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

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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.

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