and currency translation.

Read more »

businessmen shake hands to close a deal
Dividend Stocks

A Canada-India Trade Deal Could Be Big for Infrastructure: Is WSP Stock a Buy?

India could require roughly US$840 billion of urban infrastructure investment over 15 years.

Read more »

woman considering the future
Dividend Stocks

How Much Would You Need to Invest to Earn $100 a Month in Dividends?

These two monthly-paying dividend stocks can boost your passive income in this uncertain macroeconomic environment.

Read more »