When it comes to long-term investing, dividend stocks will often be some of the most important holdings in your portfolio.
Companies that pay a significant dividend are attractive because they provide consistent income, help mitigate volatility, and reward patience through compounding growth.
However, while there are several dividend stocks to consider buying and holding for the long haul, there are also plenty you’ll want to avoid.
For example, stocks with a high yield can look appealing on the surface; however, if the dividend isn’t sustainable, there’s a good chance it could be cut, impacting not just your income but the value of the stock.
That’s why the best dividend stocks to buy combine both an attractive yield with sustainability. So, if you’re looking to boost the passive income your portfolio generates, here are five under-the-radar dividend stocks to buy now.
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One of the best real estate stocks for dividend investors
If you’re looking for a stock that pays an attractive dividend and can provide consistent growth for years to come, Granite REIT (TSX: GRT.UN) is one of the best and offers a current dividend yield of 4.4%.
Granite owns and manages a large portfolio of industrial and logistics properties across North America and Europe.
And while Granite consistently increases its dividend each year, and has raised its annual dividend from $2.80 in 2019 to $3.40 this year, its payout ratio based on its adjusted funds from operations has actually declined over that stretch from 81% to just 65%.
A top growth stock that pays a growing dividend
Although goeasy (TSX: GSY), the specialty finance company, may not be a growth stock that’s under the radar, what some investors might not know is that it has also been rapidly increasing its dividend.
Over the past five years, goeasy’s annual dividend has increased from $1.80 to $5.84 as its earnings continue to grow each year at a roughly 20% pace.
However, even with that percentage increase in its dividend over the last half decade, goeasy still only pays out roughly 35% of its earnings. For example, last year it reported normalized earnings per share of $16.71, compared to its $5.84 annual dividend.
And not only is goeasy trading nearly 25% off its 52-week high, but its dividend yield is sitting at 35%, not too shabby for such a high-potential growth stock.
Two top royalty stocks that are made for dividend investors
One of the best and most under-the-radar dividend stocks on the TSX is Alaris Equity Partners (TSX: AD.UN)
Alaris provides financing to private companies in exchange for royalty-like cash distributions. Typically, Alaris finds high-quality small and medium-sized businesses looking for investment, then takes a preferred equity stake that pays a steady stream of dividends tied to each company’s performance.
This allows Alaris to consistently return capital to investors while retaining funds for future investments. And while the company pays an attractive dividend with a yield of more than 6.9%, its payout ratio for 2025 has been just 65% through the first two quarters.
In addition to Alaris, another royalty stock with a significant dividend yield and sustainable payout ratio is Freehold Royalties (TSX: FRU).
Freehold is an energy stock that doesn’t produce any oil and gas itself, but instead earns a royalty from other companies producing energy on its land.
Therefore, because commodity prices can fluctuate, Freehold aims to keep its payout ratio at just 60%. That’s important because when energy prices temporarily decline, like they did in the second quarter, Freehold’s payout ratio only increased to 78%, showing how sustainable Freehold’s 7.6% dividend yield truly is.
A reliable pipeline stock
While massive billion-dollar pipeline stocks don’t usually fly under the radar, some investors may have never heard of South Bow (TSX: SOBO), since it only began trading in 2024.
South Bow is a $7.5 billion energy infrastructure company that owns and operates a network of crude oil and liquids pipelines, storage terminals, and other energy infrastructure assets across Western Canada and the U.S. Midwest, including the Keystone Pipeline System.
And while it pays an attractive dividend of 7.7%, Southbow has only paid out 64% of its distributable cash flow through the first two quarters of 2025.
So, if you’re looking for a high-yield dividend stock with a sustainable payout ratio, Southbow is certainly a top pick.
